Home Loan is a loan provided by a bank or a financial institution for the purchase of a residential property. The loan can be used to purchase a new/ resale house, construct a house or to buy an under-construction house from a builder. The same property will serve as a security.
The demand for home loans is very high in India. Apart from fulfilling the dream of own house, it also helps in wealth creation in the long term. Property is proven to be an appreciating asset since the price of the house is expected to rise over a period of time. This makes financing of such a purchase by borrowing a smart method to own and create an asset without having all the funds for the purpose at the moment.