We all dream of buying the best home possible. But, with property prices sky-high and soaring, turning the dream into a reality could be a step too far. Here, the good old home loan comes to the rescue.
Taking a home loan can be a huge step. From the sheer amount of financial planning to the lengthy process of getting approved for one, a home loan can often sound overwhelming to those giving it thought for the first time. But it doesn’t have to be!
Let’s go through the basic home loan information in India.
What is a Housing loan?
As the name suggests, a home loan is a sum of money an individual borrows from a bank or financial institution to purchase residential or commercial property. The individual then has to pay back the loan to the lender in Easy Monthly Installments (EMI) at a specific home loan interest rate.
Types of Home Loans in India
Various kinds of home loans are available for you to choose from, depending on your needs.
Some popular choices are:
- Home Purchase Loan – This lets you buy your dream home that fits your budget.
- Construction Home Loan – If you want to build your own house, this is the right fit for you!
- Land Purchase Loan – As the name suggests, this allows you to buy land.
- Home Improvement Loan – Any renovations or reconstructions fall under this category.
- Home Repair Loan – This is mainly for the much-needed repairs around the house.
- Home Extension Loan – If you just decided to make your house more prominent and spacious, this would be a good choice!
Must Read: How to Choose a Home Loan Lender
