Home loans in India are one of the main factors behind the boom in the real estate. A home loan can be taken for the construction, renovation or extension of your home. It also includes loans taken for land purchase or for paying the stamp duty.

Many competent and reputed home loan financing companies like the ICICI, HDFC, Reserve Bank of India etc offer great loan schemes. There are generally two types of loan rates-floating and fixed. In case of floating home loan rates, they vary according to market conditions. In a loan on a fixed rate, the rate of interest remains constant through out the repayment period.

Though the home loan rates have risen slightly, the rise has had no effect on the demand for home loans. Even the developers rely on new construction home loans. When you take a new home purchase loan, it is disbursed in accordance with the credit policy of the financing agency. The agency will verify your credit history and will act accordingly.

The new concept in home loans is the home equity loan where you can mortgage your existing property and get a loan which you can use for any purpose. You can get upto sixty percent of the market value of the property.

In India house loans are available at reasonable interest rates, so this is encouraging the middle class to buy their own property rather than spending that money on rent!

Because of the increasing competition among the agencies offering loans, it is expected that you will be flooded with appealing offers. Lenders usually advertise particular home loan rates but these may not be the rates you may be actually offered. Your loan rate will actually depend upon what the agency thinks of your pay-back ability. It also depends upon the term of repayment and the amount of the loan.

But before you take any decision, make sure you have some knowledge of loan trends in the market. You can also search online to find relevant information. You should also not hesitate to ask the bank for a better deal. So, explore your options and get a home loan!