Home loans hold highest percentage of loaned money a bank makes in India. We can understand how important any home loan here is! Settling is synonymous to owning a home. Today, everyone dreams big of owning a perfect abode where they can find solace at the end of the day. Always a home loan is an easy way to fund your house purchase rather than burning the entire saving to buy a home.
Many banks and housing finance establishments offer different types of best home loans these days. The demand for home loans has increased manifold in recent years and people have different expectations especially for best home loans. Taking this as a target place, lot of banks has come up with the concept of home loan schemes. This included different interest rates and special offers for best home loans for women, agriculturalists and etc.
Get a proper checklist before you apply for a home loan
Best home loans available in Indian housing finance market.
Home loans are not just for buying a house but also for a variety of other purposes. Some of the popular types of home loans are below.
Home Purchase Loan: Home purchase loan is the most popular for purchasing a new or a pre-owned home. This type of loan is commonly available and is offered by many banks and housing finance establishments.
85% of the total amount is offered as a loan by many banks for a home purchase loan. There are certain types of interest rates in different ranges. They would be fixed or floating types of interest rates. The normal range of Home loan interest rates is from 8.35% to 14.00%. You need to know which type will be convenient for you.
SBI max gain loan: This loan is not applied for self-employed and businessmen. So, if you are an employee, you can gain max with this loan from SBI. The interest will be saved for the amount of money you deposited and maintain in your account. Let’s say, you have loan for 20 lakhs and you maintain 10 lakh balances in your account. In this case, the interest amount will be calculated only for 10 lakhs.
You can find two types of interest rates when you apply for home loan. You need to choose the one depending upon the mode of repayment you plan to do!
Fixed Interest Rate: A fixed interest rate will not change during the term of the fixed rate that you choose. At the end of your fixed interest rate term, you either choose a new one from the rates available at that time or move to a floating interest rate.
Floating Interest Rate: A floating interest rate may go up or go down as interest rates in the wider market change. You can change to a fixed interest rate at any time, although some types of loans might be only restricted to floating interest rate.
Home land purchase loan: This type of loan is to buy a plot of land on which borrowers wish to construct her/his house. Most of the banks offer up to 85 percent of the price of the land.
Home construction loan: This loan can be availed by the individuals who want to construct a house according to their wish rather than purchasing an already constructed one.
Home expansion/extension loan: Along with time, our home might become congested, and then the best option would be the expansion loan. Some banks also offer loans for home expansion including alteration of current structure.
Home improvement loan: This loan offers funding for renovation and repair works such as paintings, construction of overhead water tank, internal and external repairs and electric renovation which makes your home look better.
Balance transfer home loan: This is just a transfer of loan from one bank to another bank for the convenience of the borrower. This is mostly done to repay the remaining loan at revised, lower interest rates
NRI Home Loan: This loan is especially to support the Non-Resident Indians (NRI) in buying a residential property in India. The formalities and application procedure for this type of loan is different from all other loans.
With a wide range of home loans available today in the Indian market, it is equally important to identify the required out of best home loans and apply for the right type. It would reduce not just the paperwork, but also simplifies the loan approval process. You can also enjoy a loan at reduced interest rates.
Best article explaining about the loans.