As Indians, we take great comfort in owning a house of our own. As soon as we start earning, it enters our bucket list. With the property prices being volatile in this economy, most potential home-buyers prefer to take a home loan to realise their dream of living in a house they can call their own. However, with so many types of loans available it may be confusing for a home buyer looking for a loan to identify which loan suits them the best. Here is a list of the popular home loans that you can avail of in India:
Loan for a new house
The home purchase is the loan to opt for when you want to buy an under construction, already constructed house. You can also use this loan to purchase a house from another home owner. Usually, financial institutes provided 80% of the financing for the home. Depending on the bank and your requirements, you can choose one of the three rates of interest, i.e., fixed, floating, or hybrid. Please note, it is one of the most popular home loans in India.
Loan for home extension
If you are planning to welcome a new baby into the family or need a balcony where you can unwind with a cup of tea in the evening hours post work, then this is the best loan for you. Any expansion in the house be it the expansion of a balcony to constructing a whole new floor, this loan caters to all your needs. An estimated 70-80% of the amount of finances needed can be provided as a loan. The rate of interest is either fixed or floating.
Home improvement loan
If you too are troubled by monsoon wreaking havoc on your walls and ceiling every year, or if you need to install grills on all the windows to assure safety for your toddler, then you can opt for a home improvement or home renovation loan to meet your financial needs. It is important to note that this loan is different from the home extension loan mentioned above. You must get in touch with a financial institute executive to understand which of the two loans you should be opting for and based on the feedback you can apply for one.
Loan for buying a plot and house construction
If you think that you know how to best plan your home and want to construct it from scratch along with buying the plot of your choice in a location of your choice, then this loan is for you. See your dream house being built right from its foundation to its ceiling with financing from the financial institute. You may also choose a loan for solely constructing the house on a property that you already own.
Before you apply for a loan ensure that you have all the valid documents, have done your market research, and improved your credit history. Once everything is in place, take the next step towards fulfilling your dream.