HOME LOAN

Home Purchase Loan is the most common type of home loan availed usually to buy ready-to-move-in properties, under-construction properties and pre-owned homes/resale properties. As per RBI guidelines, lenders can offer loan-to-value ratio of up to 75-90% of the property value.

Composite Loan is a perfect financing solution for individuals who want to buy a plot of land either for investment or for building a house. In this type of home loan, the first disbursement is made towards the purchase of plot. The subsequent payments depend on the stages of construction of the house.

Home Construction Loan is available for individuals who want funds for the construction of a house. The loan is granted only if you own a plot of land and plan to construct a house on it. Just as in composite loan, here too the disbursement depends on the stages of construction of the house.

Home loan balance transfer is a facility in which the outstanding loan amount with one lender can be transferred to another lender, which offers a lower interest rate or better loan terms. The new lender pays off the entire outstanding loan amount to the previous lender. After this, the borrower pays the EMIs at the new rate to the new lender.

Home improvement loan can be availed to fund home renovation and home repairing expenses of the existing house. The interest rate for this loan is same as that for a regular home loan. However, its loan tenure is shorter than the regular home loan. Under this loan type, financial institutions usually lend 75-90% of the construction estimate, depending on the loan amount and LTV ratio.