A home loan is a secured loan that is obtained to purchase a property by offering it as collateral. Home loans offer high-value funding at economical interest rates and for long tenors. They are repaid through EMIs. After repayment, the property’s title is transferred back to the borrower.
The lender possesses the legal rights to recover the outstanding loan amount by the sale of the property in question in case the borrower cannot repay the dues.
Types of Home Loans
- Home purchase loan: Taken to purchase a home.
- Home improvement loan: Taken to repair/renovate a home.
- Home construction loan: Taken to build a new house.
- Land purchase loan: Taken to buy a plot of land for constructing his/her own house.
- Home extension loan: Taken to add another floor, room, garage, bathroom, or kitchen, etc.
- Joint home loan: Taken by two or more people, for instance, spouses.
- Home loan balance transfer: Allows you to switch lenders and transfer your outstanding loan amount to enjoy better terms and conditions and lower interest outgo.
- Top-up home loan: Allows you to borrow funds over and above the outstanding loan amount at nominal rates and for any purpose.
If you are looking for a home loan, familiarise yourself with the tips to get your home loan approved instantly and then fill out the online home loan application form. In case of loan applications made offline, you can drop by at the nearest branch.