With the increasing property rates in India, a Home or Housing Loan is the only means through which many individuals accomplish their goal of buying a house. To meet the borrowers’ requirements adequately, banks in India now grant various kinds of home loans.
Buying a house is now recognised as a benchmark for settling down in India. A house purchase is a dream partaken by millions of people in the country. However, the real estate industry’s ever-rising rates have significantly enhanced the requirement for home loans in India.
Mentioned below are of some of the most widespread home loan options you can consider:
- Standard Home Loan
The regular home loan is the most prevalent kind of loan people demand to fulfil their goal of buying a home. So what is a housing loan? It is a kind of loan that allows you to borrow funds from the bank for purchasing a property of your selection. Post the purchase you can pay back the loan later to the bank by monthly instalments.
If you suffice the eligibility norms for the loan and provide documents required for a home loan, the bank can lend up to 80%-90% of the value of the property as a Housing Loan.
- House Construction Loan
If you own a property and would like to construct your desired home on the same, you can take a home construction loan. Unlike a standard home loan, a house construction loan is usually paid in portions based on the development of the construction plan.
The sum authorised for a home construction loan is commonly based on the estimated construction value.
- Home Improvement or Extension Loan
One of the most prevalent forms of home loan is a home expansion or renovation loan. If you already own a home but desire to append a room or maybe a level to it, a home expansion loan can assist you. Furthermore, home remodelling or restoration loan is utilised for refurbishing an existent place.
A home expansion or renovation could require lakhs of rupees. These loans ensure that you can renovate or expand your home even if you do not presently possess enough funds.
- Home Loan Balance Transfer
If you have previously received a home loan and are paying it now, you hold the advantage to shift to another bank. Borrowers usually do this in a situation where they can receive a home loan from a distinct lender at a more economical interest rate.
However, before shifting your home loan, analyse the actual gains as the new lender may hold charges like processing expenses and more.
- Pradhan Mantri Awas Yojana (PMAY)
Under Pradhan Mantri Awas Yojana, there is a Credit-Linked Subsidy Scheme (CLSS) where first-time house owners can receive Housing Loans at reduced interest rates. This scheme can enable you to save a substantial amount on the home loan. Some added privileges like lengthened loan duration of up to 20 years are possible under this scheme. Only banks listed under the plan are qualified to administer this subsidised loan.
Apply for Housing Loan online
Now that you understand the distinct kinds of home loans, it shouldn’t be challenging for you to choose one that rightly fulfils your specifications. After determining the appropriate type of loan, you can look for a reputed bank to apply for the loan.
Leading banks in India now allow you to apply for Housing Loans online. However, It is advisable to examine the acceptability and documents required for a home loan before making an application to assure you are qualified for the loan. This will also make it more manageable to obtain approval for the loan and move closer to your desire of being a homeowner.