Types of Home Loan should be a topic to be familiar with this year. 2021 is the year that is supposed to be fair, as everyone is expecting it to be. Make the new year better with gifting yourself and your family a new home. With time, the entire system of mortgage loan acquiring is easier than ever. The mentality of people regarding home loans has changed over time. The interest rates have been at normal levels so far, and that’s how they are expected to be in 2021. Getting a home is one of the most significant achievements.
With that said, let’s have a take on benefits provided by a home loan :
- Tax deduction
- Feeling of accomplishment
- The rise in property rates
- Rent problem solver
- Repayment time
Home loans weren’t this popular in the past, and that’s because people wanted to buy home with their savings. No one wanted to have a loan on the head to repay. But now, home loans come in different kinds and for different amounts of time, making it the best to invest in. Let’s have a look at the different kinds of home loans.
Home Purchase Loan:
This type of loan refers to the loan provided by Banks for up to 90% and by non-Banking Financial companies for up to 80% regarding the purchase of a flat or a bungalow or just a home. The documents required may include papers of the previous loan, identity proof, income proof, and documents of the property for which the loan has been taken. The eligibility for someone to take this loan is stated to be 18-65 years of age, a credit score of 650 minimum, and employment experience of 2 or 5 years accordingly. Currently, the home loan interest rate is around 8%, varying with banks.
Home Renovation Loan:
Home renovation loans work for the betterment of homes that have been constructed long back. Renovations are required in cases where the home is too old or too weak, that is if it is falling apart. Home loan rates vary between 8-10%. The eligibility for age is the same, with employment experience not required. Documents required for the same are income and identity proofs with a rough quotation for renovation.
Home Construction Loan:
This type of home loan is for the construction of a home as the name of the guests. There are circumstances when people might have four walls but nothing that can be called home in there. Or just a barren land but no apartment built on that. Home Finances fulfil this shortage and help with the construction and maintenance of such cases. The documents required for this type of home loan are identity proof, income proof, existing loan documents, and documents of the property that is to be constructed. The eligibility criteria for this kind of home loan is for age to be 18-65 years, the employment experience of 1 year or so, and the credit score of a minimum of 700.
Home Extension Loan:
A home extension loan is provided in cases where the home is to be extended in terms of space. With a growing family, if one is willing to buy extra land or some rooms is to be extended, a particular loan is provided for that. Documents required for the same are income and identity proof, extension related documents, and prior loan documents. The eligibility for the age factor is less than 65 years and more than 18 years. This type of housing loan interest rate is mounted from 8-11% or more.
Pradhan Mantri Awas Yojana:
PMAY home loan scheme has been going on from 2015 up to 2022, aiming at providing home loans at lesser interest rates for people getting homes for the first time. PMAY home loan comes with different periods of repayment and ownership criteria. It goes for the credit-linked subsidy, which ensures that home loan subsidy at 6.50% for a time period of 15 years, or the terms of the loan, whichever is the least, will be considered for benefits by the Government.
Apart from this, loans for NRI, Balance transfer loan in cases where the giver of loan can be changed the case for lower interest rates, land for land purchase, and bridge loans are also provided. For further assistance, make sure you get in contact with Andromeda’s ApnaPaisa. The team of skilled workers with experience of more than two decades will make sure you get the best of unbiased advice and deals.