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If you are planning to buy home, you need
to know about home loans processes, troubleshooting
and how to choose the right home loan for house that falls
within your budget. There are various types of home loans
offered by different financial institutions. You need to figure
out which type of home loan is beneficial for you.
Types of Home Loans Available:
- Home Equity
Loans
- Home Extension
Loans
- Home Improvement
Loans
- Home Purchase
Loans
- Land Purchase
Loans
- Mortgage Loans
Many banks and financial companies offer home loans. But
before choosing any home loan option, consider few points
as mentioned below.
Property Types: You should know more about
type of property in lieu of which you seek loan. There are
loans offered by banks to Resident Indians and NRIs for ready
property, under construction property, self-construction and
home improvement.
Loan Tenure: The loans provided by financial
institution are offered in tenures or period of years. You
should check out the tenure for loans available in the market.
There are loan tenures available for upto 25 years.
Repayment Options - You need to choose between
fixed and floating rate home loans. Many banks and financial
institutions will provide you with the option of switching
from a floating rate home loan to a fixed rate home loan once
a year at no extra cost. But you need to check out the facts
first with the loan providing firm.
No Penalty option - There are also no penalty
option offered by few finance companies. In this mode, you
can opt to pre-pay up to 25% of your loan every year. Pre-payment
is permitted after a minimum of 6 months following loan disbursal.
Tax Benefits - You should know the right
of your tax benefits on home loans. Resident Indians are eligible
for certain tax benefits on principal and interest components
of a housing loan under the Income Tax Act, 1961.##
List of Premium Banks Offering Home
Loans:
- ICICI
Bank - ICICI Bank Home Loan
- HDFC Bank
- Adjustable Rate Home Loan
- Bank
of India - Star Home Scheme
- Standard
Chartered - HomeAssist
- State
Bank of India - SBI Unique Housing Scheme
- Bank of Baroda
- Housing Offer
- Citibank- Building
& Renovation of House
Always check with a financial home loan expert or financing
company to understand home loan processes and to avail the
best bargain on your home purchase.
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