Home Loan
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Home Loan
Everyone’s dream in their lifetime is to make their own home, during the time spent buying a house, the purchaser needs to battle a ton to make this simpler with one of the greatest monetary choices of their lives – purchasing a home. That is the reason we offer an assortment of home buys advance projects that can be customized to address all your issues. Our master contract specialists can walk you through the whole home purchasing cycle to guarantee that your advanced experience is smooth and calm. The choice of the correct home advance includes paying special mind to your necessities, funds, and history to assist you with picking the correct advance choice.
Types of Home Loans
There different types of home loans people can go for any type of according to their requirements.
Hera are few types of Home loans
Home Purchase Loan
This type of loan is taken to purchase a residential property, such as flats, rowhouses, and bungalows. The maximum loan amount offered by banks to purchase these properties is 90% of the present market value of the property. Non-Banking Financial Companies (NBFCs) offered 80% of the property value.
(Plot)Site Purchase Loan
As mentioned above, a land purchase loan is also one of the different types of house loans. This kind of loan is offered by most home loan lenders and provides you the flexible option of purchasing a plot of land on which you can construct your house. You can purchase the land with a loan when property rates are low, and construction can be carried out whenever you have the finance. You may also purchase the land solely for investment purposes and sell it for a profit.
Construction Loan
If you don’t want to buy a property that is pre-constructed and prefer to customise it to your own specifications, you can take out a home construction loan. To be eligible for this loan, you need to own a plot of land, if you want to include the plot cost in the home construction loan, you need to ensure that the land is purchased within a year. The loan amount you can get is determined on the basis of the cost of the plot, and you also need to provide a rough estimate of the overall house construction cost. Such loans are typically disbursed in a single lump sum or in instalments as construction proceeds.
Composite Loan
The composite loan is a loan extended by banks and financial institutions for the purpose of purchasing a plot/site and constructing a house on it within a given timeline. It’s a combination of plot loan and construction loan. In this type of loan, the cost of both land or plot and construction of the house is covered.
Home Improvement Loan
Every few years, you may find the need to re-paint your house. You may have to fix a leaky ceiling or hide those hanging wires that make the house look ugly. The costs of these repairs are usually higher than anticipated and a home improvement or remodelling loan is the right type of house loan to help you meet these expenses. Home improvement loans can be taken to refurbish the interiors, including repairing the tiles, upgrading the electrical system or even modernising your home the way you like.
Benefits of Home loan
Low interest rates:
One of the advantages related to a personal loan is that it is an unsecured one. This implies you don’t have to promise or pledge anything for your loan as a guarantee. In spite of the fact that this can be an explanation behind your financing cost, you can get a low-interest personal loan adequately in case you meet the capability necessities.
No prepayment charges:
Unlike other loans where lenders charge prepayment penalties on payment made towards home loan, there are no prepayment penalties on floating rate home loans. So, whenever you have surplus money, you can utilize it for making part payment towards your home loan and lower your burden. However, there will be prepayment charges in case of floating rate home loan.
Higher repayment Tenure
Among all types of loan, home loan has the longest repayment tenure which goes up to 30 years, so one can reduce the burden of equated monthly instalments by extending the tenure. Use our house loan EMI calculator to know how EMI change as you change your home loan tenure
Tax Benefit
A home loan is possibly the biggest tax-saving instrument, thanks to a number of tax deductions available under Sections 24, 80C and 80EEA of the Income Tax Act. Together, an eligible home loan borrower can claim a total tax deduction of up to Rs 5 lakh
Eligibility criteria for a Home loan
To get a Home loan, the following are basic eligibility criteria.
For Salaried
- Minimum Age: 18 years
- Minimum Monthly Income: 25,000/-
- Work Experience: Minimum work experience should be 2 years
For Self Employed Professionals
- Minimum Age: 21 years
- Minimum Annual Income: 5,00,000/-
- Work Experience: Minimum 3 years
Documents Required for Home loan
For Salaried
- Photos: 3 Passport Size
- Identity & Age Proof: Pan Card, Aadhar Card, Voter ID, Passport
- Address proof: Passport, driving licence, Voter ID, utility bills (electricity/water/gas), Registered Rental Agreement
- Bank statements for the last 3 months
- Salary Slips along with latest Form 16 or ITR or your company offer letter
- Bank Statements Latest 3 months or 6 Months Bank Passbook
- Property related documents: Sale Agreement
- Co Applicant Documents: Photos, and Identity Proof (Pan Card, Aadhar Card, Voter ID, Passport)
For Self Employed Professionals
- Identity & Age Proof: Pan Card, Aadhar Card, Voter ID, Passport
- Residence proof: Passport, Driving licence, Voter ID, Utility bills (electricity/water/gas)
- Proof of Business Continuity of at least 5 years (for Businessmen/ self-employed individuals)
- Bank Statements: Latest 3 months or 6 Months Bank Passbook
- Latest Income Tax Returns
- Property related documents: Sale Agreement
- Co Applicant Documents: Photos, and Identity Proof (Pan Card, Aadhar Card, Voter ID, Passport)
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