If you aren’t aware about types of home loans, read on…
The foundation of your choice of a dream home is your budget. Most of the times, support of a home loan is a must. In this case you should be aware and informed about main types of home loans available in India. Here they are.
Home Purchase Loan
To buy your dream home or a residential property of your choice, you have to apply for Home Purchase Loan one of the popular types of home loans. Banks and financial institution help you achieve your target. You can choose from three types of interest rates- fixed, floating or hybrid.
Land Purchase Loan
Banks of financial companies give land purchase loans to buy a plot or land for constructing a house. Land purchase loan is approximately 80- 85% of the price of the land. If your income and credibility are sound, you can purchase as many plots as you choose.
Home Construction Loan
When you want to build your home on the land owned or co-owned by you, Home Construction Loan comes handy. The application and approval process of this loan differs from regular housing loan. Knowing the estimated cost of the entire building process helps.
Home Extension Loan
The purpose of Home Extension Loan is to provide financial assistance to those who want to extend or expand their existing home- bigger bedroom, building more rooms, expanding bathrooms and so on. This is also given as a part of Home Improvement Loans which are given for renovation such as new flooring, electricity works etc.
NRI Home Loans
These loans are specially designed for Non Resident Indians. This type of home loan requires extensive paperwork.
Home Loan Balance Transfer
If you are unsatisfied about the interest rate or service of the current bank of finance company, you can opt for Home Loan Balance Transfer. The lower interest rates make a big difference. You can also avail of Top-up Loan to cover extra expenses.
Composite Loan
This is a combined loan- a loan for buying a plot along with a loan for building your dream home. Today the loan processes and formalities are so customer friendly that you can transform your dream into reality in no time! So go for it!