Sajan Thomas

WHAT IS HOME LOAN? Home loan is an amount being lent by various banks or NBFC to the individual to buy a house, purchase a plot, construct a house, repair & renovate the house, balance transfer of existing home loan, etc. Bank or NBFC mortgaged the property and charged EMI (Equated Monthly Instalment) on the loan amount being lent by them. EMI consists of both interest and principal amount, which has to be paid by the borrower to the bank or NBFC. EMI calculation depends upon three factors i.e. (i) Loan Amount, (ii) Loan Tenure, and (iii) Rate of Interest. EMI on loan amount remains same throughout the loan tenure, if rate of interest not changed. In India, owning a home is one of the key factors of success. There has been a continuous desire to own a home as there is a significant rise in the disposable incomes, particularly in urban and semi-urban areas, tax rebate on repayment of housing loans, declining rate of interest and rises in the nuclear family,. As there is a huge demand,