Housing Loans in India

In India, we can find a majority of middle class peoples and these people are often found to be building or purchasing houses or apartments to live in. we can see houses under construction almost everywhere nowadays. The money to build these homes is mostly obtained through housing loans in India. Therefore we can say that housing loans in India have become inevitable for buying or constructing or renovation of a home or apartment. We can find a number of housing loan providing companies in India for Indian residents as well as for NRIs to construct a home, to buy a home or plot to build house, or to renovate or refurbish a home.

Housing loans are provided in India for a long period to repay the loan, most probably up to 20 years. The interest rates also vary from city to city as well as company to company. The interest rate may also depend on the time taken to repay the loan amount. The home loan lenders in India first of all will go through the financial status of the customers who require the home loan before providing it. This is to ensure that the customers could pay the installments in time. So, all the appropriate documents regarding your earnings have to be provided to apply for housing loans in India.

There are some eligibility criterions for the borrowers of housing loans in India among majority of the housing loan companies. They are;

There are a variety of home loans provided to Indian citizens by the loan companies. Some of them are; home purchase loan (to buy houses/flats/apartments), home improvement loan (for repair works and renovations to your home), home construction loan (for the construction of new homes), home extension loan (for expanding or extending an existing home), home conversion loan (for those who have a current home loan and require additional fund to move in to a new home), land purchase loan (for purchasing land for home construction or investment purposes), bridge loan (for the people who wish to sell the existing loan and buy a new home. The bank finances for the new home until a new buyer is found for the old home), refinance loan (helps to pay off the debt you have incurred from friends relatives and other private sources for the purchase of your present home), balance transfer loan (helps you pay off a home loan with higher interest rate and avail a home loan of low interest), stamp duty loan (to pay the stamp duty amount for the purchase of a property) and loans to NRIs (for the NRIs who wish to buy or build a new property).

Normally, the interest rate for housing loans in India varies around 9.25% to 12%. Along with the interest rates and the loan amount, there are some extra charges accompanied with the home loans. Some of them are the processing charges, commitment fees, pre-payment penalties and other miscellaneous costs.

For Indians, it’s not a big deal nowadays to build a new home with the availability of housing loans from the many reputed housing loan companies in India.

Be Sociable, Share!