Having an own house is like having all the security in the world and most importantly peace of mind. However, due to growing property rates in our country, it becomes difficult to single handedly purchase a house with just the regular savings. Unless and until you avail a home loan, it’s almost next to impossible. With the right kind of a home loan, you can not just have your own dream house but do not have to fall under the burdens of traditional finances. Money is no longer a barrier when it comes to buying affordable properties in India. All thanks to the growing housing finance companies and lending bodies, all types of loans can be now availed with low interest rates by people belonging to all income groups. Government banks have been in the market for ages as a reliable loan availing source. Recently, there has been a noticeable growth in the number of banks and finance companies offering housing loans. Home loans are offered under a variety of categories which include:
Home purchase loans: These are the types of loans that are availed to purchase a new house/property/plot.
Home extension loans: These can be availed for extension or expansion of an existing house.
Home improvement loans: People who wish to implement repair work and renovation of their existing house can apply for a home improvement loan.
Home construction loans: Government as well as non-government banks offer these type of loans for constructing a new house.
Bridge loans: People who want to sell their existing house and buy a new one, but are running short of money for the same can avail a bridge loan to bridge the gap of the remaining capital.
Home conversion loans: People who have already availed a home loan to purchase a home but wish to shuffle to some other loan and require additional capital for the same can opt for this loan type. The existing Home Loan India gets transferred to the new home along with the additional amount needed.
Balance transfer loans: In case you feel that your bank is charging too high rate of interest at any point of time, you can transfer the remaining EMIs to another bank where they charge less rate of interest.
Land purchase loans: As the name suggests, this loan can be used to purchase a brand new property/plot. The property can be later used for residential, commercial or industrial purpose.
Refinance loans: Refinance loans are helpful in paying any debt that you would have taken from your family, friends or relatives to purchase a house.
Stamp duty loans: A stamp duty is essential to avail a loan and these types of loans help to pay for the stamp duty charges.
In our country home loan interest rates are offered based under two types: fixed or floating way. In a fixed rate of interest, the interest paid throughout the tenure remains same, while in a floating interest rate scheme, the ROI fluctuates as per market dynamics. So in this case, the borrower may get to enjoy low interest rates and at times may have to pay higher interest rates as compared to the competitive ROI offered by lenders as a result of a floating interest rate scheme.