We are living in a world where a dream home is a dream of everyone. A place where one can feel safe and free of all the stresses. And undoubtedly, a home is a place where there is no fear of leaving their homes at any moment as it happens in the rental ones. It’s always said that wherever a persona wanders about the whole day…he ultimately relaxes at home. Now, what’s more, important is making sure that your promotion from your house to your home should be equally stress-free. But getting a home for oneself becomes a difficult task in this era of sky-touching pricings.
However, there is a facility of loans that are being provided by various banks on their terms and conditions or there is another option of getting loans by the non-banking financial companies (NBFCs). Such lenders don’t merely offer loans for buying a property but for several other purposes. IFL Housing Finance is one such non-banking financial company that provides numerous types of home loans to needy people.
These days, people are quite aware of the different types of loans available in the market. However, they aren’t well educated about the availability of the various forms of housing loans which gets them trapped in many more financial issues. This article might help you to exactly analyze what are the kinds of loans that are presently active especially in the category of home loans. And I think, it will surely help you to choose your housing loan pretty wisely.
Here are a few sub-divisions of the home loans:
• Purchase of a new home:
One of all, this type of home loan is the most famous. This is because; it allows an individual to buy a brand new or a second-hand home for themselves. You can also consider this kind of loan as a loan for purchasing a property. On the basis of the income and the value of the property or the plot, one can easily get the loan.
As the name suggests, home renovation loan is one such type of loan where people can get their self-occupied home renovated and give their home a new look. In the category of renovation, you can include all the required improvements in your home. For an instance, the painting, repairing and structural improvements, etc. The amount of loan that you can receive absolutely depends on the cost of the renovation and your capacity of repayment.
In case of an urgency of money due to any of the reasons then whether it be personal or professional, then you can receive the loan against property. These loans usually have the lower equated monthly installments or the EMIs. Such type of housing loan is quite easy to obtain as it is a secured loan for the lender and have lower interest rates as well. However, you should be able to repay the loan or else you might lose your property.
• Loan For Construction:
Again, as the name suggests, this type of loan is offered when you need for construction purposes. In other words, this type of loan can be further explained as when you need a loan to construct your home on a plot or a piece of land. This loan is provided after taking the market value of the property, its total cost of construction & your income into consideration.
• Home Conversion Loans
People who have already availed a home loan and have purchased a house with it but want to move to a new house can opt for home conversion loans. In this type of loan, people are able to transfer their current loan over their new house. Borrowers can fund the purchase of the new home and also need not repay the previous home loan. As it offers a convenience to the customers, henceforth this segment of home loan is also very expensive.
On this type of home loans, a customer can easily transfer his home loan from one bank to any other bank because of a variety of reasons like lower interest rates or better services offered by the other bank. This is done to repay remaining loan at revised, lower interest rates offered by the other lender.
• NRI Home Loans
This type of home loan is specifically structured for the support of non-resident Indians or the NRIs who wish of buying a residential property in India. All the formalities and application procedures for this type of loan is different from others. Generally, most of the private and public sector banks offer NRI loans as a product of their housing loan portfolio.
• Bridged Loans
These types of loans are short-term loans that are designed for existing homeowners who are planning to purchase a new property. It allows borrowers to fund the purchase of a new house until a buyer is identified for the existing property. This type of loan usually requires the mortgage of a new house with the bank and is extended for less than two years.