Posted on 05th January 2019 Author: Planet Homes
The basic human needs are - Food, Clothing and Shelter. To own a shelter of your own is an almost next to impossible task. With the sky touching prices of houses, it becomes increasingly difficult to fulfil this dream and here is where banks come to your recue in the form of home loans.
Banks and financial institutes offer 5 different kinds of home loans depending on your needs, income levels and structure. Read on to find out more about these loans.
This is the most common home loan available to all buyers wanting to purchase a new home. This loan is useful only if one is buying a residential property. It usually covers up to 85% of the amount of the market value. The interest rates are usually fixed, floating or hybrid.
2. House Construction Loan
This loan is offered by banks to individuals to build houses on the land owned or co-owned by them. The procedure of such kinds of loan is quite elaborate and exhaustive than other loans. The applicant has to primarily provide an estimated amount for the construction of the house. There are some additional particulars about such kind of loans as follows:
3. Home Improvement Loan
An individual can apply for home improvement loan, which includes the facilities to repair and maintain the house. It gives you allowance for repair work, painting work, for both internal and external structures, plumbing work, electrical work, waterproofing the property and even for construction of overhead tanks and underground tanks.
4. House Extension Loan
Certain banks also offer loans to applicants for the extension of their current home. It includes the addition of extra bedrooms, living rooms, bigger bathrooms or new flooring or some space for the balcony. This home loan in short, provides assistance in altering the structures of the homes.
5. NRI Home Loans
NRI-home loans are specialized home loans that assist Non-Resident Indians who are interested in buying residential property in India. Though the structure of this home loan variant is similar to the regular home loans, the paperwork is a bit more exhaustive.
With the availability of home loans, one can now be at ease and peace to own a residential property of their choice.