Home Loans Meaning
Home Loan Meaning
A home loan is a secured loan which is a purchase of property by offering it as collateral. It is a sum of money borrowed from a financial institution or bank to purchase a house. The excessive cost of real estate in India means that to be a homeowner, you usually have to avail of a Home Loan. But what is a home loan meaning? It is a loan you take to purchase a residential or commercial property.
When you avail yourself of a Home Loan, you mortgage your property to your lender. Each month, you then repay a portion of the principal amount, along with the interest, through EMIs. Both the interest and principal components qualify for a tax deduction. You gain complete ownership of the property at the end of the tenor when you repay the principal and interest in full.
There are many kinds of home loans that you can avail yourself.
Home Purchase Loan – This lets you buy your dream home that fits your budget.
Construction Home Loan – If you want to build your own house, this is the right fit for you!
Land Purchase Loan – As the name suggests, this allows you to buy land.
Home Improvement Loan – Any renovations or reconstructions fall under this category.
Home Repair Loan – This is mainly for the much-needed repairs around the house.
Home Extension Loan – If you just decided to make your home loan more prominent and spacious, this would be a viable choice!