We’ve all heard about the three basic needs for any person, namely, food, clothing, and shelter. Every person, in one or the other way; strives to buy his/her home(s). However, in recent years buying a home can be a very difficult task, especially due to finances. But that is where home loans come to your aid. In India, there are 7 different types of home loans; of which in our present write-up we would like to introduce 4.
In case you’re looking for a loan to purchase a piece of land which is to be used to build a property, you’ll need a land purchase loan. This type of home loan may be provided on investment or residential purposes. In fact, banks are habitual of providing 85% of the property value, in the form of a loan when you’re purchasing land.
This type of loan is specially designed to aid the Non-Resident Indians (NRIs) who are interested in buying residential properties in India. The legalities and application procedures are catered to the needs of the NRIs. Here, it’s notable that a maximum number of private and public sector banks provide the NRI loans as a result of their home loan portfolio.
Loans for construction of a house is provided to those who are interested in having their houses built from the scratch. The loan takes into account the size of the plot on which the construction is to be made. Another important clause in this loan is that the plot has to be purchased a year before so that the cost of the plot of land purchased to be included in the loan amount. Based on a rough estimate of how much your construction will cost, the loan amount is decided. The amount may either be disbursed in instalment or at one go.
If you’re planning to buy a house, a home purchase loan is perfect for you. Most financial institutions, like in case of Land Purchase Loan; usually provide a loan that covers 80-85% of the total cost of the market value. Home purchase loan interest rates vary between fixed, floating or even, hybrid.
Other types of home loans depend on what you intend to do with the loan amount. The proper financing option is absolutely necessary when it comes to buying or renovating your home. If you’re having a hard time to decide, at Wealth Clinic; we have an excellent team of consultants to help you out. Contact us now!