Whenever we think of buying a house, the first thing that strikes the mind is- budget. Do I have savings? Do I have enough to repay a loan? Will I get a loan? What’s a reasonable rate of interest? So, on and so forth. It remains a persistent question and sometimes urges us to step back. But that’s instead no reason to step back! Everything, especially home loan sanctions, has become easy. Here’s why:
- Banks have lowered the rate of interest, the lowest in a decade (6.5-6.8%).
- Also, banks have come up with various schemes to make it worth it!
- Regarding application, 80% of the workings have shifted online, so it has become handy
- Also, the document requirements are essential. It can be arranged in a matter of 30 minutes.
Apart from this, there are also specific kinds of home loans, especially for farmers and women. Here are a few different types of home loans in India:
Home Purchase:
This is the most popular home loan- for buying new or pre-owned homes. The rate of interest can be variable or fixed. The best part is bank pays 80-85% of the required amount.
Home Renovation:
Did you know? Some home loans are dedicated to renovation and repairs. In a decade or so, every home needs an upgrade and new addition of features. And the bank understands.
Home Expansion:
With family enlarging, you might need to broaden your built-up area. To make this alteration bank offers a home extension loan.
Home Construction:
Not everyone prefers ready to move-in properties. Some want to build it from scratch. For this, bank has a specific loan, including the plot value.
Conversion loans:
When people with a home loan for one house want to shift to another, the bank can convert it into funds for another home.
Land Purchase:
Bank can pay up to 80-85% of the plot value for home construction.
Transfer of Loans:
You can transfer your home loan from one bank to another. This is in the case when the other bank has a lower rate of interest.
Loans for NRI:
The application formalities differ slightly from the norm, but many banks offer loans to their existing NRI customers.
While it is essential to choose the right home for yourself, it is equally important to choose the right home loan option and bank with good EMI schemes and a low rate of interest.
