Types of housing loans
Posted on: 25/Sep/2017 4:32:56 PM
The Housing Loans offered by the various financial agencies including the banks, help the common individual to realise the dream of an own house. Apart from housing loans, loans are also given for buying a land and also ‘top-up’ loans over the housing loans are also offered.
In order to arrive the optimum loan required, it is advisable to be aware of the different prospects of obtaining a housing loan.
The public sector and private sector banks, as well as other financial agencies, offer loans for buying land. The loan is extended based on the applicant’s request for buying a flat/house or a land/plot. The loan covers 80% to 85% of the cost.
The interest ratio for this loan may be in a ‘changing interest format’ or ‘the unchanging interest format ‘ or a combination of both.
The housing loan is also given to applicants who intend building a house on the land owned by them. However, the procures and formalities vary from the other housing loan applications. For an example, the plot/land must have been bought within a year prior to the date of application.
Loans are also extended for expanding the existing construction. The loans are categorized based on the purposes given for applying for the expansion of housing loan. Some banks give this as a loan for the housing development. In case some applicants express interest to move to another house when already availing housing loan, they can avail the ‘Home Conversion’ Loan.
For the house owners running short of money for renovation, the banks extend a loan for the same. This is known as home improvement loan. Carrying out the necessary repairs in the house, painting, or digging a borewell will all come under this category.
Apart from the above types of loans, NRI Housing loans are also being given. However, the procedural activities are much more complicated.
