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Different Types Of Home Loan For The New-age Indian

By Author: Aishwarya Mahurkar
Total Articles: 291

There are now a variety of home loans available for individuals to choose from in the market. Financial institutions have designed a number of home loans to better meet the needs of the borrowers in the market. Some of the different types of home loans currently available for one to choose from are:

Land Purchase Loan

Land loan is offered to individuals who wish to purchase a plot on land on which they plan on constructing the house of their dreams. The land which has been purchased by the individual using this loan can be used for both residential as well as commercial purposes. The loan amount sanctioned by the financial institution will only cover up to 85 percent of the value. The rest will be required by the individual to pay out of his own pocket. The eligibility for this type of loan is that the borrower must be above the age of 21years and have a steady income flow.

Home Construction Loan

This loan is offered to individuals who already own a plot of land and now require the funding to build their home upon it. Before an individual applies for such a loan, it is crucial for them to conduct a detailed analysis of all the costs they will incur. Based on this knowledge they can then submit an application for a loan. Such a loan is usually provided to the individual either in a lump sum amount or in installments depending on the agreement signed.

Home Purchase Loan

This type of a home loan is the most common type which is sought after by individuals. When one plans on purchasing a new piece of property or an existing piece of residential property from an owner, they apply for this type of a loan. The financial institution will only provide a maximum of 85 percent of the total value of the house as a loan to the individual. The rest will be required by the borrower to pay out of his own pocket as down payment.

Home Expansion Loan

This home loan is applied for when an individual wants to make certain changes and renovations to his existing home. This loan allows the individual to expand their existing home to add another room. The financial institution will only provide the borrower with 70 to 80 percent of the total cost of construction as a loan.

These are a few of the most recent additions to home loans that are now available for an individual to choose from depending on his or her requirements.

Author Bio :

Aishwarya Mahurkar is an experienced writer concerning the housing finance industry. Her articles help in informing her readers of the processes that cover home loan and land loan, interest rates required documents etc.

Total Views: 88Word Count: 457See All articles From Author

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