Is your fulfilment of a dream house yet to come true? Yes, the dreams can be true and you can own a dream house and also get financial help from banks or even non-banking financial institutes. But before that, you must know the various types of Home loans available in India. In India, lenders offer a variety of loans with related purpose. Let us figure out some of them as available in our Indian market:
Loans against Land purchase:
Borrowers, many a times, prefer buying a plot of land to construct a dream house. Banks, offer loans for such categories too. Borrowers can avail this for either constructing a residential complex or even use it as an investment.
Loans against Home Purchase:
These are one of the most common loan types available in the market. And yes, it is easier to get. This loan can be used to buy a new property or even buy an old one from the previous holder. The home loans of this type are either charged on interest of fixed rates or on interest of floating rates or even as a conglomeration of both and called a hybrid one.
Loans against Home construction:
Borrowers who want to construct their own apartments/houses can avail this kind of home loan. And hence, obviously the various processes including the application and the approval are different from the usual types of home loans available. There are certain things that the borrower has to keep in mind to ensure hassle-free loan for such types and they are:
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- The plot of land needs to have been bought within a year.
- The borrower needs to plan a rough estimate of the construction and then apply for loan.
- Lender examines the estimates well enough and decides if the loan is to be sanctioned.
- Acceptance or denial of application is intimated to the borrower.
- In case of acceptance of loan application, the loan amount may be either disbursed at once or in instalments based on the house construction.
Loan against Home Improvement:
There may be list of things that needs to be taken care of in your existing house. This type of loan takes full care of it. This is because this type of loan provides cash for renovation including works like external painting, internal painting, electrical work, repair, tiling, waterproofing, water tank constructions, flooring, etc. Yes, you can make your house a dream home if it currently isn’t.
Home Loans for NRI:
In case you are a non-resident and have left the country for whatsoever reason and plan of a comeback, you can avail this kind of loan and have a dream house in your own soil. This is a very specialized loan given to NRIs so that they can have their own house in India. Almost every bank provides such loan. It just needs an elaborative paperwork including the other formalities as for other types of home loan.
Loans against Expansion or Extension of existing house:
In case you want to have additional rooms or balconies or bathroom or even an entire floor, you can avail such type of loans. Yes, your past credit history matters to avail such loans and it case found perfect, you can get up to 85% of the amount required for expansion of your existing house. Again, the interest rates may either be floating or fixed based on the market.
Loans against home conversion:
In case you are already availing a home loan against your name and wish to shift another home, you can avail this type of loan and purchase a new house. The movement of existing loan for existing house to new house is made easier by such kind of loans. Yes, good things don’t just come alone. You might end up losing more money than you estimated.
Bridged Loan:
You heart’s set on a particular property and you have no borrower showing interest in your existing house? Well then, this variety of loan is especially made for you. You can avail bridged loan and buy the property your heart craves for and still keep the hunt for the borrower on for your existing property. Again, good things come with certain challenges. You have the loan advanced for less than 2 years and also you need to keep your new house as a mortgage.
Loan against Balance transfer:
You might be dissatisfied with the services of a particular bank and might even want to switch bank to avail facilities from the next bank. In such case, you can transfer your loan amount to the next bank you have opted.
And yes, the last type:
Loan against stamp duty:
In availing such type of loans, you can pay the stamp duty charges associated with the property purchase.
Dream of a house! Own one now!
