In India, there’s increased demand for taking home loans. Every individual wants to settle down in their own house with family. With skyrocketing prices of real estate properties, buying homes becomes a strenuous job! However, spending all your savings on having one asset is not a wise idea at all. Financial experts advise financing your home with a suitable home loan to cater to your needs in the best possible way.
Considering the unbelievable demand for housing loans, financial institutions have come up with several types of home loans. Since every individual has distinctive demand for purchasing a home, thus the emergence of several types of loan programs is becoming very useful to fulfill their special requirements.
Different Forms of Home Loans
There are several reasons for availing of home credits. Look at some of the types of home loans you can acquire from the available banks.
Land Acquisition Loan
You can come by multiple lenders that offer credits for purchasing lands. People prefer purchasing land since they can use it for versatile purposes. The buyer invests and keeps it as an asset to buy in the future. Otherwise, use the land to build a house as per the available resources. Research the available lenders in the market that provide their clients with land acquisition credit.
Loan for Home Construction
This specially designed loan is the best option for those who use the credit in constructing a home that has already been constructed. The applicant must undergo a different approval process to get this loan.
The main criteria of this loan application are that the borrower must buy the property within one year to include the plot cost. You have to consider the building cost preliminarily to calculate the loan size. The lender either disburses the funds at once or through installments.
Loans for Buying Home
It is the most common type of home loan available in the Indian market. People gather funds through this long-term credit from financial institutions to purchase a new or pre-occupied home. The borrower can opt for a fixed or floating interest rate at his/her convenience.
Loan for Home Renovation
Besides purchasing a new home, there’s rising demand for home renovation among borrowers. From water tank creation, house painting, changing home furnishings, internal and external portion repair, to electrical renovations – this particular loan is used in modifying the overall look of your home. Most people don’t possess enough funds in their bank accounts for property renovation. They can easily take help from this home improvement loan.
Balance Transfer Home Loan
Some situation arises when an applicant wishes to transfer his housing loan from one bank to another. This might be for availing of better facilities like lower interest rates or getting improved services from the lender. When the borrower is unsatisfied with the current lender or unable to
repay his outstanding, this home loan comes as a savior. With renowned financing sources like SBI home loan, financing seems easier.
Final verdict
As a home loan helps the borrowers simplify the home-buying process, it is mandatory to identify the right lender according to your unique needs. With the home loan calculator, you will get to know the ideal loan type and considerably reduce the overwhelming documentation.
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