Different Types Of Home Loan

Introduction

In the present time with things changing at unbelievable pace even the banking sector has evolved. To meet the growing demands of the customers every bank has to come up with new schemes and ideas. So to cope up with the changes the banks proving housing loan has introduced different types of loans which targets a specific audience having unique demand. So let us see the various types of loans which are available in current scenario and has been influential in the present time and will be effective in the near future.

Types Of Home Loan

Home Purchase Loan Home Construction Loan Home Extension Loan Home Improvement Loan Residential Plot Loan Loan For NRIS

Home Purchase Loan

Home Loan is offered to individuals who wish to purchase or construct a house. The property is mortgaged to the lender as a security till the repayment of the loan.

The bank or financial institution will hold the title or deed to the property till the loan has been paid back with the interest due for it.

Home Construction Loan

A construction loan is typically a short-term loan used to pay for the cost of building a home. It may be offered for a set term (usually around a year) to allow you the time to build your home.

At the end of the construction process, when the house is done, you will need to get a new loan to pay off the construction loan – this is sometimes called the “end loan.”

Home Extension Loan

A loan given to fund your needs for expanding your existing house.

The expansion could include new rooms, aesthetic improvements, or even converting an existing balcony into an enclosed space.

Home Improvement Loan

Buying a house or even renovating an existing one can cause a big financial strain for an average middle class citizen.

Thanks to the growing popularity of home improvement loans; banks are offering users loans to take care of their home renovation work offering financial help along with tax deduction options.

Residential Plot Loan

After staying in company-provided flats in metro cities all your life, you are looking forward to shifting to your hometown after retirement. You don't mind staying in a flat but there are no projects by reputed builders where you can buy a property. You have an option, to buy a residential plot and build your own house.

While home loans are easily available for salaried employees, what about a loan to buy a residential plot? Plot loans are also available without too much difficulty and, in most cases, at the same rates as a home loan. But other terms and conditions could be different. It requires some planning.

Loan For NRIS

The Indian real estate market is attractive for non-resident Indians (NRIs) as it is easier to earn in a stronger currency and pay in Indian rupees.

Things also becomes easier as they can avail home loans from banks in India to purchase property here.

Recent trends

Industry analysts claim the top five housing finance companies account for the bulk of the retail home loans offered by mortgage lenders. “The top four or five companies will have close to 85-90 per cent share of the retail home loans offered by housing finance companies. These companies have been growing their portfolios aggressively in the last few years and are often preferred by borrowers as loan processing is relatively faster and simpler compared to public sector banks,” an analyst with a domestic brokerage said

The other prominent housing finance companies include LIC Housing Finance, Dewan Housing Finance Corporation, PNB Housing and Indiabulls Housing Finance.

Summary

All these types of loans have really made our life easier when it comes to buying a new house or making changes to the existing one. A lot of banks offer these types of loans but those which are extensively offering best deal and perfect loans are HDFC, PNB Housing, ICICI, etc. Those who wish to take any type of loan mentioned in the previous slide can approach these banks and get their loan approved instantly.