House Loan

A home loan, also known as a housing loan or mortgage loan, is a sum of money borrowed from a financial institution to purchase, construct, or renovate a residential property. The borrower repays the loan in monthly installments (EMIs) over a set period, with the property typically serving as collateral.

Here's a more detailed explanation:

What it is:

• Financial product: A home loan is a type of loan designed to help individuals finance the purchase or development of a house.
• Secured loan: The loan is secured by the property itself, meaning the lender can seize the property if the borrower fails to repay the loan.
• Repayment Borrowers repay the loan amount, along with interest, in regular installments over a period of time, typically 10-30 years.
• Collateral: The property purchased or constructed with the loan serves as collateral for the loan, providing security for the lender.