# Home Loans in India Guide

## Key Overview
- **Summary**: A home loan lets you purchase, construct, or renovate residential property by borrowing from a bank or housing finance company. The property itself serves as collateral. You repay through monthly EMIs over 15-30 years. Home loans offer the lowest interest rates among retail loans and provide significant tax benefits under Section 80C and Section 24 (applicable under the old tax regime only — not available if you have opted for the new tax regime, which is now the default).
- **Interest Rates**: Typically 8.40% to 10.50% (linked to RBI Repo Rate).
- **LTV Caps**:
  - Up to ₹30 Lakhs: Up to 90% LTV
  - ₹30 Lakhs to ₹75 Lakhs: Up to 80% LTV
  - Above ₹75 Lakhs: Up to 75% LTV
- **Tax Benefits**:
  - Section 80C: Principal repayment up to ₹1.5 Lakh/year (Old Regime).
  - Section 24(b): Interest deduction up to ₹2.0 Lakh/year for self-occupied property.
- **Prepayment Rules**: 0% penalty on floating-rate home loans sanctioned to individual borrowers (RBI Circular RBI/2014-15/181).