Purchasing a house is the biggest dream for most people and an extravagant affair overall. Moving to your dream home involves a lot of effort, and the best option is to accommodate the expense of a house into the budget through a Bank Loan.
A Home Loan covers you financially, and the best bet is to purchase a new apartment/house or any other property where you want to build your house. They are also ideal for repairs, renovations, extension to an existing home, and more.
Features
- You can get House Loans for anywhere between Rs. 2 lakh to Rs. 50 lakh depending on your eligibility, repayment capacity, and income
- They are considered secure with the need for a collateral
- The highest Loan tenure is up to 20 years
- Such Loans provide portability, parental leave facility, and so on
- For a specified time, every lender has a repayment holiday in the place
Types of Home Loans
Standard Home Loan
This is the most traditional one taken to purchase a house. Several lenders offer these from where you apply for the desired sum to buy the house of your preference. Repay them as equated monthly instalments. The lender holds the house until complete repayment gets done.
Home Construction Loan
This Loan is suitable for those who have a piece of land and need financing to build a house. The interest gets paid during the construction period. The due Loan amount gets converted into a standard mortgage. If these Loans get financed traditionally, they require a 20% down payment.
Home Extension Loan
This Loan type is applicable if you already own one and wish to extend it by adding another room or constructing another floor for the growing family. That is the primary purpose of Home Extension Loans.
Home Improvement Loan
These provide an upgrade to the existing facilities, i.e., to renovate or repair the house if there is any fault. For example, the need to paint the interior/exterior of the house, change the electrical system, or waterproof the ceiling, such as a Home Loan comes in handy.
Home Loan Balance Transfer
Suppose you find the current Home Loan interest rate overwhelming, or unhappy with the lender’s service. In that case, you can transfer the outstanding balance to a different lender who provides lower interests and comparatively better service.
So, take enough time and evaluate the pros and cons before applying for Home Loans alongside your expenses. Do thorough research about the property buying process too. Banks are there to finance your dream through Loans.
