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Different Type of Home Loans in India

Updated: June 13, 2022
Different Type of Home Loans in India

In India, having a home has become linked with settling down. In today's hectic world, everyone wants to have a nice home where they can live with their family in comfort. Due to rising real-estate prices, purchasing a home is becoming a Herculean endeavour. Given that it is not a good idea to spend all your savings on a single asset, a home loan is a convenient option to finance your purchase.

Different forms of house loans are available these days from banks and other financial institutions. In recent years, the demand for home loans has risen dramatically, and people have varying requirements about a home loan. Several financial institutions have come up with the idea of creating different house loan programmes to cater to the needs of different parts of society. Several banks, to name a few, offer specially designed home loans for women, agriculturalists, and loans solely for the purchase of land.

Types of Home Loan:

You can get a home for a lot of reasons but mainly it is for a home purchase. Following are some of the forms of home credits available on the market:

Loans for Construction of a Home

This financing is designed specifically for persons who would rather build their own home than buy one that has already been built. This form of loan has a separate approval process because it considers the plot cost as well. When applying for a house building loan, the most crucial requirement is that the property must be purchased within a year for the plot cost to be used in the loan amount. A preliminary estimate of the building cost is taken into consideration to determine the loan amount. The funds may be disbursed completely at once or in installments. If you need a loan for home construction, you can apply with Grihashakti.

House Expansion Loans

Do you want a second balcony or a third bedroom? Lenders like SMFG Grihashakti also provide loans for home expansion, which may include alterations to the existing structure as well as the addition of new rooms.

Loans for Land Purchase

Several lenders provide land acquisition loans. Buying land is a versatile alternative; the buyer can save money and build a house as soon as his resources allow or keep the land as an investment. Please note that at the moment, this product is not offered by Grihashakti.

Bridged Loans

Bridged Loans are short-term loans for existing homeowners who want to buy a new house. It assists borrowers in financing the purchase of a new home while the existing property is sold. This loan type usually needs a bank mortgage on a new home and is for a period of about two years. Please note that at the moment, SMFG Grihashakti does not provide such loans.

Loans for Home Improvement

External and internal repairs, painting, the creation of an above water tank, and electrical renovations will all improve the appearance of your home. If you don't have the funds to repair and renovate your property, you can apply for a home improvement loan with Grihashakti.

NRI Home Loans

The requirements and application process for this type of loan are different from the others because it is specifically designed to assist non-resident Indians in purchasing a residential real estate in India. At the moment, Grihahshakti only considers eligible applicants for home loans who are resident Indians.

Balance Transfer Home Loans

This option is available when a person wants to transfer their house loan from one lender to another for reasons such as lower rates or better services provided by the other lender. This is done to repay the outstanding loan at the other lender's updated, lower interest rates. If you are not satisfied with your existing lender and wish to explore others, apply for a home loan balance transfer with SMFG Grihashakti today.

Loans for the Purchase of a Home

The loan for the cost of a new or pre-owned home is the most common sort of home loan. This loan is also widely available, and many lenders provide it in a variety of forms. Interest rates are either floating or fixed, and the tenure can be upto 30 years. SMFG Grihashakti offers eligible applicants with home loans at affordable interest rates. Apply today to know more.

Must Read : Tips to Reduce Your Home loan Interest Rate

Disclaimer: *Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you wish to know more about our products and services, please contact us.

SMFG India Home Finance Co. Ltd. (Formerly Fullerton India Home Finance Co. Ltd.)
CIN number: U65922TN2010PLC076972

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