With the ever-rising estate price, buying a home is becoming increasingly difficult daily. The best way to fund your home purchase is by taking a home loan. These days there are different kinds of lenders providing home loans that you are supposed to consider first. Not to mention the various home loans you need to know about. This is how you can find the most suitable home loan out there.
Basic Home Loan
This is considered the most popular home loan type that most borrowers tend to go for. In this arrangement, you can apply for a certain amount of money (depending on the price of the property you wish to buy) from a lender.
The bank is supposed to approve a specific percentage of this amount (up to 70-80%). After buying the house or property, you will have to repay the loan within the loan repayment period.
Home Construction Loan
This kind of loan is given to those borrowers with a piece of land who want to build a home there. Compared to other types of home loans where you get a lump sum loan, in a home construction loan, you get the money disbursed in several instalments. It makes sense as you do not need all the money at once. You have the option to go for an HDFC home loan.
Home Improvement/ Extension Loan
This is another popular home loan type. If you already have a home and want to renovate or improve it, you can apply for this kind of loan. The amount of loan that you need may differ following your renovation type. There are certainly several factors to consider in this regard. As the name suggests, this loan is used to renovate or expand a home and attracts many borrowers for obvious reasons.
Home Loan Balance Transfer
If you have already got a home loan from a lender and are making the repayments, then you are still allowed to switch to a different lender. You have the option to do it in case you get a better loan option from another lender where you will have to pay lower interest. This kind of home loan is not as popular as the other ones. But this is catching the attention of borrowers, and people are gradually showing interest.
PMAY or Pradhan Mantri Awas Yojana
This loan is given to those individuals that come under CLSS (Credit-Linked Subsidy Scheme). If you are a first-time homeowner, you will get subsidized interest rates. Upon taking this loan, you can save much money from interest.
It comes with several other benefits, such as an extended loan repayment period of up to 20 years. Only the lenders registered under CLSS can offer this loan to the borrowers. You are supposed to explore it before applying for this loan.
It can be seen from the above discussion that there are different kinds of home loan options that you can consider to go for. Each of these loans has many perks and benefits that you should know about.