Understand The Types Of Home Loans In India
Posted by arjun1 on May 16th, 2019
Today, in the financial loan market, there are many national as well as private lenders who offer home loans. Well, what you need to understand is the type of home loans options offered by the lenders, and to know which one is perfect for you. Every borrower has a different set of expectations, and so the type of loans availability. The various types of Apnaloan home loans in India that are generally available are:-
Home-Purchase Loan: The loan amount is used to purchase to a residential property, and almost all the financial institutions usually provide up to 80-85% of the market value of the home loan amount. The interest rate offered on these loans is either fixed or floating. It all depends upon your current financial scenario.
Land Purchase Loan: If you want to purchase a plot or a land on which you want to construct your dream house, then you can choose this type of a loan. Usually lenders lend up to 80-85% of the price of the plot or land. There are many lenders who lend land loan for the purchase of residential plots. Well some lenders have a clause that requires the buyer to start construction within 6 months of land purchase. In addition to this, just make sure that you need a credible lending institution that provides an affordable home loan interest rate, or can provide you some auto-adjusted benefits on interest rates extendable into the future. So, accordingly, we would advise you to plan your future course beforehand.
Construction Home Loans: - Most of the financial institution issue home loans in India to the applicants who really want to construct a house on a plot you purchased. The procedure and approval process of home loans for construction purpose is slightly different in certain aspects than the commonly one’s. Some of the certain aspects are like- the plot or land should have been bought within a year, and the borrower has to make a rough estimate of the cost that will be making incurred for the construction of the house. In addition to this, the cost of the plot is not included in the loan amount, lenders only considers the estimation for construction of house into account.
Home Improvement Loan: - This type of home loans in India is taken by the individuals who own a house, but due to lack of funds, the work stuck in between. The renovation work includes- repair to existing house, painting of walls, digging a bore-well, renovating kitchen, water-proofing work, electrical wiring in your house, etc.
Home Extension Loans: - if you are among those who want to expand their existing house, you can opt for home extension loans. Few lenders differentiate this loan based on the purpose of expansion. Well most of the lenders include this type of loan as a part of their home improvement loans.
NRI Home Loans: - This type of loan is specifically designed for non-resident Indians who are passionate and interested in buying residential properties in India. Well, the basic structure for NRI Home Loans in India is similar to the regular home loans, only the paperwork is bit different than the regular one.
Hence, try to choose a lender or an institution possessing a dedicated and experienced workforce who will guide you through the entire process, and offers an appealing home loan interest rate.
Hope this information helps you! Happy borrowing!