India has been going through an economic transition, which has led to movement of population from villages to cities, and from cities to cities in search of livelihood. In this turmoil, demand for better housing has increased, and there continues to be a gap between demand and supply in urban housing, in urban as well as rural areas. Acquiring a home depends on the supply of money, and this story continues to be rewritten by banks, financial institutions, and others in the money supply chain that have made home acquisition much easier.
Considering the cost of living, instead of dipping in to your savings, you could go for home loans, which are made available by these institutions. Even better, these money lenders have made the process easier by coming home to you through Ruloans in this endeavour to make housing finance available to you online. Your dream home could be just a click away at Ruloans, but before you click on the Home Loan Calculator, please take some time to understand ‘Home Loans’.
Home Loans are categorically secured loans taken from banks or lending institutions and interest rates that vary from lender to lender. The home or property becomes the security for the lender who has all rights to sell the property for recovery of the loan in case you fail to repay. Generally, the repayments of these loans are done through pre-planned Equated Monthly Interest or EMI according to the interest and term of money borrowed by you. Depending on market conditions, the lender offers loans up to 90% of the total property cost.
Most home loan plans are for the purpose of purchase or construction of your home on the property; however, funds are also available for home renovation and extension.
Take a closer look at the types of Home Loans.
- Acquisition of Land Loans
Such loans are offered as a flexible option so that you can save funds, and construct your bungalow, duplex, or any other type of home you have in mind. This means you have the options to save, invest, and earn if you construct a home, or just treat your purchase as an investment. These kinds of borrowings are typically up to 85%, and only available if you want to purchase a vacant plot.
- Purchase of Home Loans
These types of loans are for buying new homes or pre-owned homes from the open property market. The lender helps you purchase your dream flat, bungalow, or duplex based on varied criteria, which determine the rate of interest. These borrowings too are typically 85% of the total property cost. Most city folk go for these types of loans.
- Home Construction Loans
If you are someone who wants to construct a home to suit your lifestyle, go for this type of loan. These types of home loans are designed especially for those people who desire not to own pre-constructed homes. Approvals take place after taking into account the cost of the plot. The amount approved may be based on a rough estimate of construction costs, and the disbursement may be lump sum, or in instalments.
- Home Expansion or Extension Loans
These kinds of loans are available for the changes that you would want to your existing home. Should you want to add a portico, or a bathroom, or another annexe to your existing dwelling, or alter the structure of your shelter, you may seek a home extension or expansion loan with interest rates similar to the others.
- Home Improvement Loans
Should you seek to improve your existing home, carry out renovation, construct a water tank, or carry out electrical renovation, there are banks that offer loans for such specialized home improvement programmes.
- Home Conversion Loans
So you have a dwelling place from where you want to move into another home of your choice due professional or personal reasons, you may do so. Although this may come a cost, the home loan you have on your earlier dwelling could be moved to the new home you seek to purchase by opting for a new home conversion loan plan. Once approved, the current loan transfers from your old home to your new home.
- Pradhan Mantri Awas Yojna
The Government of India announced a plan in the year 2015 to allow every Indian Citizen an opportunity to own a home. This Pradhan Mantri Awas Yojna opportunity came in the form of the Credit Linked Subsidy Scheme or CLSS extended to the previously known Indira Gandhi Yojana. Under the PMAY, citizen can avail a Home Loan from almost all banks allied with this scheme. You could check if you are eligible for this type of Home Loan at Ruloans.
- NRI Home Loans
Non-Resident Indian Home Loans are especially meant for patriots who wish to purchase residential properties in India. If you are a NRI and seek to buy a house in India, the formalities of application are a little different from the others, but be assured these packages are specifically designed for you.
Now that you are aware of the types of Home Loans available in the market, remember to identify your requirements, and select the right type of home loan to suit your purpose. Being meticulous in your observation will reduce paperwork to simply your loan approval process.
Ruloans Home Loan EMI Calculator will surely help you plan your funds better!