There are different sorts of home loans
Home Construction Loan

This is another type of home loan product in which the financial institutes offer the finance to a customer so that they can build a home in a selected area or a plot according to their choice. The main feature of this loan is that loan is disbursed in installments as per the customer’s requirements. Additionally, save extra by paying interest only on the funds used instead of the total amount.

Home Purchase Loan

This type of home loan is used when the buyer is directly purchasing a new property from the seller. Both floating rate and fixed rates are provided on this type of loan.

Home Loan Top-up

This loan is provided only on the running home loans. The rate of interest on this loan is lower as compared to a personal loan and  mortgage loan. In this important point is that home loan top-up is sanctioned only when existing home loan has a regular repayment schedule for 2 years. The main feature of this loan is less documentation and quick disbursement. The loan amount of this loan can be used for any purpose like in construction, renovation, wedding, vacation trip, etc.

Home Improvement Loan

Home improvement loan is also known as a home renovation loan. This loan is provided to the customer when he/she wants to renovate his property that has already been constructed. The criteria and documentation of this loan are similar to any other loan. The expenses included in this loan are paintwork, plumbing work, electrical work, repair work, etc.

Land Purchase Loan

According to the name only, this loan is provided to a customer in order to purchase a plat or lands. The bank usually provides  funds 70-80% loan amount, against a plain land or plot.

Home Loan Balance Transfer

Most popular home loan among customers is Home loan Balance transfer. In order to reduce current interest rate, balance transfer facility is used. And we can also take Top-up loan along with Bank transfer.

FAQ

How many days it takes to disburse my loan ?

Loan disbursal time varies from bank to bank. As fast you can submit your documents, faster will be the disbursement.

What will be the loan tenure ?

Loan tenure generally lasts between 5 to 30 years. Also, you can alter your repayment tenure basis your age and income.

Will I get 100% of the loan amount which I have applied against my property?

No. Mostly banks are offering 80% of the property market value. Rest the loan amount also depends on the technical valuation of your property held by the bank.

What is floating rate of interest?

Floating rate of interest is an interest rate which goes up and down according to the RBI policies / as per as market trend / bank operating cost. So the EMI also increased or decreased depends on the interest rate.

Can I switch my rate of interest from fixed to floating or vice versa?

Yes, you can switch your rate of interest but some fee may be applicable which will depend on the lender.

What will be the procedure if I want to foreclose my running loan?

First, you need to submit an application to the bank / financial firm.

It is possible to transfer loan multiple times?

Yes, you can transfer your loan multiple times if it helps you to reduce your burden.

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