Various national or private banks as well as non-banking financial companies in India offer different home loan options, which need to be understood in detail in order to know which one is best-suited to your needs. With the skyrocketing prices of houses, home loans are more on the rise, and that too at cheaper rates, thanks to the falling interest rates. What’s more, there are home loans for engineers offered by banks these days. The following are the different types of home loans available:
1. Land purchase loan
These are loans which are sanctioned by NBFCs and public and private sector banks for buying plots. These are relevant when the applicant wishes to build his/her own home on this plot that is being bought. Loans up to 80-85% of the plot value are usually given.
2. Home purchase loan
These loans come in handy when it comes to buying any residential property in the country. These loans can come at interest rates which are floating or fixed.
3. Home construction loan
There are financial institutions which offer home loans to those applicants who wish to build their own homes on plots. The approval and application mechanism is slightly different from regular home loans.
4. Home Extension Loans
People who wish to expand their homes can take this loan. This comes within the category called home improvement in many cases.
5. Home Improvement Loans
People who require funding for renovating homes can take this loan for repairing existing homes, water-proofing, all electrical works and wiring, bore-well digging and wall-painting among other tasks.
6. NRI Home Loan
These loans are tailored for the benefit of NRIs who want to purchase residential property in the country. The basic aspects are quite similar to standard home loans although there is more documentation involved.
7. Home Conversion Loan
Those who already have home loans but wish to shift to another residential property can choose this loan for purchasing this new residential property.
Advantages of availing home loan
Engineers can enjoy a number of advantages by availing a home loan. These are as follows:
1. Flexi loan facility:
The borrower can pay interest only on the loan amount, and thus save on EMIs. No charge is levied on the pre-payment of funds, and one can re-avail these funds minus any additional documentation.
2. Easy balance transfer facility:
You can refinance your existing home loan to new one, and enjoy minimal documentation and fast processing. Many companies allow you to transfer your existing home loan, and get a top-up loan at a minimal interest rate.
3. Top-up loan
High-value top-up loan can prove to be of immense help when it comes to financing other requirements like furnishing your new home, buying a car, or paying for your child’s education.
4. Part pre-payment and foreclosure facility:
There are no charges for the same, so the loan will be pocket-friendly.
5. Flexible tenor
The tenor ranges up to 25 years, to accommodate your repayment capacity.
6. Minimal documentation:
You can get your home loan faster, thanks to the easy home loan eligibility criteria and minimal documentation.
7.Online account management
Companies offers an extremely convenient digital customer portal, for the online management of home loan.
8. 3 EMI holiday
Engineers availing home loan from can enjoy freedom from paying EMIs for 3 months, with the amount adjusted against the loan tenor. Thus, salaried individuals have a grace period to plan finances without having to compromise on your lifestyle.
9. Customized insurance schemes:
This helps in protecting your family from the burden of repaying the home loan in case of unforeseen events.
Punit