Which Type of Home Loan is Best in India?

Which Type of Home Loan is Best in India?

Home is where love resides, memories are created, friends always belong, and laughter never ends.”

Everyone wishes to have their own house, where they do not have to be in restrictions. The house where they can shout loudly, throw parties, sleep without stress, come home late, etc. 

The wish of getting a new own house can be fulfilled by the home loan option. The home loan is good for those who live in a rented house and want to have their own home. The home loan is very helpful to them.

BENEFITS OF HOME LOANS

  • First and the most important benefit or advantage is that you will get your own house.
  • The home loan asks for low interest rates.
  • The home loans are tax free loans.
  • You can grow your savings and get your own home.
  • This will help you to not disturb your savings that will help you in future.
  • It has a repayment tenure of at least thirteen years that will reduce your risk of repayment of the loan amount and you can repay the loan amount easily.
  • If you will have your own house then you do not have to pay the every month’s rent to the house owner where you are a tenant.

TYPES OF HOME LOANS

The home loan is of various kinds. For different purposes of house work the banks provide different types of home loans. Here we have listed the types of home loans and mentioned their details for you.

LAND PURCHASE LOAN:

The land purchase loan is for the individuals who have a land in their eyes and they want to buy it and build their house there. This loan will help you to purchase the land of your own at the location where you are wishing to have. This is good for you and your family.

HOME PURCHASE LOAN:

If you want a ready to shift house and need money for that, then you should go for the home purchase loan. The home purchase loans help you to get a new house in your favorite location and in the area where you want. The interest rates of these loans are fixed sometimes and sometimes not fixed.

HOME CONSTRUCTION LOAN:

When you have land for your house then you need to have money for the construction of the house. The home construction loans help you to construct or build your dream house. This loan handles all the expenses of the house construction such as building the house, electricity work,and other construction works.

HOME EXTENSION LOAN:

Sometimes it happens that we need more space or rooms in our house for that money is needed. The home extension loan helps in all these things. It includes increasing or expanding the size of the rooms, creating new rooms,or adding new floors in the house. The construction amount is included in this loan.

HOME IMPROVEMENT LOAN:

The home improvement loan is also known as house remodelling loan. The home renovation or coloring is important in some years for the house to look good and beautiful. This loan helps in reaching the expenses of the paints,renovation,furniture,waterproofing, electricity repairing and other things that are often common in every few years. 

HOME CONVERSION LOAN:

Home conversion loan is for the individuals who have a home loan but want to get or transfer into a new house. The individual does not have to find a new lender or bank for the new loan,the loan amount will be transferred or converted to the loan amount of the first loan. 

APPLY FOR A HOME LOAN

Applying for a home loan can be done in a few easy steps. Here we have mentioned the steps by which you can apply for a house loan.

  • First check the budget that you need and select a bank from where you want to have a home loan.
  • Visit the bank or the website of the bank.
  • Get an application form and fill the form appropriately.
  • Fill each and every information asked in the from.
  • Attach the documents required for the home loan and sign the form.
  • Then submit the form to the lender or the bank.
  • Submit the property papers and information of the property.
  • Now wait for the disbursal of the loan.
  • After the disbursal of the loan the bank or the lender will provide you the loan.

DOCUMENTS REQUIRED FOR THE HOME LOANS

  • The very first document required is identity proof such as aadhar card,voter card, ration card, passport, license,etc.
  • Then you need to give your residential address proof such as aadhar card, utility bills, etc.
  • Your age proof is also asked by the bank.
  • Your clear passport sized photographs are required.
  • Your income proof is also asked by you.
  • If you are a salaried employee then you have to give employment letters,bank statements,etc.
  • If you are a self employed individual then you have to give business address proof,income tax slip,etc.
  • You also need a NOC,no objection certificate from your colony or society or neighbours.

ELIGIBILITY CRITERIA FOR HOME LOANS

  • For a salaried employee and self employed individual the age criteria is 21 years to 65 years.
  • The maximum salary should be ten thousand per annum. 
  • The borrower should have a clear credit history and present.
  • The monthly income of the borrower should at least be 25,000 per month.
  • The Loan tenure is up to thirty five years.
  • The borrower should have an experience of three years in a company.

DISADVANTAGES OF HOME LOANS

  • The home loan is a commitment for the long term, you have to handle it for a very long period.
  • The interest rates are higher in this type of loan.
  • Sometimes you do not get the expected return when you sell out the property.

BANKS GIVING HOME LOANS AFTER LOCK DOWN

ICICI Bank Home LoansIndiabulls Housing Finance
SBI Home loansLIC Housing Finance Home Loans
HDFC Bank Home LoansPNB Housing Finance Limited
Axis Bank Home LoansBank of Baroda Home Loans
Dewan Housing Finance LimitedTata Capital Home Loans

“A house is made of bricks and beams. A home is made of hopes and dreams.” 

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