Home Loan

A home loan (also called a housing loan or mortgage) is a type of loan provided by a bank or financial institution to help you buy, build, or renovate a home.

Here's a simple breakdown

Definition

A home loan is a sum of money borrowed from a lender to purchase or construct a house. You repay it over a fixed period (called the loan tenure) through monthly installments known as EMIs (Equated Monthly Installments).

How it Works

• You apply for a loan ? Submit documents and income proof.
• The bank checks eligibility ? Based on income, credit score, and property value.
• Loan approval ? The bank sanctions a certain amount.
• Disbursement ? Money is released (either fully or in stages if it's under construction).
• Repayment ? You pay monthly EMIs that include both principal + interest.