About Home Loan
A house door with your name on it is the ultimate dream of any living being. In India, owning your own house is considered as one of the major signs of success. As the average income ratio of Indians is increasing with of globalization and government pay commissions, the desire to buy own house increasing simultaneously. Along with them the price of property is increasing day by day, irrespective of urban and rural areas. Thus it becomes highly impossible for a common man to buy a house only with his or her savings. This has lead to an increase and extreme popularity in purchasing home loans from banks and NBFCs to live in a dream. Home loans are the highest selling banking product. It also assures a stronger and longer relationship with your bank. A home loan which is also known as housing loan refers to an amount borrowed by consumer/s from a bank or NBFC to buy, construct, repair or renovate a residential property. This borrowed amount or loan is lent on a fixed or flexible tenure and an interest rate on the borrowed amount. The borrower/s are supposed to pay off the principal amount of loan with the interest in the given tenure
Why should you take a Home Loan?
Nationwide increase in property rate
The increase in the property rate across the nation (both land and building) has made it impossible for people to buy a home by only using their existing savings. There are many hidden charges and processing fees in the process of buying a house. Instead of buying a house by spending every penny of your savings and living in constant pressure of being financially unsecured, go in for a home loan.
You get tax benefits
Under section 24 of the Income Tax Act, home loans are eligible for tax exemptions. You can claim up to Rs. 1.5 lakhs out of the interest component of your home loan. Also, if you are staying in the house you got loan for, then you can claim exemption on the principal amount of home loan of up to Rs. 1,00,000. So avail these benefits today!
Large scale financial transactions
Buying a property involves large scale financial transactions. At the time of buying a property, a buyer does not necessarily have the entire amount to his/her disposal. Here home loan covers the financial gap and helps you with a smooth financial transaction. Home loans serve as a convenient mode of finance for home buying. Avoid large scale financial transactions and get a home loan today!
You don’t have to spend all your savings
When banks give away home loans, they finance you up to 85%-90% of the original house purchase price. The borrowers are supposed to pay only 10%-15% of remaining amount. This helps to loosen the financial burden on your shoulders. This way you don’t have to spend all your savings purchasing a house. Contact us to avail a home loan soon!
What are the Types of Home Loan?
Home Purchase Loans
Obvious to the name, this type of loan is given to the borrower specifically to buy a home. Be it a flat or a bungalow, all banks and NBFCs offer home purchase loan. This is the most popular type of loan and highest number of consumers opts for this type of loan.
Home purchase loans are usually repaid over a designated point of time and are issued with some sort of fixed or variable interest rate. With their easy availability and low interest rates, home purchase loans are popular amongst the crowd. They are not only easily available, but also require less documentation. Moreover, they are very handy and beneficial to the users. Home purchase loans are specially structured for the security and comfort of the borrowers' finances.
Home Loan to Purchase a Piece of Land
Consumers who want to live in a self-build house, need a piece of land or property to do so. People also buy a land with an intention of sheer investment. To buy such a land in your name costs a fortune. But this type of loan is not necessarily offered by all banks or NBFCs. You can get this type of loan only if you are purchasing a vacant plot. The term, the interest rate and procedure for this type of loan is similar to basic home purchase loan. It is also designed to suit the borrower's convenience and wish to purchase a piece of land. We, at RS, have special offers and deals to assist you with home loan to purchase a piece of land. You can contact us to avail this loan conveniently.
Home Loan for Construction
Many consumers prefer building their own house instead of purchasing a builder given format. But constructing a whole house doesn’t come cheap and surely needs a hefty financial backing. Thus consumers borrow money from bank or NBFCs to construct a house of their choice. The of getting a construction loan are very different than a home purchase loan. The land on which the house will stand is supposed to have bought within a year of getting the loan as the cost of land is counted as part of the construction loan. The cost of land is excluded from the loan amount, if the land was purchased earlier than one year. To get the loan, the borrower is supposed to give an estimated construction cost to the lender. Once receiving the cost, the lender evaluates and decides whether to sanction or reject the loan.
Home Loans for Extension/Renovation
Many times consumers wish to further construct or renovate their existing house. This may include adding an extra floor or renovating the exteriors and interiors keeping the original structure the same. These loans are becoming popular day by day as people are more interested in renovating existing house than buying a new one. Also this type of loan offers similar interest rates as basic home loan. With its user friendliness and convenience, this type of loan is being majorly availed these days. Since it is easier and more preferred to renovate a house rather than going in for a new one, home loans for extension/renovation is being preferred currently. Contact us to avail this loan at a reasonable rate of interest.