What is Home Loan?

Home loan is an amount of money that an individual borrows from a bank or money lending company to buy a home or property. Home loan can be taken at a certain rate of interest to be paid with the EMI every month. In home loan the property or home is taken as a security by the bank or money lending company. The property can be personal or commercial in nature. When the borrower don’t pay the dues, the lender or bank will hold all the legal rights to recover the outstanding loan amount by sale of the property in auction

    Types of Loans- Loans are divided in two broad categories such as secured loan and unsecured loan

    Types of Home Loans:

    Home Purchase Loan: Home purchase loan is the loan that one takes for buying a home.

    Home Improvement Loan: Home improvement loan is taken for expenses that related to repairs of your home or renovation.

    Home Construction Loan: Home construction loan is taken when you are building a new house.

     Land Purchase Loan: This loan is useful for those who wish to buy a plot of land for constructing his/her own house.

     Home Extension Loan: This loan is useful for people who are planning to expand your home or add another room, bathroom or kitchen to your home. .

    Home Loan Balance Transfer: If you want to transfer your loan from one lender to another, you can apply for home loan balance transfer.

    Top up Home Loan: If you want more money above, your outstanding amount than you can use top up home loan facility.

    Who Provide Home Loan-

    Banks and other moneylenders provide home loan facility. You can directly reach out to them by online or offline.

    Requirements for Home Loans – 

    Below are the some common documents required for home loan. 

    • Age Proof like Class 10 marks sheet, Birth certificate, etc.
    • Address Proof like Voter ID, Passport, Utility bills, etc.
    • Income Proof like Salary slips and ITR details.
    • Identification Proof like Aadhaar Card, PAN card, Passport, Voter ID, etc.
    • Existing Loan Documents (if any)
    • Documents of Property to be Purchased

    How to Apply for Home Loan – You can apply online or directly visit the bank or moneylenders office. You need all the basic documents and property details, which you are going to buy.

    BENEFITS OF A HOME LOAN

    No prepayment Charges: – There are no prepayment charges on floating rate home loans.

    Tax Benefit – You get the tax deduction benefit by the government of India on the principal as well as interest paid on home loan. You cannot claim the income tax for under construction property.

    Balance Transfer Facility – If another moneylender providing you lower interest rate than your current moneylender, in this situation you can transfer your home loan from one lender to another lender burden.

    Easy Buy – Everyone wants their own house and somewhere not possible for many to buy a house due to financial situation and Home loan make it easy.