A Home loan means a amount of money borrowed from bank or any financial institution to purchase a flat or house. It consists of a fixed or variable interest rate and payment plans and terms. A certain rate of interest to be paid with the EMI every month. The property papers are taken as a security by the Bank for the Home Loan. It can also be taken for construction of a house over a piece of land or ready to move-in property by mortgaging the same to the bank. The property can either be commercial or personal in nature.
The amount of loan is decided by Bank on the basis of income of the Borrower and the purchase value as well as market value of the property. The property to be purchased should legally and technically be acceptable for the purpose of creating mortgage.