Home loans remain a crucial financial instrument to any group of people that wishes to acquire a home. Home loans in India are offered in various forms depending on the needs that the customers have as follows. Thus, it is important in this case to learn the basic rules of obtaining the mentioned types of home loans as well as the requirements for borrowers.
Types of Home Loans in India:
Housing loans in India are of several types namely:
- Home Purchase Loan: This is the popular home loan that is taken for buying a new house or a flat in an undertaken building or construction. It usually ranges from 80-90 percent of the property value of the loan type.
- Home Construction Loan: If you own a plot of land and would like to build a house on it, home construction loan will come in handy to finance this need. Typically, the funds of this loan are released incrementally depending on the construction’s phase.
- Home Improvement Loan: If one is in a situation where you want to expand, overhaul, renovate or make any improvements on the existing home, then you should take a home improvement loan. These loans include expenses that pertain to repair, remodeling or improvement.
- Home Extension Loan: This type of loan is made to those individuals who are homeowners and who require additional space in the same house, as you may need a new area, floors or more rooms in house.
- Land Purchase Loan: This particular loan is meant for purchase of the land on which one intends to build residential house. It is useful for those who expect to construct personal houses in the future.
- Balance Transfer Home Loan: It is possible to transfer a home loan to a different bank if the original loan comes with a relatively high interest rate. This, in turn, helps in cutting down the EMI burden.
- NRI Home Loan: Design particularly for use by Non-Resident Indians who want to purchase residential property in India. The requirements for qualifying for the home loans as well as the documents needed for the process might slightly differ from that of a traditional home loan.
Eligibility Criteria for Home Loans in India:
It is pertinent here to know the criteria to avail home loans in India. Age: About the applicant, he should be at least 18-21 years old at the time of filing the loan request,