5 Different Types of Home Loans That You Should Know About
Thanks to the easy availability of housing loans, an increasing number of people in India are now fulfilling their dream of purchasing a home of their own. But while taking a loan for buying a house is the most common type of housing loan, do you know that there are other types of loans for a home? Let us have a look at some of the most popular types of housing loans in the country-
1. New Housing Loan
The is the most popular type of housing loan that most people know about. It allows you to purchase a new or resale house with the help of a loan taken from a lender. Most lenders offer 80%-90% of the cost of the property as a housing loan, and the owner is required to pay the remaining amount as a down-payment.
Just like any other type of loan, a new housing loan has monthly EMIs which the borrower is required to pay up to a fixed duration.
2. Housing Loan with No Income Proof
One of the most critical requirements of lenders these days is your income documents. The lenders want to make sure that you have a stable income and would be able to repay the loan on time. However, many Indians still have unstructured or low income and do not possess the documents required to apply for a new housing loan.
For such people, some of the lenders have now started offering housing loans with no income documentation. By simply fulfilling a few basic requirements, even people with low or unstructured income can apply for these loans and purchase their dream property.
3. Home Improvement Loan
Once you have purchased a home, you will also be required to regularly upgrade it based on the changing needs of your expanding family. However, home improvement can be a costly project.
If you do not have the lump sum money required for the project, a home improvement loan can come to your rescue. Apart from upgrading your home like changing its interiors/exteriors, these loans can also be taken for a home extension. For instance, if you want to add another room to your house, a home improvement loan can help.
4. Housing Loan for NRIs
If you are NRI planning to purchase a property in India, know that you will not be eligible for a new housing loan as most lenders only offer these loans to Indian residents. But there are a few lenders in India that offer exclusive housing loans to the NRIs.
These are like new housing loans but can be used for purchasing a home or even a residential plot. The loan is available for self-employed as well as salaried individuals, making it easier for NRIs to purchase a home of their own in India and benefit from the booming real estate market of the country.
5. Home Loan Under PMAY Scheme
If this is the first time that you are purchasing a home of your own, PMAY or Pradhan Mantri Awas Yojana can help you save up to Rs. 2.67 lakhs. The home loan scheme rolled out by the central government is available for EWS, LIG, and MIG.
With this scheme, first-time homebuyers can get an interest subsidy when they take a home loan based on the income class they belong to.
Different Types of Housing Loans to Suit Different Requirements
To better meet the requirements of the borrowers, lenders in India now offer many different types of loans. If you are looking for a housing loan, get in touch with a top lender to know more about these loan offerings and select one that best suits your requirements.