Banks and other financial institutions offer home loans for the purchase of the property. You can also buy/construct/renovate/extend your house with this money and repay it gradually within the chosen time period. Home loans are secured against the property, and if you fail to repay, the lender can take over the property from you and sell it to recover the dues. The eligibility for a home loan depends on an applicant's income, credit history, property value and location. Based on these factors, the maximum loan amount is calculated.