A loan is an amount that is sanctioned by the banks based on certain documents, income of the individual and his capacity of repay the loans. A loan is been sanctioned to an individual with certain interest that is remitted by the bank. A beautiful home is a dream of any individual. Thus, there are financial institutions that provide loans and assist them. Banks offer loans at low interest rates. Home loans are even providing for renovation of already built houses. The loan amounts are usually paid in installments that may be monthly or annually, as per the customers' wish. The individuals with the history of bad debts are very difficult for them to obtain loans and if at all they have been sanctioned with the loans, the interest rates are relatively high compared to the usual ones. Thus home loans are of greater advantage to individual's who cannot afford to pool in the entire capital to an individual.