Home Loans in India
Types of Home Loans in India
Everybody dreams of buying a perfect home where they can find peace at the end of the day. Purchasing a property is also becoming a difficult task these days owing to the increasing property rates.
A home loan is a best-suited way to back your property purchase given that it is not a great idea to spend your entire savings to buy a house.
These days there are many types of property loans are available, With increasing home loan demand, there is an increase in expectations along with it too. Not every type of home loan is suitable for all types and sections of societies.
Different Types of Home Loans in India :
- Plot or land Purchase Home Loan: Plot Buying loans are given by banks or NBFC’s (Non-Banking Financial companies (NBFCs) to purchase a land or piece of plot to construct a residential property or bungalow. Generally, banks furnish up to 65-75 % of the total price of the property.
- Loans for Buying a Home: This is the most common type of property loan is the loan for the acquisition of a brand new or a resale property. The loan interest rate could be either floating or fixed and generally varies anywhere between 9.50% to 11.50%. Also, Up to 80% of the total value is given as a loan by various banks.
- Property Construction Loan: Banks issue property loans to aspirants who want to develop a home on a land already owned by them.
- Home Loans for Property Extension: This type of loan is needed by people who would like to expand/extend their existing property.
- House Renovation Loan: A home renovation can be used for many purposes such as exterior painting or changing the interior decor of the home, plumbing/electrical repairs, new flooring, waterproofing etc. So Now, even if you don’t have adequate funds, you can still renovate your property by taking this type of loan.
- Combined Loan: A modification of Standard Housing loan also comprises an option of a consolidated loan for purchasing a land as well as a loan for building a lovely house.
- Stamp Duty Loans: Stamp duty buying loans are offered to pay the stamp duty charges during the buying of a property.
- NRI (Non-Resident of India) Home Loans: Specially devised to help NRI’s for acquiring a residential property in India, the rules and application method for this sort of home loan is distinct from the others.