Purchasing a home is one of the most significant financial decisions in a person�s life. A home loan enables individuals to acquire property without immediate full payment through structured EMIs. Understanding home loan fundamentals helps borrowers make informed decisions.
A home loan is a secured loan provided by banks or housing finance companies to purchase, renovate, or construct residential property. The property acts as collateral until the loan is fully repaid.
Fixed-rate loans remain constant throughout the tenure, while floating-rate loans fluctuate based on market interest conditions.
Banks evaluate income level, credit score, employment stability, and existing debts before approval. A higher credit score usually results in better interest rates.
A well-structured home loan helps individuals achieve the dream of homeownership with financial comfort and long-term stability.