Finance Bazar, as the name advise is a loan taken for purchasing or construction of home / residence.
Apart from this, home loan is also taken to buy land and construct a house on it or to clean or repair an existing property. Home loan, thus, helps in awareness of dream of owning a home even if a person / family do not have ready cash to pay it all up front. There are certain lending norms for advantages a home loan and these vary slightly from one lender to another. Banks usually lend between 75-80% of the value stipulated in the agreement and the rest amount is borne by the buyer (borrower). The valuation of the property is carried out by the bank and in cases and is usually come out to be lower than borrower s expectations.
The lending rate varies from one lending institution to another and also depends on how the economy and real estate sector is performing.