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Housing/Home Loan:

It is a loan sanctioned for the purpose of purchase, construction of a new house or renovation of an existing house etc. There are a variety of home loans available. They are:

Home Purchase Loan: This is the common loan for purchasing a home.

1. Home Improvement Loan:
   This loan is given for implementing repair works and renovations to your home.
2. Home Construction Loan:
   This loan is available for the construction of a new home.
3. Home Extension Loan:
   Home extension loans are given for expanding or extending an existing home. For example, addition of an extra room, etc.
4. Home Conversion Loan:
   Available for those who have financed the present home with a Home Loan and wish to purchase and move to another home for which some additional funds are required. Through a Home Conversion Loan, the existing loan is transferred to the new home, including the additional amount required, eliminating the need for pre-payment of the previous loan.
5. Land Purchase Loan:
   This type of loan is sanctioned for purchase of land, for both home construction or investment purposes.
6. Bridge Loan:
   The Bridge Loan is designed for people who wish to sell the existing home and purchase another. The bridge loan helps finance the new home, until a buyer is found for the old home.
7. Balance Transfer Loan:
   Balance Transfer loans help you pay off an existing home loan with a higher interest rate, and avail of a loan with a lower rate of interest.
8. Refinance Loan:
   This loan helps you pay off the debt you have incurred from private sources such as relatives and friends, for the purchase of your present home.
9. Stamp Duty Loan:
   This loan is sanctioned to pay the stamp duty amount that needs to be paid on the purchase of a property.
10. Loans to NRI:
    This loan is tailored for the requirements of NRIs wishing to build or buy a home in India

Security/Collateral:

Banks usually take some additional securities which are called collateral securities. Collateral could be in the form of guarantee from one or two persons, assignment of life insurance policies, the surrender value of which should be equal to the loan amount, deposit of shares, and units or other securities. These additional securities are taken just incase a loan is not paid back; recourse may be taken to such securities instead of depending upon the mortgage of the property which is the last resort.

Related Keywords: Loans- Home Loan -Are you seriously in need of home loan/house loan

For purchase, construction or renovation of existing home…..