Types of Home Loans Available:
Home Equity Loans
Home Extension Loans
Home Improvement Loans
Home Purchase Loans
Land Purchase Loans
Mortgage Loans
Many banks and financial companies offer home loans. But before
choosing any home loan option, consider few points as mentioned below.
Property Types:
You should know more about type of property in lieu of which you
seek loan. There are loans offered by banks to Resident Indians and NRIs
for ready property, under construction property, self-construction and
home improvement.
Loan Tenure:
The loans provided by financial institution are offered in tenures
or period of years. You should check out the tenure for loans available
in the market. There are loan tenures available for upto 25 years.
Repayment Options
- You need to choose between fixed and floating rate home loans.
Many banks and financial institutions will provide you with the option
of switching from a floating rate home loan to a fixed rate home loan
once a year at no extra cost. But you need to check out the facts first
with the loan providing firm.
No Penalty option
- There are also no penalty option offered by few finance companies.
In this mode, you can opt to pre-pay up to 25% of your loan every year.
Pre-payment is permitted after a minimum of 6 months following loan
disbursal.
Tax Benefits
- You should know the right of your tax benefits on home loans.
Resident Indians are eligible for certain tax benefits on principal and
interest components of a housing loan under the Income Tax Act, 1961.
