Owning a home is a dream for everyone and it has become really easy as variety of home loan options are available in the market, provided by different banks/ financial institutions. A home loan is a type of loan where funds are provided by the lender (Bank/ Financial Institution/ NBFC or a Housing Finance Company) For Home purchase loans: for the purchase of a new home. Land purchase loans: for purchase of land for home construction/ investment purposes. Home construction loans: for the construction of a new home. Home extension loans: for expanding/ extending an existing home. Home improvement loans: for implementing repair works/ renovations in a home that you have already purchased. Refinance loans: helps you pay off the debt you have incurred from private sources like relatives/ friends, for the purchase of your present home. Loans to NRIs: to build/ buy a home in India. EMI is payable till the loan is paid back in full. It consists of a portion of the interest as well as the principal. Balance transfer loans: helps you to pay-off an existing home loan and avail the option of a loan with a lower rate of interest. This is provided for resenditial property and is a secured loan, as it is offered against the property for which the bank is providing the funds and same property is taken by lender as a security. Normally banks/ NBFC or housing finance companies provide 75% - 85% of the cost of property provided the borrower have the ability to pay the instalment for such a loan.