What is Home Loan?
A home loan is a secured loan from a bank or housing finance company used to purchase, construct, or renovate a residential property, with the property itself pledged as collateral until the loan is repaid.
Most home loans in India carry a floating interest rate linked to an External Benchmark Lending Rate (EBLR), which in turn tracks the RBI repo rate — so your EMI can rise or fall over the loan's life as the repo rate changes.
Under Section 24(b) of the Income Tax Act, interest paid on a home loan for a self-occupied property is deductible up to ₹2 lakh per year (old tax regime only); the principal repayment separately qualifies for Section 80C.
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