A home loan, also known as a mortgage, is a type of loan specifically used to purchase a house or property. Borrowers receive a sum of money from a lender, which they agree to pay back over a set period, usually with interest. The property itself serves as collateral, meaning if the borrower fails to repay the loan, the lender can take possession of the property. Home loans come in various forms, including fixed-rate and adjustable-rate mortgages. A fixed-rate mortgage has a constant interest rate throughout the loan term, while an adjustable-rate mortgage may change after an initial period. Borrowers typically need to meet certain criteria, such as creditworthiness and income stability, to qualify for a home loan.