Thursday, 3 January 2019

9 Important Types of Home Loans That You Should Know

Posted by MyInvestmentsPub
(Published on 03-Jan-2019)
With the home loan interest rate at a competitive segment, there are many banks and housing financing companies offering a range of features and benefits on home loans. If you are aspiring for a new home and are seeking for a home loan, it is essential to get a thorough check done through home loan eligibility calculator to avail them. This can facilitate the right fit of flexibility and affordability for your journey of getting your dream home.

Today, banks and housing financing companies offer different types of home loans which also incorporate different home loan schemes. But you need to have a thorough understanding on the one which will work best for you when it comes to types of housing loans.

Some of the Important Types of Home Loans Include:

1. Home purchase loan

Home loan is one of the most essential aspects which is ideal for home aspirants to realize their dreams. Banks and financial institutions offer competitive interest rates on your home loan. There are also a plethora of benefits for home aspirants when availing a home loan.

2. Land plus construction loan

This type of loan is primarily meant for those who want to purchase land and also build a house in the coming years. The interest rate charges in land purchase and home construction loan is more or less similar to the home loan.

3. Home Improvement Loan

A home improvement loan, also known as home renovation loan, can be availed for several purposes. These include upgrading the home by painting (either exterior or interior), electrical system, waterproofing, plumbing and many more. Ideally, a home improvement loan is suitable when there is a shortage of necessary funds to renovate the house.

4. Home Construction loan

A home construction loan is suitable if you want to build your house as per your needs. Generally, people opt for this when they are building the home of their dreams from the scratch. The disbursal of the loan amount can be done in installments, or in one scoop. This depends on the terms set by the lender. Additionally, it is important to remember that the loan amount is based on rough estimates of the cost of construction. 

5. NRI Home Loan

This type of housing loan is for the Non-Resident Indians who are seeking to invest in a property. There are a few different criteria when it comes to purchasing a property for the NRIs.

6. Home Loan Balance Transfer

There are instances when the current home loan becomes taxing due to unfavourable circumstances or also you might not be happy with the services offered by the existing bank or the finance company. In such cases, you can transfer your home loan to another lender who offers you better interest rates and services.

7. Land Purchase Loans

A land purchase loan allows you to invest in a land, which can be a valuable investment. You can opt for constructing on your invested loan as and when you want to.

8. Balance Transfer Plus Top Up

The need for financial assistance can arise at any moment. This is where top-up loans can come in quite handy. It allows you to avail an additional loan amount on top of your existing loan. Additionally, you can also reduce your EMI obligation on your existing Home Loan. Balance Transfer Plus Top Up loan can be utilized for any personal or business needs.

9. Top up Home Loan

A Top-up loan is a financial assistance provided by banks or housing finance companies above the existing home loan so as to fulfil your requirements. Top-up loans are ideal when it comes to fulfilling all your emergency needs.

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