Home Loan in India

Home Loan of housing loan is the money borrowed from either a financial institution or an individual for a fixed amount of time. The purpose of the home loan is either to buy a residential property or to repair a residential property. After a certain time period, the borrower would have to return the loan along with the proposed rate of interest of that amount.  

This Format of loan has been the primary source of finance for the house seekers all over India. To that end, most major banks and certain businesses all over the nation provide this facility to the Indian populace. Its significance is so great that the term “easy home loans” has become the dominant factor when it comes to an advertisement for the banks.  

Buying a hose is essentially the most important decision that an individual has to make in their life. However, the costs they have to bear when it comes to construction and purchase tend to be a bit too much. To that end, home loans provide the necessary financial assistance. They have therefore become an indispensable form of income for most major banks in India.

However, Banks are not the only institutions who provide such a service, for there are individual corporations that are Non-banking Financial Companies that provide the same. However, Availing home loans can be quite harrowing when you consider all the hoops and documents involved. Therefore, registration wall assists in providing you with the best assistance for loans.

Why Home Loan

The answer to the question of “Why take a Home loan?” is pretty self-explanatory. However, buying a house for your own might not be the only reason to avail home loans. There are other reasons that avail such finances; the most common of which entails investment opportunities. Furthermore, with time, the costs of lands and buildings have become quite extravagant. Therefore, a home loan is not merely an option anymore, it is a necessity. 

However, if we go into the details of why home loans are so prevalent, you will find out that it has a lot more perks than you can actually observe. 

The residential properties have become expensive: As a general rule of thumb, property transactions tend to be a lot bigger than the regular transactions. Adding to that, the current price value of residents is quite extravagant. However, as a buyer, you do not have to bear the entire cost of the property on your own and therefore, you can get access to the necessary finances from the different party. 
Banks tend to buy houses on your behalf: When you ask for a home loan from a bank, you are not asking for the complete costs. Instead, what you are asking for is for the bank to buy the property on your behalf. The bank finances your costs by the ratio of 80-20. Meaning that the bank will incur 80 percent of the total property cost and you will incur the rest, aka 20 percent of the costs. 

Types of Home Loans

The types of home loans depend upon the type of property that you are buying and the amount of loan you are asking for. To that end, Banking and Non-Banking Financial Companies provide the following types of housing loans for you: 

Home Purchase Loans: this type of loan is pretty self-explanatory. This form of housing loan is availed to the buyer for the purpose of purchasing a house. Consider one of the most common among the housing finances, all the Major Banks and NBFCs provide this sort of finance. 
Home Loan for construction: While the home purchase loan is meant for buying the house, this variant of housing loan is meant for constructing. However, there is a catch; the land where the house has to be constructed has to be purchased within a year to count the cost of land as part of the loan. Furthermore, the process to acquire finance for construction is also different, for you will have to provide with a lump sum of the cost-estimates that will combine the cost of land with that of construction. 
Plot loans: These are the loans that are availed to buy a plot of land. 
Home extension/revocation Loan: This loan is provided to the lender for the purpose of making changes or for extending the size of an already existing property. 
Home Conversion loan:  this loan is availed if the lender has to change the house. Suppose you have bought a house, but now you are changing your residence to a new house; to assist the change, this loan can be provided so that you can transfer the loan to the new house.  
NRI Home loans: If you are an NRI who wishes to purchase the property inside the confines of this nation, then this type of loans is present. 
Stamp Duty Loans: It is the loan on the stamp duty charges that incur while you are purchasing a property. 
Bridged Loans: If the mortgage is an option for you, you can apply for bridges loans. These loans have a time period of 2 years max and within that period of time, the house will be mortgaged.