Do You Know About the Various Types of Home Loans in India? Check Out Now
Buying a home is one of life’s most precious dreams. While everyone dreams of having a shelter of their own, only a few lucky ones can fulfil their dreams. With a home loan by your side, you can now fulfil your dream of owning a house, whenever you wish to.
The process of home loan application is very simple. You can use a house loan calculator to get an estimate, arrange the required documents, and apply for the loan. And, with many reputed lenders vying for your attention, getting a home loan with the lowest interest rate is not a problem either.
However, when it comes to home loans, choosing the right type of loan can be challenging. This article discusses the various types of home loans that you can get from Indian lenders.
Standard Home Loan
A standard home loan is one of the most popular loan options in India. You can use the loan amount for buying a fully-constructed house, flat, or bungalow. You may also use the funds to book a property under construction. Generally, when you use a house loan calculator, the calculator displays the result based on a standard home loan.
House Construction Loan
A house construction loan can suit you more if you want to construct a house in the way you prefer to. To avail this loan, you have to show that you possess a plot of land in your name. Although there is a different loan that you may avail for purchasing land, in some cases, you can also include the cost of land in your loan application. However, you can only include the price of land in the loan application if you purchase the plot of land within one year from the date of the loan application. The loan amount will depend on the price of the land and the expected cost of house construction.
Land Purchase Loan
Quite often, people purchase land when home loan interest rates are at their lowest point. While you may purchase the land now, you may construct the house later. Alternatively, you may buy a plot of land for investment. A house loan calculator can give you an accurate estimate of the amount you will need to pay every month. In case you can afford to construct the house, it is better to get it done.
Home Expansion Loan
Also known as a home extension loan, this loan is suitable for expanding your property. You need to obtain the necessary clearance from the district administration before applying for the loan, though. You may use the loan amount for construction of a new room, floor, or beautify your property.
Home Improvement Loan
Despite being a long-term asset, a house requires frequent maintenance. It may include painting, plumbing, or electrical wiring. A home improvement loan can be the best way to arrange funds for renovating your property. The best way to utilise this loan is by using a house loan calculator and availing the loan amount you need to carry out the repairs or renovation.
Home Conversion Loan
Sometimes, after buying a property, you may realise that another house is available at a much lower price. You may apply for a home conversion loan in such a case. A home conversion loan transfers your existing liability to the new property, after selling off the existing property.
Conclusion
With so many categories, a home loan is one of the most dynamic loans that can give you funds for everything related to a house. In case you wish to get the lowest home loan interest rates, opening a house loan calculator and getting quotes may be the best way to get it.
