Seeking a home loan is a common criterion. It is impossible to carry out the whole process of buying and constructing a house alone without any financial help. So home loans can be a saviour in that case. Therefore, to provide you with proper guidance, we will give you an idea regarding various home loan categories in this post.
Categories of Home Loans
So far, you have learned thy lenders offer home loans on various terms. But today, in this segment, we will discuss home loans and their various sorts.
- Home Loan for Buying a New Plot
A home loan does not mean a loan for buying homes only. Rather, you can use the same loan for buying land as well. This type of loan is flexible because after the loan amount, you can use the same for construction, and the rest you can save.
- Loan for Getting Home
Now, this type of loan is especially for buying a house. You can get this loan either in the form of pre-approved or new. Now coming to the rate of interest, it can be both variable or floating. Most of the popular banks pay 85 per cent of the net amount.
- Loan for House Construction
You can apply for a loan for constructing a house as per your dream rather than having any property with prior construction. But note that the approval process for this kind of loan is quite different because here, the amount of the plot is also incorporated in the total loan amount.
Now here, you can either get the loan in a single go or else you can get the loan in several instalments. And bank usually analyses the loan amount based on the draft construction expenditure.
- Loan for House Expansion
Suppose you have constructed a house, but now you want to expand your second floor and also want to add an extra balcony. In that case, you can also opt for taking a home loan. For example, you can try out a home extension loan from HDFC bank.
- Home Loan for Converting the Home
This kind of loan is for those who have already taken a loan for having a house. But they want a new house, so a conversion loan is necessary. With this loan, the borrowers can finance the newly bought home, and the payer does not need to repay the earlier home loan. This type of home loan is undoubtedly convenient, but yes, it is a bit costly.
- Home Improving Loan
This home loan is especially for remodelling or renovating the home. And it includes both interior and exterior repair and repainting. Certainly, it will add up to make your home look beautiful in every way.
- Home Loan for Transferring a Balance
Now, this type of home loan is available to individuals when they particularly want to shift their home loan from one bank to another. The reason behind that can be anything like less interest rate, or maybe the other bank is offering a more robust service. In this case, the borrower can repay the loan at less interest rate, which has been revised.
Hence, the above discussed are classified as home loans. Now you can avail any one of these as needed. Do not trust blindly anyone’s offer that you get for a home loan. Invest some time in looking for the best options for HDFC home loan or any other, and then choose a particular one to get the best deal. It is crucial to make an informed decision.
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