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Types of Home Loan
Everyone in this world dream for a home. But these days property rates so high that, it is difficult for common people to buying dream home through their savings.
In India Home Loan is the best option for any common man who is planning to buy a property.Usually, people think that a home loan is one of the biggest liabilities. Considering the huge amount and the long tenure involved, however home loan also offers some benefits.
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1. HOME PURCHASE LOAN
This is the most popular and commonly availed home loan where the loan amount is utilized to purchase a residential property. Financial institutions usually provide up to 80-85% of the market value of the house as loan amount. The interest rate on these loans is either fixed,floating or hybrid
2. HOME CONSTRUCTION LOAN
This is the most popular and commonly availed home loan where the
loan amount is utilized to purchase a residential property. Financial institutions
usually provide up to 80-85% of the market value of the house as loan amount. The interest rate on these loans is either fixed,floating or hybrid Some borrowers of home loan would like to construct a house as per their own design specifications instead of buying a ready to move house from the market.To serve this segment of loan takers, financial institutions issue home loans to applicants to construct a house on a plot owned or co-owned by them. The loan application and approval process for home-construction loans are different-in certain aspects than from the commonly available housing loans."The plot or land on which the house has to be
constructed should have been bought within a year for its cost to be included in the total loan amount. Unless this condition is satisfied the value of the plot cannot
be included in the total loan amount.
"The borrower has to make a rough estimate of the cost that will be incurred for the construction of the house, which will be part of the loan amount. If the cost of plot is not included in the loan amount,only the estimation for construction of house is taken into consideration,"
3. HOME EXTENSION LOANS
Home expansion or -extension loans are useful for people looking to expand their existing house. Expansion can include alteration of the current structure of the house
to add extra structures like a new room, staircase, balcony, compound wall, etc. Few banks differentiate this loan based on the purpose of expansion of the current
house. Most banks include this type of loan as part of their home-improvement
loans.
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Latest Home Loan Rate (Source : Times Property 13 Dec 2014)4. HOME IMPROVEMENT LOANS
Home improvement loans are another popular form of loans usually taken by individuals who own a house, but lack funds to renovate it. Renovation like repairs to existing house, painting of the walls, digging a bore well, water-proofing, electrical wiring, among others, can be carried through this loan.
5. NRI HOME LOANS
NRI home loans are specialized home loans that assist non-resident Indians who are interested in buying residential property in India.Though the structure of this home loan variant is similar to the regular home loans, the paperwork is a bit more exhaustive.
6. HOME CONVERSION LOANS
Existing home loan borrowers who wish to move into another property can avail a home conversion loan to buy a new house.
7. LAND PURCHASE LOAN
A land purchase loan is exclusively meant to purchase plots for residential purposes.
Tag : Home Loan, Property In India, property in India, residential property in India, buying residential property, Home improvement loans, Home Conversion Loans, NRI Home Loan, Home Improvement Loan, Home expansion Loan,
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