With the demand for homes and the increasing demand for real estate prices in India, a home loan is the only option to crack the deal for your dream house. To fulfill the demands of the lenders and the borrowers, Indian banks have offered different types of home loans.
A loan to buy a home is essential if you are considering settling down in India. Purchasing a home is a dream for many who plan to settle down in their land. However, the increasing price of real estate makes it harder for people. Therefore, here we will guide you about the types of house loans available in India and how you can avail of them to fulfill your dream.
A Basic Home Loan
A standard home loan is the most specific category of home loan, which is essential for settling down in India. Here, you can borrow money from a lender to purchase a property you choose. You will also get time to repay the loan to the lender in monthly installments. If you have a good record and can fulfill the requirements, the lender can provide you with around 80-90% of the actual price of the property.
House Construction Loan
You can consider a construction loan if you own a piece of land. Unlike the primary home loan, where a considerable amount is disbursed at a time, a home construction loan is paid in small installments. It depends on the progress of the project. The approved amount for the home construction loan depends on the approximate construction cost.
Home Improvement Loan
One of the most significant types of house loan is the home extension or home improvement loan. This type of loan can help you if you want to make some improvements, remodify your house, or something similar. Home constructions or extensions can easily sum to around a lakh or more rupees. And if you do not have enough savings in your account, an improvement loan can help you.
Home Loan Balance Transfer
If you already have a home loan and are repaying it now, you can transfer it to a different lender. You can use this method when getting lower interest rates from a different lender. But, consider the actual savings before transferring a home loan because the processing fee might be higher.
Conclusion
Now that you know about the different home loans you can consider for other purposes, you can select the loan that suits your house construction requirements. Apart from these four major types of home loans, there is also a Pradhan Mantri Awas Yojana, a government loan for building homes.
This loan is available at subsidized interest rates. Therefore, if you plan to build your dream house according to your needs, you can consider a loan if you don’t have enough money to build the house. With increased rates of products and higher property prices, acquiring a loan has become very crucial for individuals.
