Home Loan is the money that is advanced to the borrower for buying the home, apartment or flat fora living. Lender provides this loan with the interest on the lending amount. Bank demands its money back after a long period, 30 years. The borrower has to repay the amount of loan every month with the interested amount and this amount is completed by the time. People who can’t get the enough money to buy their own home or they were living in the rented houses, theycontact the banks for getting the finance for building their own home. As getting the home loan is long term procedure so borrower has to pay the low rate of interest over the loan. Home loan borrower enjoys the less tax facility because they don’t have to pay more tax like other borrowers.
Down payment is required by the lender at the time of borrowing. The loan is fixed with the interest rate this interest rate remains same throughout the life of loan. It could be changed if the bank changes its policies for interest. A borrower has to send his income statement every year to the lender more he has to inform the lender if he changes the job. Because bank wants to know the source from where people repay the amount of loan. If borrower changes his premises or do some changing in property he must inform the bank about this.