Home loan is a loan product where the lender provides funding for purchase or construction of a house/ residential property. The housing loan may be availed either
for buying a new house or resale of residential house. One can also avail a housing loan product, for the purpose of buying a plot of land and carrying out
construction on the same, which is called composite loan.
Home loan 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 any changes in base rate of the bank.