Kinds Of Home Loan & Their Advantages
The rising graph of price of residential flats and housings has elevated the demand for Home Loans in India. Home loans are defined as the money borrowed from a bank in order to buy or modify a residential property. Any person who desires to purchase a house can go for a home loan. When you decided to purchase a property in the prompt future you can also apply for a home loan before you decide to buy your property. The property which you are purchasing should be pre-approved by the bank. The actuality is that home loans come with many benefits like tax benefits feels like an icing on the cake. Today, we will talk about some kinds of home loans and their benefits or loss.
Land Purchase Loans
Land Purchase Loans are taken in order to purchase a portion or section of land on which a person is planning to construct their house. A number of banks offer up to 85% of the price of the land.
Home Purchase Loans
The most famous home loan available in India is the home purchase loans. These loans can be taken in order to purchase a brand new residential property or an old property from its earlier owners.
Home Construction Loans
Home Construction Loans can be taken by the ones who want to construct an individualistic house. The portion of land on which the person wishes to construct the house should have been bought within a year of application of loan. An uneven estimate of the cost for building a house should be calculated and then one should apply for the Home Construction Loan. The loan will then be inspected and then sanctioned.
Home Expansion or Extension Loans
Home Expansion or Extension Loans are beneficial for those people who want to expand their existing home. Expansion includes modifications in the present structure of the home in order to add extra area to it. Home improvement loans are generally taken for renovation purposes.
Home Conversion Loans
Home Conversion Loans are taken by the ones who already have a house with a home loan but now want to purchase and desire to shift to another house can opt for the home conversion loans. With such types of loans they can fund the purchasing process of the new house by conveying the existing loan to the new house. And there is no requirement to repay the loan on the previous home. These loans are quite expensive though as compare to others.
NRI Home Loans
NRI Home Loans are home loans entirely for the non-resident Indians. The formalities are similar as we discussed earlier for normal home loans but the paper works are a bit comprehensive.
Stamp Duty Loans
Stamp Duty Loans are offered to finish off the stamp duty charges on the buying of the property. The finance from this loan can be utilized only for this purpose. These are not very much famous.