Home Loan / Housing loans which is sanctioned to buy or purchase or to own a house or residence is a known as a Home Loan / Housing loan. Any qualifying individual can avail housing loan subject to the purpose of owing a residence only. Home loans are not sanctioned to purchase any commercial premises like shop, office, warehouse or factory etc. Home Loan / Housing Loan is a type of secured loan as the house or residence purchased is mortgaged to the lending institution till the full & final Payment of the loan amount. This is a long term loan and the home loan repayment period could be anywhere between 5 years to 30 years. The rate of interest generally varies within the range of 8 % to 13% depending upon institution to institution. Floating interest and Fixed interest are the available interest calculation options to the borrower of Home Loan / Housing Loan in India. The government policies also impact the rate of interest on Home Loan.
