Three Home Loans That Are Sure To Pique Your Interest - Make Money Online

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Three Home Loans That Are Sure To Pique Your Interest

Purchasing a home is a major financial decision and hence, you must evaluate various aspects of the property before making the final choice. Due to the enormous price hike in the real estate sector, buying a home has become an expensive deal. As a result of this, home loans are gaining more and more popularity these days. 

Lucrative home loan features such as competitive interest rates and flexible repayment options have contributed majorly to its growing acceptance amongst the potential home buyers. So, if you are looking forward to buying a house for yourself, a home loan can serve as a great financing option. There are different types of home loans that you can choose from depending upon your requirement. Below is a guide to different types of home loans, this will allow you to settle for a home loan that best suits your needs.

Land purchase loans

Several financial institutions provide loans for land purchase. You can purchase a plot to construct a house or just for an investment purpose. With leading banks and NBFCs, it is possible to avail financing for 80-85% of the total price of the plot.

Home purchase loans

These are the most popular types of home loans that are used for purchasing new or a pre-owned home. These loans can be easily availed with banks and other financial institutions. The approved loan amount is usually up to 80-85% of the market value of the house. The interest rates charged on these loans are either fixed, floating or hybrid.

Home-construction loans

If you wish to construct a house on a plot owned by you, you should avail a home-construction loan. The loan amount is based on a rough estimate of the construction cost. In order to include the cost of the plot in the loan amount, you should apply for a home-construction loan within a year after purchasing the plot.

Home expansion or extension loans

If you wish to expand your house by altering its current structure and constructing new rooms, you should avail a home expansion loan.

Home improvement loans

If you wish to repair or renovate your home for giving it a fresh look but you don’t have enough finances for the same, you can consider availing a home improvement loan.

Balance Transfer Home Loans

Balance transfer home loans are used to transfer an existing home loan from one lender to another due to reasons like lower interest rates or better services. Repaying the remaining loan amount at lower interest rates offered by the new lender can help you save a large amount of money in the long run.

NRI Home Loans

These loans support Non-Resident Indians (NRI) to purchase a residential property in India. The formalities and application process for NRI home loans are different from home loans. Generally, most banks and other financial institutions have NRI home loans as a product of their housing loan portfolio.

Now that you understand different types of home loans, you can make a better choice depending upon your requirements. Lastly, do not forget to read the terms and conditions of your home loan agreement before signing it.
Three Home Loans That Are Sure To Pique Your Interest Three Home Loans That Are Sure To Pique Your Interest Reviewed by RAWAT on 10:08 PM Rating: 5