If you want to buy a property or home or a plot, you need not invest your entire salary, savings, bank balances, etc for the purchase. You can make use of the various loan schemes introduced by the banks.
Our team at Lancor has collected 7 types of home property loans which might help you get ideas about the available loan options.
Loan for Land Purchase
A land loan helps borrowers to buy land or plot and the repayment is done through Equated Monthly Installments[EMI] within a specific tenure prescribed by the bank.
Typically, land loans/plot loans are a good investment as the land’s value increases over time and also gets better returns at the resale.
Loan for Property Purchase
Typically, this loan type is the most popular home loan type among the lenders and the borrowers.
This loan avail borrower who wants to buy an apartment or home from the builder, buy a home property from another seller or construct a home in the existing plot.
If you want to know how to reduce the home loan interest rate, click here.
Home Construction Loan
Janet Bossi, OceanFirst Bank senior vice president says “ A home construction loan is a short-term, higher-interest loan that provides the funds required to build a residential property.”
Many banks are offering loans for home constructions, if you wish to construct a home in a vast plot area, then get a loan from the bank and start the construction work.
Loan for Home Renovation
Are you planning to bring some alterations to your existing home? Here is the solution. Bankers are lending loans for home renovation too.
You can use this loan amount for tiling, painting or extending the balcony of your home.
Generally, there are banks like HDFC and Bank of Baroda to offer various loan schemes for home renovation. If you like to learn more about renovating your home in a budget-friendly way, click here.
Loan for N.R.I
This type of loan is exclusively tailor-made for Non-Resident Indians for buying properties in India. One thing that bothers is that it takes a tedious process for the approval of official papers.
Basically, the time allotment for repaying the amount will vary and depend on the amount you borrowed. Take a look at this blog to find out the important documents that NRIs need to submit when buying a property in India.
Balance Transfer of Loan
Typically, the balance transfer of loan option is for borrowers who transfer the unpaid principal loan amount to a new bank which offers cheap interest rates and better services.
Before transferring your account to a new bank, you must inquire about the repayment date in your existing bank so that there will be no chances of missing any payments.
Home Conversion Loan
Home conversion loans are helpful in transferring your existing home loan package to another package within the same bank.
For instance, if you have already taken a loan and had bought a home. Now you find a new home that best suits your needs than the old one. You can easily transfer the existing home loan and can buy the new one!
Click here to get more tips on how to apply for a home loan.
Here is a graphic that sums up the entire post.
We hope that this blog would have helped you to get ideas about the various types of property loans. Now, it is your turn to pick any of the type based on your requirements.
As you have many loan options, buying an apartment becomes quite easy. If you have any ideas to buy an apartment, you can contact us (+91 (814) 478-7405).
Our team will assist you to get you an apartment that meets all your needs and expectations.