Home Loan: Many people have the dream of buying a house, but due to the burden of responsibility, people are not able to fulfill their dream of buying a house with their own income. In such a situation, home loan proves to be a great help. Many people think that there are only one or two types of home loans but in reality it is not so. There are 5 types of home loans. Every home loan has its own benefits. If you are thinking of taking a home loan, then definitely understand which home loan can be best for you.
Home Purchase Loan
The first is home loan for buying a house, i.e. home purchase loan. If you are buying a new flat or a ready-made house, then this is the best. Banks easily lend up to 80 percent of the property value, sometimes up to 90 percent. The tenure of the loan can be from 20 to 30 years, so that the EMI is less.
Home Construction Loan
The second one is home construction loan. If you want to build your own house then take this. This may also include the cost of the plot, provided you apply for the loan within one year of purchasing the plot. The cost of both plot and construction is covered.
Home Improvement Loan
After this, the third one is home improvement loan for repair or renovation of the house. If you have an old house, want to paint, change the floor or make a new kitchen, then this is useful. Banks give these loans easily because the property is already yours.
Home Extension Loan
Fourth is home extension loan for expanding the house. If you want to add an extra room or floor to an existing house, then this is perfect. Special loan for increasing size.
bridge home loan
Apart from this, there is a fifth home loan – Bridge Home Loan. This is a little different, for short term. Suppose you are selling an old house and buying a new one, but the sale is taking time. This loan fills that gap and prevents shortage of money. Banks give maximum for two years.
Can you take two home loans?
Yes, if you take a joint loan, i.e. with husband, wife or family member. If the partner’s credit score is good and income is strong, then banks give more amount, the salaries of both count. CIBIL score plays a big role. The score ranges from 300 to 900, if it is above 750 then the loan is easy and at low interest. Banks like SBI offer introductory rates. To keep CIBIL good, pay bills and EMIs on time.
There are some things you should know before taking a home loan. For this an application has to be filled and in this you will have to fill name, phone, pin code, job type. Then documents like copy of Aadhaar, PAN, Voter ID, driving license are required. Electricity bill, water bill, mobile bill are necessary in address proof. Apart from this, you can also apply for home loan by getting information from the bank.
