A housing loan is a type of secured loan provided by banks and non-banking financial institutions in India. It is the best alternative to manage your finances without using your savings or investments. Both salaried employees of organizations and self-employed individuals can apply for a housing loan. There are several types of housing loans in India like home construction, home renovating, home extension, etc.
The home loan amount depends on the value of the property. You may secure up to 80% of the property’s value as a loan. Compared to other loans, home loans offer the lowest interest rate based on factors, such as age, income, credit score, etc. However, it is advisable to use a house loan EMI calculator to determine your affordability.
Here are the top housing loans in India:
- Home purchase loans
It enables you to buy a new home or an old home from its previous owner. All banks and non-banking financial companies in India offer home purchase loans. You can secure up to 75% of your home’s value as a loan. The process of applying for a loan is simple. You can fill in your application online and submit the relevant documents.
- Home construction loans
This is a type of housing loan that allows you to construct your house on a piece of land that you have already purchased. To determine the total cost of the property, the total cost of the plot on which you are constructing your house plays a vital role.
- Home extension loan
As the name suggests, it enables you to renovate or expand your existing house. For instance, if you wish to construct an extra room or floor, you can apply for a home extension loan to meet your requirements. It is easy to get. You will need to submit the required documents to your lender.
- Home conversion loan
It is a type of housing loan that enables you to convert your current house that you have taken with a loan to another house. Through home conversion loans, you can transfer your existing loan to a new home. You do not need to pay any prepayment of the previous loan.
- Land purchase loan
A land purchase loan is a type of housing loan that allows you to purchase land for the construction of both residential and commercial purposes. It is specific to buying lands.
- Stamp duty loan
When you want to transfer your property to another person’s name, the cost can put a financial burden on your shoulders. You can take a stamp duty loan to cover the cost of the transfer.
- Bridge loan
If you wish to sell your current home and buy a new home, you can apply for a bridge loan. It enables the borrower to secure a loan to purchase a new home until a buyer is found for the old home.
- Balance-transfer loan
It is a type of housing loan that allows you to transfer your existing loan from one bank to another. If you are currently paying a high interest rate, you can transfer your loan to a low-interest rate loan. It helps you to pay the remaining loan amount at a lower interest rate.
- NRI home loan
This type of housing loan allows NRIs to invest in India by buying properties. It is designed to meet the requirements of NRIs. You will need to meet your lender’s eligibility criteria and submit the documents required.
So, getting a housing loan or home improvement loans in India is simple and convenient. You can secure the highest loan amount against your property’s value. However, you must use a housing loan EMI calculator to determine how much you can afford to pay in EMIs. This way, you can manage your budget well and make repayments without any delay.