“Owning a home is a keystone of wealth – both financial affluence and emotional security”, aptly says Personal Finance Expert, Suze Orman. However, soaring real estate prices have made it tough to buy one in India. That’s where a home loancan provide you with the essential financial assistance to build or maintain the home of your dreams.
Different home loan types
But, before applying for a loan, do ask yourself this question – Which home loan will be best for me? To meet the specific requirements of a variety of individuals, financial institutions offer a host of different options. Therefore, it helps to stay informed about the various plans so that you can choose the best alternative that aligns with your exact needs.
So, let’s take a look at some types of home loans in India.
Standard home purchase loan
This basic home loan is one of the most prevalent kinds of home loans in India used for buying a pre-approved or new home, residential property – bungalow, townhouse, apartment, flat, etc. It is a fairly common home loan option with floating, fixed or hybrid interest rates levied on it. Financial institutions can sanction up to 80 – 90% of the current monetary value of the property as the loan amount.
Home extension loan
If you feel the need to add space to your existing residence, a home extension loan is perfect. You can avail of this option to build some new rooms, add another floor or simply want to expand your home according to your necessities.
Additional Read: Top Things to Know about Home Extension Loan from Tata Capital
Land purchase loan
This is one of the most widely used types of home loans. As its name implies, a land purchase loan helps you to buy a piece of land or a plot on which you can construct later as per your wish. You can also simply keep the land as an investment. Usually, lenders can approve up to 80 – 85% of the market value of the land or plot as the loan amount.
Home construction loan
This type of loan is designed to provide funds for those who own or co-own a plot of land and want to construct a house on it. The application and approval procedure for such a home loan is dissimilar to other options as it includes the cost of the plot. Also, the plot should have been purchased within a year. If you meet the home loan eligibility, then the loan amount may be disbursed in several instalments or all at once. You may also consider this option to complete the construction of a partially-built home.
Additional Read: Home Loan vs. Home Construction Loan
Balance transfer home loan
You may be having an existing home loan and unhappy with its home loan interest rates or lender’s services. Thankfully, you can always switch from one lender to another through a balance transfer option.
Searching for the best home loan provider? Your search ends here as Tata Capital’s bespoke home loan offerings are perfect for all your home-related needs. With attractive interest rates and home loan tenures up to 30 years, you can also choose the loan amount and home loan EMIperiod as per your convenience.
Our industry-standard services will provide you with a seamless experience to meet your requirements without any hassle.