A house is a very basic necessity for everyone. To get the house of your dreams, you will have only a few options, either you rent a house or you build a house or you buy one. Everyone dreams of building a house. Some of them buy with the savings or some just opt for a home loan in our country. In a nation like India where the population is constantly increasing, having a house has become more difficult to acquire for the maximum percentage of population
With a home loan, you get closer to owning a house. Home loan opens a door for low-class and middle-class population to have their own houses. There is no doubt that properties have become expensive in the last 5 years. Investing in a land is always an intelligent move. The value of land always goes up and monetary value of your possession always increases. However, owning a home for financially weaker areas of the general public is a trouble until an individual chooses to cite for a home loan depending upon their necessity and requirement. Person’s credibility and income become play deducing factors, whether he /she will get a home loan or not.
Here are different types of home loans available for those who are looking for a new home or building a house.
Different Types of Home Loans are available in India
Land/Plot Purchase Loan:
Through plot Loans you can build your dream house on a land you desire!
As the name itself tells you, land purchase loans are provided to buy lands or plots. These loans are provided to everyone for either residential or housing and investment purpose. The banks offer up to 85% of the property value as loan while buying a land or plot Irrespective of how many houses or lands, if you have a stable income to repay and good credibility, you can apply for these kinds of loans.
House Construction Loan:
Some home-loans are offered to build the house according to you wish rather than buying a fully constructed home. This method, in which home construction loans are taken, is somehow different from that of the usual loans provided for any other housing purpose. Applicant s applying for home-construction loans might have some advantage with some knowledge of the estimated cost while applying for a loan accordingly. These kinds of loans are easy to get once the borrower offers the necessary documents to support his claim.
House Purchase Loan:
One of the easiest available loans in home loan sector is home purchase loans. These are taken when an individual buyer buys a property from a different owner. It is also essential to take sufficient care in buying assets from other owners. The home loans are given on both floating and fixed interests and even hybrid loans. Hybrid loans, which include both the interests combined in a perfect way. Almost all the banks offer home purchase loans. Compared to house construction loans, this loan comprises an elaborated process.
House Improvement Loan or House Extension/Expansion Loan :
House improvement loans are usually acquired when a property needs to be repaired or renovated. The kind of expenditures that are taken care by this loan includes repair works, painting works, plumbing works, electrical work, waterproofing the property and even when constructing tanks. There is also another category to this which is expansion or extension loans for houses; these are given when people tend to expand their current house. It includes the addition of extra bedrooms, living rooms, bigger bathrooms or new flooring or some space for a balcony. It is nothing but the alteration of the house.
Bridged Loan:
These loans are called short term loans which are taken by the owner of a residential property. With a newly purchased land, Bridge loans help people to cover the gap between an old and new home. These types of loans are given for two years and less. It requires finance documents of the new property. Along with these types of loans there are loans that are provided to such people who wish to move into another home with the existing loan. If in case the person wants to move to a new place, they have an option by paying some extra money on the previous loan.
Top up loan on home loans :
Under home loan top up, a person can get some money well beyond their home loan amount. The client who as of now have a home loan from the same budget foundation and requires some more fund, can get Home Top up loan. It can be benefited for any individual cause.
If you are not being able to buy a house or build a house with your savings, then opt for any Home Loans according to your needs. Home loans take your Dream of owning a house, a step further. Applicants for home loan can also avail tax benefit. Under Section 80CCE of the Income Tax Act, 1961 repayment of principal up to Rs 150,000 on home loan is subject to tax deduction. It becomes more profitable to make use of every opportunity possible to convert your savings into investments. Well, now all the details are up above, Hope your troubles are all vanished and you are worry-free