Home is where you knit your dreams and make them come true. Home is where you nurture your family. Having a roof over your head is as important as breathing and eating. Leave alone constructing a house, even finding a property as per your expectations is not easy.
If you do find a suitable property or house, arranging funds to purchase or build it is an entirely different task. This is when Home Loan comes into the picture. Availing a Home Loan looks cumbersome, but it is definitely not so.
You avail a Home Loan from a lender or a bank and pay it back with interest over a period of time through Equated Monthly Installments or EMIs. With a clear understanding of the practical aspects of a Home Loan, it is possible to avail a home loan easily. With this book, you gain decent knowledge on Home Loans. Let’s make the task simpler!
You May Also Watch:
Home Loan is given by financial institutions like banks, Housing Finance Companies (HFCs) and Non-Banking Financial Companies (NBFCs) to purchase or construct a house.
With a Home Loan, you can:
Home Loan is a secured loan. The house that is to be constructed or purchased will work as collateral or security till you repay the Home Loan. If you default on repayments, the property will be auctioned by the lender.
There are a wide variety of Home Loans tailor-made to serve your needs:
1. Home Purchase Loans: These loans fund the purchase of new houses.
2. Home Improvement Loans: These loans fund repairs and renovations on a house that has been purchased.
3. Home Construction Loans: These loans fund the building of a new house.
4. Home Extension Loans: These loans fund for extension of an existing house. For example: An additional room or a floor.
5. Home Conversion Loans: These loans are sanctioned if you already have a Home Loan but now wish to purchase and move to another house, which needs extra funds. Here, the existing loan is transferred to a new Home Loan and there is no need of a down payment.
6. Land Purchase Loans: These loans fund the purchase of land.
7. Bridge Loans: Avail these loans if you wish to sell an existing house and purchase another one. These loans help you bridge the money gap, while buying a new house, until you find a buyer for your existing house.
8. Stamp Duty Loans: This loan is specially designed to meet the stamp duty on your property.
9. Balance-Transfer Loans: These loans facilitate the transfer of the outstanding balance of an existing Home Loan to another Housing Finance Corporation or bank.
SEE ALSO: Why should you avail a Home Loan?
Following are the common terminologies used in Home Loans:
Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.
Be Wise, Get Rich
This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.