What are Home Loans? Home loan is financed by banks to buy or repair/renovate a house. Home loans are provided based on the market value, mainly estimation given by banks or the registration value of the property. Banks do not consider other charges like Stamp Duty, Registration Charges, etc. while considering the home loan. Repayment of the Home Loan : Home loans are repaid through monthly installments (EMI) spread over over 20 years. Some of the banks provide housing loans for a tenure extending up to 25 - 30 years. Types of Interest rates on Home Loans : Home loan in India can primarily be classified into two categories on the basis of interest rates i.e. Fixed rate and Floating rate of interest. There are very few lenders in India who offer pure fixed rates where the rate of interest remains constant for the entire tenure of the home loan. In floating home loan type, the rate of interest on such loans is subject to change whenever there are changes in base rate of the bank.
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