Many believe that buying a home is a just pipe dream unless you have deep pockets. A misconception! Fortunately, there are easy home funding schemes now available in India. Lenders extend financial assistance not only for buying houses but for a number of other home-related needs. If you are facing a cash crunch, consider taking out a home loan. Read on for the different types of Home Finance products out there.
Nothing can be more heart-breaking than falling in love with a property only to discover it is unaffordable. Do not worry! Despite the escalating real estate prices chances of snagging a dream property is within reach thanks to numerous home funding strategies. Banks (national or private), housing finance companies and reputed financial establishments in India offer various schemes to help fulfill your aspirations of acquiring a home. Let’s sift through some of the popular Home Loan options to figure out which one’s right suited to your specific requirement.
- Loan for Purchasing a Home:
If you want to purchase a new residential property or an old one, financial assistance can be availed for the same. Lenders usually provide up to 85 percent of the market value of the house on fixed, floating or hybrid interest rate. This is perhaps the most widespread loan variant utilized by Indians.
- Home Improvement Loan:
This is another popular form of funding. As the name suggests, this is Home Finance taken for renovation or carrying out internal/external repairs of your existing abode. It could be for anything like painting (inside and outer façade) or erecting an overhead water tank, replacing faulty electrical wiring, water-proofing, installation of grills and more.
- Home Construction Loan:
Don’t fancy buying a ready-to-move-in flat and want to build a home as per your wishes on a plot of land you own? You can avail a construction loan. It must be noted that the application and approval of a construction loan are slightly different and not all lenders provide funding for self-constructed homes. So turn for monetary assistance from those that are active in this segment.
- Home Extension/Expansion Loan:
The objective of this loan is to extend or expand the current home in order to swell the living space. This could entail some alterations like adding an extra room, another floor, making a bathroom or building a balcony. Some banks and lenders tend to club extension funding with home improvement schemes.
- Home Conversion Loan:
You have borrowed money already for your current home but now want to buy and shift to another one? There is provision for this aspect too. Take out a home conversion loan which enables you to transfer the previous loan to fund the new purchase. Naturally, you do not have to pay the earlier amount. It’s important to remember that though home conversion loans are useful, they are a tad expensive.
As you can see, there are various kinds of home loans available on the market to serve diverse purposes. Having a good understanding of the options on hand can help you make the right decision and choose a finance program that best fits your requirements.