You may think that buying your home is beyond your means. But if you look at different housing loan options available to you, you will be surprised to find that some of these options can help you buy a home.
Knowing about the home loan options can make buying a home easier. The best housing loan in India works as a stepping stone to purchasing the property you have dreamed of.
Here, we will discuss different types of housing loans available in India.
Standard Home Loan
The basic home loan is perhaps the best housing loan in India that allows you to purchase the dream house from the loan amount. You have to provide documentation like a bank statement, IT returns, credit score, etc., to the lender for the loan amount.
Once you pass the eligibility criteria, the lender will provide you with the required amount to buy the desired property, and in return, you have to pay monthly EMIs and interest to them.
Loan To Buy A Land
Some people want to purchase a piece of land as an investment. However, many will like to buy a real estate plot to construct a house independently. They don’t want to purchase a ready to move in property or a builder’s flat.
There are lenders in the market who provide home loans for this purpose, and the only hard work you need to do is find that lender who offers the best home loan interest rate in India.
Loan For Home Construction
If you plan on converting land into a house, you can apply for a home construction loan. The lender will share all details regarding that loan, including the home loan interest rate offers available in India on such loans.
Generally, this kind of loan is different from the basic loan, and the lender will pay you the amount in instalments as per the ongoing progress of the construction project.
The home loan construction amount is given to the applicant only when the lender calculates the construction cost.
Loan for Home Expansion/ Extension
A home loan expansion/ extension loan is regarded as an improvement loan and is taken by borrowers for home renovation.
This loan will get you the amount required for constructing an extra room or any other renovation work.
Home Loan Balance Transfer
As the home loan interest rate in India differs from lender to lender, you can opt for a home loan balance transfer. This step is done by borrowers to avail the benefits of a low-interest rate home loan from a different lender.
In most cases, home loans allow you to transfer balances with no fees and give you a grace period before repayment begins. Plus, since you’re able to lock in a lower interest rate for a longer-term, not only are your monthly payments less, but they’ll be lower over time.
Pradhan Mantri Awas Yojana (PMAY)
First-time homeowners can benefit from the Credit-Linked Subsidy Scheme (CLSS) under PMAY, which offers home loans at subsidised rates.
The eligible candidates will get a home loan tenure of 15 years at a subsidised interest rate of 6.5%. Moreover, the eligible candidates are also entitled to get the benefits of extended home loan tenure of up to 20 years.
However, this loan is only offered by registered banks under this scheme.
As many housing loan options are available in India, you can find the most appropriate ones. It is advisable to read the fine print and consent for a loan only if you understand and agree to all important aspects of the loan. For example, the interest rate is a critical aspect of housing loans.
So compare them before you apply for the best housing loan in India.