Different types of Home Loan
Category : Home Loans
Home loans are an appealing and preferred approach of shopping a dream apartment for most folks. In India, the demand for home loans has expanded manifold in the last decade. Day-to-day numerous people observe for home loans to own a perfect homestead for themselves. The fact that home loans include brought advantages (like tax benefits) is the icing on the cake.
The following are some general forms of home loans available in the Indian housing finance market:
Land Purchase Loans
Land purchase loans are taken to buy a plot of land on which a borrower desires to assemble his residence. Most banks offer as much as 85 percentage of the price of the land. These loans will also be availed for residential as well as for funding purposes. Nearly all main banks present this loan like ICICI financial institution (Land loan), Axis bank (loan for land purchase) and many others.
Home purchase Loans
The home purchase loans are probably the most preferred and probably the most normally on hand home loan variants. These loans can be utilized to finance the acquisition of a new residential property or an historical condominium from its prior owners. In this type of loan also, lenders usually finance up to 85 percent of the market value of the house. These loans are offered either on fixed interest rate or floating interest rates or as hybrid loans.
Home Construction Loans
These loans may also be availed with the aid of these contributors who need to assemble a residence in line with their needs instead than buying an already constructed one. The loan application and approval procedure for home constructions loans are reasonably different from these of the traditionally on hand housing loans. The plot of land on which the borrower wishes to construct the house should have been bought within a year for the cost of the land to be included as a component for calculating the total price of the house. If the plot has been purchased more than a 12 months in the past, then the above clause is just not applicable. The borrower has to make a tough estimate of the rate to be able to be incurred for the construction of the condominium after which apply for the mortgage with the equal quantity. The lender then takes over from their and analyses the appliance to decide whether or not or not to sanction the loan. The approval or disapproval of the equal is intimated via the lender to the applicant. The loan amount is also disbursed at one go or in a couple of installments according to the growth in the construction of the house. Banks like Canara financial institution, UCO financial institution, bank of Baroda provide these loans.