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Home Loan Types_WC
Home Loan Types
There are several types of Home Loans available in India, but it can be challenging to determine which one is right for you. People have unique needs and expectations when it comes to buying a home, so it is essential that you find a fit that is both suited to your housing requirements and your current financial standing. This article details the types of Home Loans available to you, so you can make an informed choice, after evaluating your needs.
The Different Types of Home Loans Available in India _WC
Different Types of Home Loan in India
An aspiring homebuyer has several loan options at their disposal if their eligibility and financial standing are strong and meet the basic lending criteria.
Home loans for purchasing propertyHome Loans in their purest form are used to purchase a property – be it an under-construction or read-to-move in one. In such a case, the lender retains a degree of ownership of the property until the borrower has cleared off all their dues. The borrower can only take back the ownership of the house after full loan repayment.
Home Renovation Loans:Home renovation loans cater to home improvement projects or expenses one might incur during a renovation.
Home Expansion Loans:Not to be confused with Home renovation loans, Home expansion loans are meant to fund the cost of expanding your existing housing property.
Home Construction Loans:Home construction loans fund the construction of a new house from scratch and not new constructions on an existing property, unlike expansion loans. Some lenders allow the cost of the plot to be included in the loan amount, provided the plot has been purchased in under a year of seeking the loan.
Home Loan Balance Transfers:This loan facility allows you to transfer your ongoing Home Loan to a new lender to leverage better lending terms and make possible savings on your current EMI amount.
Joint Home Loan:A joint Home Loan is a housing loan taken by two or more people to divide the liability and boost application’s eligibility. This is beneficial on several counts, and also helps the borrowers save substantially through tax rebates.
Borrowers are advised to diligently research what market lenders are prepared to offer and how to meet their eligibility criteria to benefit from their Home Loan terms.
Note: The information provided on this page is generic and Bajaj Housing Finance may or may not offer all Home Loan types mentioned.
*Terms and conditions apply.
Frequently Ask Questions (FAQs)_types_of_home_loan
Frequently Ask Questions (FAQs)
A few relations are allowed to be a co-applicant for Home Loan. A husband and wife can be co-applicants. A son and an unmarried daughter can apply together. Brothers can also take a Home Loan together. However, a brother-sister or sister-sister cannot be co-applicants.
In order to build or buy a home, Home Loan can be taken to realize this dream. On the other hand, property loan or a Loan Against Property is primarily taken by using the existing property as a collateral.
Yes, a Home Loan is a type of mortgage. A mortgage is a type of loan in which the borrower uses a property as collateral for the loan. In the case of a Home Loan, the borrower pledges the residential property that they are purchasing or constructing as collateral for the loan.
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