Here are some of the important features and benefits of home loan:

Flexibility to choose a tenure: Most banks give you the flexibility to choose your home loan tenure, which generally ranges from 15 – 30 years. The tenure you choose directly impacts the EMI you pay every month.

Comparatively cheaper than personal loans: The rate of interest on home loans is generally lower in comparison to the personal loans. This is because home loans are generally secured loans whereas personal loans are unsecured loans.

Tax benefits: You get tax benefits on both the interest amount and principal amount you pay. The interest paid can be claimed for a deduction of upto Rs 2 lakhs every year, whereas the principal amount paid can be claimed for a deduction of upto Rs 1.5 lakhs per year.

Home loan balance transfer: This facility allows you to transfer your outstanding loan amount from one lender to another for the purpose of taking advantage of lower interest rates.

Check out some of the most common types of home loans available from banks and financial institutions:

Home loan for purchase: Most commonly available, this type of loan is for purchasing a residential property, whether it is a resale home, a ready-to-move-in home or an under construction home.

Home loan for construction: This loan is available only for construction of a house and is offered to those who own a piece of land.

Home loan for renovation: This can be availed for making renovations or improvements to an existing home.

Bridge home loan: This loan is availed by those who are looking to upgrade their homes to bigger or better ones. Such a loan helps meet shortage of funds that arises due to time lag between sale of existing home and purchase of new one.

Step up home loan: Designed primarily for young salaried professionals, this home loan helps you avail a bigger amount as compared to your eligibility under regular home loans. Also, under these loans, the EMIs are kept lower during initial years.

Balance transfer home loan: This facility allows you to transfer your existing home loan from one lender to another for the purpose of taking advantage of better interest rates.