As the name refers the Home Loan is a loan taken by the person from the bank for house construction, house purchase or house repairs.

If you want to take loan for house construction, then according to the Market Price of that house yopu get 80% - 90% of it as a loan. 

The bank keeps the house as its property till you repay the loan.

Bank will give the 30 years of time span to repay the loan with the interest rate 6.65%.

Now question arises, Why we go for Home Loan? There are some benefits of home loan:

1. Interest rate is less : 6.65% interest rate less than the normal.

2. Enough time span to repay the loan: 30 years is more than enough time to repay the borrowed money with interest.

3. Home Bank Transfer facility

4. Top-up Loan facility

There are two types of Home Loan:

1. Fixed rate Home Loan:

In Fixed rate Home Loan the interest rate of the loan remains fixed during the whole time you repay the money.

2. Plotting rate Home Loan:

In Plotting rate Home Loan the interest rate varies time-to-time.

There is 1 - 2.5% less interest rate than the Fixed rate Home Loan.