Loans & credit
Home loan
Also known as: Housing loan
A long-term secured loan to buy property, offering the lowest interest rates among common loans.
A home loan is secured by the property itself, so it carries the lowest rates of any big loan, often 8.5% to 9.5%.
Tenures stretch up to 30 years, and the principal and interest can qualify for tax deductions under the old regime.
Because tenures are long, prepaying even small amounts early saves a startling amount of interest.
For example
A ₹50L home loan at 9% over 20 years costs roughly ₹45,000 EMI and over ₹58L in total interest if never prepaid.