Owning a piece of land or property is a lifetime dream for every individual. There are many home loans provider in the market to make your dream come true. But before you opt for any home loan provider, you need to consider certain factors related to property that you are interested in buying and also about the salient features offered by a home loan provider and also study some Home Loans and Home Insurance FAQs which helps in applying a Home Loan in India.
And the most important thing is you should know about each and every term related with Home Loans before applying for a Loan. It is always advisable to consult a home loan expert or consultant before applying for a home loan or purchasing a property.
You can take different types of home loans like Bridge Loans, Home construction Loans, Home Equity Loans, Home Extension Loans, Home Improvement Loans, Land Purchase Loans etc for different schemes available in the market. There are different types of home loans tailored to meet your needs.
- Home Purchase Loans: These are the basic forms of home loans used for purchasing of a new home.
- Home Improvement Loans: These loans are given for implementing repair works, healing and renovations in a home that has already been purchased.
- Home Construction Loans: These loans are available for the construction of a new home.
- Home Extension Loans: These loans are given for expanding or extending an existing home. For eg: addition of an extra room etc.
- Home Conversion Loans: These loans are available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Through home conversion loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need of pre-payment of the previous loan.
- Land Purchase Loans: These loans are available for purchasing land for both construction and investment purposes.
- Bridge Loans: Bridge loans are designed for people who wish to sell the existing home and purchase another one. The bridge loans help finance the new home, until a buyer is found for the home.
Why take a Home Loan?
What's an average middle class Indian's most cherished dream? A date in world trips in islands with Aishwarya Rai in complete solitude. This would seem to be the answer from the maximum number of episodes of Kaun Banega Crorepati (KBC), despite recently of course, when she has decided to change her fortunes first with Abhishek!
Jokes apart, purchasing and moving into a dream house would generally rank among the top three things on the wish list of most people. After all it’s what been proved by Maslow’s Law of Hierarchy as well. That entire house hunting every few years, grumpy landlords, killing rents would be a thing of the past. Hey, you even get to use nails to hang your favorite paintings and pictures. Don’t you???
Taking a home loan nowadays has become very simpler. The RBI has been regularly slashing interest rates, with the result that housing finance loans that came at an interest rate of 16.5% to 18% four years ago are now available at 11.5% to 13% or lower. Each year the Finance Minister's generosity during the Budget seems to be solely concentrated for the housing sector and construction sector. The Budget 2000's allowed interest payment up to Rs 1 lakh and principal payment of Rs 20,000 to be exempted from income tax. To top it all, the Housing Finance Companies (HFCs) are aggressively wooing customers. Now, when the sun shines, it’s the best time to make hay. Isn’t it?
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