Skip to main content

What are the Different Types of Home Loans?


There are numerous home loan options available in the market by non-banking financial companies and national or private banks in India. To know which one will better suit your needs, it is imperative to understand each of the choices available:

Home-purchase Loan

A home-purchase loan is taken to procure a residential property: flat, house or bungalow. The financial institutions generally offer up to 80-85% of the market value of the house as a loan amount. The interest rate on such type of loan is either fixed, floating or hybrid.

Home-construction Loan

A home-construction loan is taken to cover the expenses relating to construction of a new house on a plot owned or co-owned by them. The home-construction loans application and approval process are different in certain aspects than from the easily available housing loans. This includes:
The concerned land or plot should have been purchased within a year
If the cost of the plot is not included in the loan amount, then just the estimation for construction of the house is taken into thought.

Home-extension Loan

A home-extension loan is taken to build extra rooms or extend home by both; current and new customers. Few banks distinguish this loan based on the idea of expansion of the existing house. Majority of them consider this type of loan as part of their home-improvement loans.

Home-improvement Loan

A home-improvement loan is taken by individuals who own a house but lack funds to either renovate the current home in certain ways such as internal and external plaster, waterproofing, tiling and flooring, painting, etc.

Home loan for NRI/PIO

A home loan for NRI/PIO is taken to aid the NRIs interested in buying the residential property in India. The process of this home loan is almost similar to the regular ones, only the paperwork is a bit more exhaustive.

IndiakaLoan.com provides the opportunity to compare various home loans from private/public sector banks. Moreover, the loan parameters are helpful in receiving free quotes instantly.

Comments

Post a Comment

Popular posts from this blog

What are the Benefits of Working Capital Loan?

There cannot be a semblance of doubt in the fact that working capital loan prove to be very helpful for the entrepreneurs and help them bailout of the financial hot waters.  Some of the important benefits ofworking capital loan are: ·          No Collaterals Required Anyone with good credit history can apply for unsecured working capital loans where in they can avail loan without pledging any collateral. However, one must be very careful with the repayments and make sure that there is no default. ·          Easy & Flexible Working capital loans can be availed conveniently and without any hassles. The loan normally comes w ith different repayment terms and interest rates. These assist the applicants in working out their cash flow.     ·          No Restrictions Imposed In most of the cases working capital loan has very little o...
Post a Comment
Read more

Avail Loan Against Property At Lowest Interest Rates

In loan against property , the loan is given in lieu of the market value of the mortgaged property (normally the amount given is 60-70% of property estimate). Though the property remains mortgaged to the bank, the owner is allowed to utilize it for private or business requirements.   Loan against property is a better option when compared with alternatives like personal loan because the rate of interest is far less in its case. Loan against property is very popular in India and is easily available with the increase in the number of banks and NBFCs in the country.                      Loan Against Property Eligibility Both salaried and businessmen can avail loan against property. The loan against property eligibility criteria are:   ·          The applicant must be an Indian citizen. ·          The a...
Post a Comment
Read more

Important Eligibility Criteria for MSME Loans

There can be no denying the fact that one has to fulfill certain eligibility criteria for availing MSME loans. Some of the important MSME Loan eligibility criteria that one must fulfill for being eligible for availing MSME loans are discussed below. A comprehensive business plan: One of the prominent criteria for availing MSME loans for any new business.  A registered business: It is a must whether you are an experienced entrepreneur or someone who has just joined the market. Registration of the business is an absolute must for qualifying for any government plan or for any MSME business loan . Profit and loss statement: For existing businesses, it is important as these are clear pointers towards the fact that how well the business is managed before the funds can be disbursed. Previous year’s ITR: These are important documents for they reveal your taxes. Lenders go through them carefully to see if the applicant has paid all his taxes. Good credit history: This sho...
Post a Comment
Read more