Buying a home without a home loan is a rarity nowadays. With more and more loan options in the market given by national or private banks and non-banking financial companies in India it has become very easy to avail loans nowadays! You can plan your investment in buying a home without worrying much, as finances will not be a problem with a home loan to boot! You can even go for more spacious home if you have the backing of a home loan.
Before jumping in, you need to understand each of the options available to know which one will work best for you based upon your requirements. Luxurykeralaflats.com, the best online portal to buy luxury flats in Kerala brings to you an insight on the various types of home loans in Kerala:
1) Land-purchase loan
Banks or non-banking financial companies (NBFCs) offer Land-purchase loans to buy a plot or land on which the loan applicant can construct a house. Generally, 80-85% of the price of the plot or land can be availed.
. 2) Home-purchase loan
Financial institutions provide a home-purchase loan amount that can be utilized to buy a residential property like a villa or flats in Kerala. Usually 80-85% of the market value of the house is given as loan amount. The interest rate on these loans is either fixed, floating or hybrid.
3) Home-construction loan
Home loans is provided to applicants who want to construct a house on a plot owned or co-owned by them. In this case there are certain conditions to be satisfied than other commonly available housing loans.
- The plot or land should have been bought within a year.
- The borrower has to provide a rough estimate of the cost that will be required for the construction of the house.
- If the loan amount does not include the cost of plot, only the estimation for construction of house is taken into account.
4) Home-extension loans
People who want to expand or extend their existing house can avail this loan. Most banks include this type of loan as part of their home-improvement loans.
5) Home-improvement loans
Individuals who own a house, but are short of funds to renovate it can avail the Home-improvement loans. Renovation may consist of repairs to existing house, painting of the walls, digging a bore well, water-proofing, electrical wiring etc.
6) NRI-home loans
These types of loans are specialized home loans that help non-resident Indians who are interested in buying residential property in India. The documentation is a bit more detailed even though the structure of this home loan is similar to the regular home loans.
7) Home-conversion loans
If the existing home-loan borrowers wish to move into another property they can apply a home conversion loan to buy a new house.
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