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5 Types of home loans that you can choose from

  • Highlights

  • Choose a tailor-made loan for home improvement

  • Take a home loan for completed & under construction homes

  • Avail better interest rates with a home loan balance transfer

  • Take a construction loan if you are building your own home

When you are considering buying a home or fundinghome-related requirements, it makes sense to consider applying for a loan. After all, a loan is one of the best options considering the flexibility and affordability it offers. But, taking a loan asper your specific needs is what counts. Check the tenor, loan amount andvalue-added featuresand then choose the one that aligns with your requirements perfectly. This way, you can make your borrowing experience easier on your pocket and more fulfilling too!

Take a look at thedifferent types of home loans before you make a choice.

Home loan

A home loan is an obvious choice when you want to purchase a residential property. You can also use a home loan to construct a home on a piece of property that you already own. Furthermore, you can even buy land and build a home using one high-value home loan, or use it to re-builda home or renovate it. With benefits such as a top-up loan and an EMI holiday, this option is certainly a good one.

Six Things To Remember Before Taking a Home Loan

Home loan balance transfer

When interest rates drop, your existing home loan provider may notpass on the price benefit to you. Instead of continuing with the existing loan, you can transfer it to a lender who is offering a more affordable home loan.This helps you avail a lower interest rateas well better add-on features such as a top-up loan. A home loan balance transfer is most profitable during the initial years of the tenor when the interest component of your EMI is the highest. When you carry out a transfer towards the end of the tenor, the benefits that you accrue are negligible.

Home construction loan

If you are looking for a loan to help you construct your dream home from scratch, a home construction loan is ideal. The disbursal of the loan amount may be in instalments, or in one chunk depending on the terms of the lender. It is essential to remember that when you take this loan, theamount is based on rough estimates of the cost of construction..

Land purchase loan

As the name suggests, a land purchase loan allows you to invest in land. So, if you are getting a good deal, you can take this loan and make a valuable investment. You can then choose to construct on the land, as when you have the funds available to do so, or when you feel the need to. Besides, you can choose to purchase just the land without any intention of building on it.
There are also other loans such as NRI home loans, stamp duty loans, bridged loans, home conversion loans and house expansion or extension loans that you can consider. In fact, it is best to evaluate all these options before selecting one.Also, be sure to use a Home loan EMI calculator to judge the affordability of the loan beforehand and to plan repayment.

Additional Read: RBI Guidelines For Home Loans

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