Types Of Home Loan And Its Uses

There are different kinds of loan repayment options available, making it more preferable by the customers as it will help reduce the burden of the daily monthly expenses.

Home purchase loans

The first and the foremost thing which comes is the home purchase loan. People purchase this type of loan because the availability of the loan to value ratio is too good in the market regarding this type of loan. These types of loans are generally avoided for flats in the complex, bungalows and row houses. One of the best things about this type of loan is that the financial institutions provide a loan of about 90% of the total value of the property at the house, and in some cases, it is also a hundred percent with low home loan processing fees.

To avail of this type of loan, there are some eligibility criteria for the people with an average range of age limit of 18 to 65 years, and the credit score should be above 750 or more. If the person is salaried, then the job experience needs to be a minimum of two years. On the other side of the person is self-employed, the minimum experience should be having for an average period of 5 years.

Home construction loans

This type of loan can be availed only by the owner of a plot of land on which a person wishes to build a new house or construct a new home. There is also an option available for taking a loan for or finishing an unfinished house.

According to this type of loan, the eligibility criteria among most financial institutions have been kept quite similar. The credit score requirement has been held at 700 or above, which means that a person having the trade scored more than 700 will have a favourable chance of getting the approval of a home loan.  For example, SBI home loans also offer good facilities for the customers as much as possible. As for the salaried people, there must be an experience of a minimum of one year while on the other side there is no such requirement in the case of a self-employed person.

Home improvement loans

This type of loan is generally availed for expansion or beautification or doing any sorts of changes. A considerable lump sum amount is required and can be funded through this type of loan only. There are specific criteria and this type of loan facility. The age criteria should be between an average limit of 18 to 65 years while on the other side it is thoroughly available for both the salaried all the self-employed people.

Some documents need to be submitted either in the attached form with the physical application form or uploaded online in JPG or PDF format. The documents required are the age proof, address proof, income proof, the property deeds, if there is any.

Land purchase loans

This type of loans mainly provides land or a plot to construct a house in that particular land. The eligibility criteria for this type of availing of the loan are very simple as most of the age group comes between the eligibility criteria limit from 18 years to 65 years.

Land purchase loan or NRI house loan

There must be a house construction or any structure for any business for any kind of commercial uses. While on the other side there is always also a requirement of an NRI housing loan, which includes the construction of a house on a particular land located within India and the tenure period for which can be extended to the limit of 30 years. To conclude, we can say that there is an ample number of opportunities and a variety of criteria range where somewhere or somehow one will automatically get fit in any of the requirements and the things have been made.