Which Type Of Home Loan Suits You?
Every individual has a different perspective when it comes to owning a house. Some might prefer buying ready-to-move-in property, some may like to get it self-constructed, so on and so forth. Considering such needs and aspirations of people, banks and financial institutions offer various types of home loans.
Let us look at the types of loan products available in the market.
This is the basic kind of home loan that people avail of to buy any kind of residential property, whether under-construction or ready to move. It can be a bungalow, row house, apartment, cottage or any real estate meant for residential use.
Plot loan is available solely to buy a residential plot. You can easily avail of loan when you want to buy a plot and construct your house on it. All you need to avail of this loan is clear title deeds.
As the name suggests, home-improvement loan is availed of to improve the interiors and exteriors of the home. Changing tiles and/or flooring, painting or getting the interiors done, needs huge funds. You can avail of this type of loan to fund any kind of renovation and enhance the look and feel of your home without worrying about the capital.
This kind of loan is available for extending the already existing space. Home- extension loan can be used for adding rooms or adding a floor or creating space for additional needs.
Short-term bridge loan
There are instances when an individual is on the look-out of a new house when he already owns one. He wants to buy the new one by selling the older one. However it is not possible always to sell the already existing and instantly buy another. Banks facilitate you by providing short-term bridge loan that fills the gap between you buying the new home and selling the existing one.
Rural housing finance
This kind of home loan is only available to people living in rural areas such as farmers, planters, horticulturists, agriculturists and to those who want to buy or construct residential property in villages. The loan amount can be utilised not only for construction and purchase but for extension and/or improvement of home as well.
Reach home loans
This kind of loan is available to people who are working in an unorganised sector and want to construct their house on a freehold plot or on a plot provided by development authority or on a leasehold plot.