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.

In India, financial institutions offer different types of home loans to suit the specific needs of customers.

This is the most common type of home loan. As the name suggests, these loans are meant for buying a new apartment, row house, or bungalow, from a developer or a development authority. You can use this type of loan to purchase under-construction or ready properties.

You can avail a home construction loan if you already own a plot and require funds for the construction of the house on that land.

If you already own a house and want to renovate it, you can apply for a house renovation loan. You can use a house renovation loan for painting, tiling, roof repairs, etc.

As your family grows, you may need a bigger house to accommodate all the members comfortably. A home extension loan could be helpful in such a situation. You can get this type of loan to fund the cost of adding a new room/floor to your home, extending the kitchen, building a new bathroom, etc.

If you wish to buy a plot with the intention of constructing your own home in the future, you can avail a plot loan.

Housing Finance Companies (HFCs) offer this unique service that allows you to transfer your existing home loan from one lender to another. A Balance Transfer is usually done to get loans at a lower interest rate, flexible repayment terms and some other benefits.

Tax Benefits: A borrower can claim an Income Tax deduction of up to Rs. 1.5 Lakh under section 80C of Income Tax of India 1971 Act. While Section 24B of the Income Tax Act of India allows for a deduction of up to Rs 2 lakh on the interest portion. The income tax deductions are only available after the house has been completed. You cannot claim income tax deductions while the property is being built.

Tax Benefit on Second Home Loan: If you buy a second home, you will be eligible for an Income Tax deduction under section 24B of the Income Tax Act.

Home Loan Balance Transfer: It gives you the benefit of a balance transfer to another lender with a lower interest rate.

Ease to Buy a New Home: because It makes it easier to buy a house because it can be repaid in easy monthly installments.

No prepayment Charges It has the highest repayment tenure that goes up to 30 years and by extending the loan tenure one can reduce the EMI liabilities

No Need to Pay Rent: It enables you to buy your own home so there is no need to pay rent. It is better to pay EMI for your own home.