Today, the selling price of residential areas are becoming exorbitantly expensive. Most of the people find the process of owning a house to be financially strenuous. Home loan is a money borrowing process which lets one to become a house owner without gathering all the required funds. The monthly installments for the same can be calculated priorthrough home loan EMI calculator present online on various financial websites. The traditional loan process is known to all but in addition to it, banking organizations have extended their support. To help different types of buyers, the home loan is bifurcated in further types which is mentioned below –
- Construction loan plan – The financial organizations under this category extend loan to those who wish to construct any type of residential building. Eligibility criteria to avail home loan under construction planis as follows –
- Borrowers should own a plot and the purchase date must be under one year.
- Borrower should be clear with an estimate price that will be involved during the house construction.
When these 2 conditions are met, a person becomes eligible to opt for this nature of loan. Under the construction plan, the loan amount will be disbursed in several parts and not altogether. Also, the borrower should be ready to pay the pre-EMI until the full amount of loan is credited to him. Disbursement of loan is directly proportional to the progress of house construction.
- Plot purchase loan–As the name suggests, plot purchase loan helps the borrowers to own a residential land. They can further choose to construct the property then or sometime later. A person can avail plot loan for a period of not more than 15 years and maximum of 70% land value can be borrowed. The financial organizations are also providinglucrative rate of interests starting from 6.8% under this category. People have the option to either opt for land purchase loan or land and construction loan. In the first case, organizations will only lend money to buy a land and in the second one, the institutions fund for the land as well as the construction of house.
- Renovation Loans–Some people wish to improve their house and give it a new look. It does require a strong financial commitment to renovate a home. To support the house owners, renovation loan plans are provided by several organizations. Borrowers hold the flexibility to spend the money under this plan. By renovation or house improvement it meant that the funds can be spent on – painting the walls, changing the wires, internal house repairs etc. In the most cases, many organizations also allow these home loan applicants to reconstruct or extend their house. Reconstruction charges are provided by the financial organizations to support the borrowers.
- NRI Loans – Today, not only the residents of the country but also the tourists and foreign residents are interested to invest in residential properties. By keeping this scenario in mind, several governmental and private financial institutions have incorporated a home loan plan for non- Indian residents. Online documentation and loan payment options are easily available. Just the borrowers should contact a banking organization, discuss the loan amount and tenure, go through the verification and start the process. NRI can calculate their monthly installments through home loan EMI calculator and decide for themselves before contacting any institute. The borrowers can choose a tenure for somewhere between 10 to 30 years and rate of interest applicable under this plan lies around 9% yearly.
- Stamp duty borrowing plan – While purchasing a home, everybody needs to pay some additional charges. Stamp duty is one of the components in additional charge which incurred against the documentation as well as transactions made. In order to hold the ownership of the house or property, this additional charge is paid. People who are about to buy an expensive house, can opt for stamp duty borrowing plan. It is less recognized type of home loan and can benefit to many borrowers. The lenders lend the stamp duty charges applied during the purchase of the property.
- Bridged home loan – Today, many people may want to move out of their existing house and shift into a new one. They then tend to sell their existing one to gather funds for their next house. Meanwhile, when they don’t find buyers to sell their house, they want funds to shift into the new place. Bridge home loan plan them comes into the picture which allows the borrowers to borrow some money for short period of time. The maximum bridge loan tenure last for 24 months or 2 years. People should expect slightly higher rate of interests than the traditional home loan Maximum amount that can be lend under this category is 2 crore INR.
- Joint loans – When two people as co- borrowers lend the money from financial organizations, the process lies under Joint home loans. When one of the applicants is woman, the rate of interest is lowered and are also benefitted from the tax exemptions. The point to be noted is that to become a co- applicant in the home loan, one is supposed to be the co- owner of the house or property. Joint loans have several benefits and one of them is less EMI payments at the end of the tenure because of the lower rate of interest.
These were some of the home loan types that can be availed by different types of buyers. One should always conduct an appropriate research and then consider choose a loan plan. Home loan EMI calculator can further help in forming a decision by providing nearly accurate details about the monthly installments. Compare the benefits and plans across the organizations available today which will help to narrow down the decision. The above- mentioned information gives an insight about the various plans offered today. Select one of the above feasible plans according to the situation and make the loan repayment journey easy and beneficial.