Things to Know about the Types of Home Loans Available in India
In India, the home loans are applied for buying flats or landed properties; purchasing a plot of land for building a home or remodeling your existing property. Even home addition projects are financed by mortgage loans. There are different alternatives available to the buyers. They may choose one based on their requirements. The nationalised and private banks, as well as the housing finance companies, offer loans. Given the slowdown originating from demonitisation, the home finance companies have reduced the interest rate on home loans. Thus, our discussion on home loan types would help you choose the perfect option at the most convenient rate.
Types of Home Loans:-
- Home Purchase Loans: Mostly, every bank and housing finance companies offer home purchase loans with the help of which buyers can get the ownership of a new or an old home from the previous owner.
2. Home Construction Loans: Suppose you have bought a piece of land and want to build a home on it. Here, the home construction loan will finance the cost of building. There are some interesting twists like if you have bought the plot within a year of submitting the application for the home construction loan, the price of the plot will also come within the total cost valuation of the property. Otherwise, this rule will not be applicable.
3. Home Extension Loans: For extending your existing home or adding rooms to it, you may apply for home extension loans.
4. Home Conversion Loans: These types of home loans are pointing towards the changing purchasing trends in India. Gone are the days when people would invest money in a single property and spend their entire life there. Nowadays, it is possible that even if you have taken a home loan and purchased an apartment and later on decided to buy another abode and move in there. The existing home loan would be transferred to finance the new property. You even do not have to make a pre-payment of the existing home loan. The extra amount will just be added to the existing home loan figure and you will have to pay more in the way of monthly installments.
5. Land Purchase Loans: If you want to purchase a land for the purpose of building a residential property or just for making an investment, you can apply for land purchase loans.
6. Stamp Duty Loans: Even the stamp duty amount could be financed by third-party financiers. Thanks to the stamp duty loans.
7. Bridge Loans: Earlier, until you would find a suitable buyer for your existing home, it would become very difficult to purchase a new apartment. No more such sad stories. The bridge loans do finance the new properties until you get a good sale deal for your old property.
8. Balance-Transfer Loans: If you want to transfer your home loan from your existing bank to another bank, you could apply for the balance-transfer loans. The balance amount will be transferred for, at a higher rate of interest.
9. NRI Home Loans: For the ease of buying properties in India, the NRIs can apply for specific NRI home loans.
So many options are there that people would be spoilt for choices. Many developers of new residential projects in Kolkata and rest of other parts of India have made available this information with their help desks. PDF documents are also available on the real estate websites. So, regarding any information, you could contact them at any moment.