Home loan means that you buy a house on installments. In simpler terms when you want to own a home and can’t afford to pay the amount in lump sum, you can pay it in monthly installments with an interest rate. Home Loans in India are disbursed by many Banks as Loan Banking is one of the most important function of the Financial Services in India.
Taking a home loan nowadays has become very simpler. The RBI has been regularly slashing interest rates, with the result that housing finance loans that came at an interest rate of 16.5% to 18% four years ago are now available at 11.5% to 13% or lower.
The interest rates of home loans are expected to go down even further according to analysts who foresee a cut down in the rates by the RBI in the wake of the decision taken by US Federal Reserve to cut its rates by a significant margin.
Home Loan Types
There are many home loans provider in the market to make your dream come true. But before you opt for any home loan provider, you need to consider certain factors related to property that you are interested in buying and also about the salient features offered by a home loan provider.
You can take different types of home loans like Bridge Loans, Home construction Loans, Home Equity Loans, Home Extension Loans, Home Improvement Loans, Land Purchase Loans etc for different schemes available in the market.
- Home Purchase Loans: These are the basic forms of home loans used for purchasing of a new home.
- Home Improvement Loans: These loans are given for implementing repair works, healing and renovations in a home that has already been purchased.
- Home Construction Loans: These loans are available for the construction of a new home.
- Home Extension Loans: These loans are given for expanding or extending an existing home. For e.g.: addition of an extra room etc.
- Home Conversion Loans: These loans are available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Through home conversion loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need of pre-payment of the previous loan.
- Land Purchase Loans: These loans are available for purchasing land for both construction and investment purposes.
- Bridge Loans: Bridge loans are designed for people who wish to sell the existing home and purchase another one. The bridge loans help finance the new home, until a buyer is found for the home.
One would be entitled for home loans in the range of Rs 5 lakh to a maximum of Rs 1 crore, based on the repayment capacity, previous credit history and the cost of the property. The bank may provide a maximum of 85% of the cost of the property or the cost of construction as applicable and 75% of the cost of land in case of purchase of land. The repayment capacity is calculated taking into account factors such as:
- Age
- Income/Salary
- Qualifications
- Dependant/(s)
- Assets/Liabilities
- Credit History
- Stability / continuity of your employment/business
- Income of co-applicant/(s)
Home Loan Providers - Banks
- Bank of India - Home Loans
- Citibank Standard Home Loan
- Dena Niwas Housing Finance Scheme
- HSBC Home Loans
- PNB Housing Loan
- SBI Housing Loan
- Standard Chartered India Home Loans
Housing Finance Companies
Public Sector
- BoB Housing Finance
- Can Fin Homes
- LIC Housing Finance
- IND Bank Housing
- PNB Housing Finance
- SBI Home Finance
Private Institutions
- HDFC
- ICICI
- LIC
- HUDCO
- GE Money Home Loan
- Sundaram Finance Group
|
