Types of Home Loan You Can Take in India

In India, getting a house has increasingly become the benchmark for settling down. With the rising real estate prices in India, one can fulfil their dream of owning a home by securing a Bajaj Finserv home loan. They are a handy respite for most prospective home buyers. From national to private banks to NBFCs in India offers a variety of home loan to meet the different demands of the borrowers, and the right one can be chosen by the Bajaj Finserv home loan EMI calculator. Some of the most popular home loan choices are listed below for your consideration:

The Basic home loan

The most common loan taken by people to realise their ambition of owning a home is a typical home loan or Bajaj Finserv home loan. A home loan is what? It’s a kind of loan that enables you to obtain cash from the lender to pay for the property of your choice. You can then pay back the loan to the lender in monthly instalments after making the transaction.

The lender may approve a home loan for up to 80%–90% of the cost of the property if you meet the requirements for the loan. However, the rest of the amount has to be arranged by the borrower itself.

Loan For Home Construction

If you already own a piece of land and would like to build your dream home on the same, consider a home construction loan. It is typically disbursed in instalments depending on the completion of the construction project, unlike a standard home loan where the lender makes a lump sum payment of the loan amount. A home building loan’s approved amount is typically determined by the estimated cost of the project. The borrower has to submit a rough estimate of the cost of construction of the house, and after that, banks approve the loan amount based on the estimated construction cost.

Loan for home additions or improvements

A home expansion or improvement loan is one of the most popular kinds of home loans. A home extension loan can be useful if you currently own a house but wish to add a room or perhaps a floor to it. It can also be used for renovating an existing home. Renovation works include serious repairs to the roofing and walls, painting, electrical wiring, and so on.

Home loan balance transfer

You have the choice to change lenders if you find favourable terms and conditions, such as lower interest rates from different lenders. However, take into account the actual savings before transferring your home loan, as the new lender may charge costs like processing fees and more.

Pradhan Mantri Awas Yojana (PMAY)

First-time homebuyers can obtain Home Loans at discounted interest rates through the Credit-Linked Subsidy Scheme (CLSS) under PMAY. You may be able to save up to Rs. 2.67 lakh as a result of your home loan. Additional advantages include longer loan terms of up to 20 years. It is imperative to know beforehand that banks registered under the scheme are eligible to offer this subsidised loan.

How to Choose a Home loan?

Availing of a home loan involves a lot of planning and research in order to choose the right lender, tenure, and interest rate. When choosing a home loan, a number of criteria need to be taken into account. Family size, the type of home loan, and the purpose for buying the house are some of these considerations. Depending on these and other considerations, you may decide to choose a different type of home loan using the Bajaj Finserv home loan EMI calculator. Additional considerations to bear in mind when selecting home loans in India are listed below:

Comparing Home Loans: The simplest way to evaluate a Bajaj Finserv home loan is to ask different lenders for a fact sheet that includes all the necessary details. This will make it easier for you to directly compare the features and fees. The fact sheet will include the total amount that must be repaid during the loan’s term, the sums that must be repaid, and any fees or charges. Additionally, this will provide you with a customised comparative rate that will assist you in selecting from the many loan possibilities available. Use the Bajaj Finserv home loan EMI calculator to know its affordability.

Home loans with variable, fixed, and split rates: These three refer to the various interest rates at which the lender will offer a home loan to you.

Variable Interest rate: Interest rates are variable since they are based on the official cash rate and might change.

Fixed Interest Rate: According to this, your loan’s interest rate will stay the same for a set amount of time. The typical time frame after which it will restore to a normal rate is 2 to 5 years.

Split loan: With this type of loan, your home loan is based on a mix of fixed and variable interest rates.

Portability 

You can transfer your loan from one property to another using this feature. It is advantageous to both parties since it enables the lender to keep you as a client while sparing you from needless application and exit fees. The sale and acquisition of properties must close on the same day, which is an important point to keep in mind.

Conclusion

At last, it all comes down to what you need when trying to locate the best home loan for you. Some of the elements of the Bajaj Finserv home loan are influenced by the RBI and lender-set home loan laws. You can also determine your loan eligibility using a home Bajaj Finserv home loan EMI calculator. Find the right type of loan, consider its benefits and get in touch with the top lender if you want the best home loan. The sort of home loan you choose will depend on your needs, but you should keep in mind that you can borrow a maximum of 85% of the property’s actual market worth. This indicates that the final 15% down payment needs to be arranged by you.

By Zain Liaquat

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