Firstly, to begin with, every bank offers a home loan. They will look into various criteria prior to sanctioning it. So, in case you are planning to take a home loan, it’s important to understand all about it; after all, it’s a major commitment that will run into years till you can afford to repay the entire loan amount.
This kind of loan is utilized by an individual to buy a residential property. Any financial institutions will generally provide up to 80-85% of the market value of the house as a loan amount. The interest rate on these loans is either floating, hybrid or fixed.
To buy a plot of land on which the loan applicant is looking to construct a house is what land-purchase loans are given by banks or non-banking financial companies (NBFCs). These banks will lend up to 80-85% of the price of the plot of the land.
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Individuals who own a house, but lack funds to renovate it are the ones who go for this loan. As their renovation might include - repairs to a water-proofing, existing house, digging a bore well, painting of the wall electrical wiring etc.
These are specialized home loans that assist any non-resident Indians who might in buying a residential property in India. Moreover, the structure of this home loan variant is usually very similar to the regular home loans but the paperwork gets a tad bit more exhaustive.
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Home construction loans are for applicants who require to construct a house on a plot owned or co-owned by them. This kind of loan application and approval process are very different in some aspects compared to the commonly available housing loans.
This includes various aspects like:
For individuals who want to expand or extend their existing house, this loan is taken by them and is usually included by banks as part of their home-improvement loans. Based on the purpose of expansion of the current house few banks differentiate this loan.
Now that we have covered the types of available home loans, let’s look at the Home Loan Eligibility Criteria that you will be needing to check off before applying for one -
A minimum of 24 years and a maximum of 60 years is the eligibility of applying for a home loan if the applicant is a salaried employee.
As a salaried applicant, you must have a minimum monthly income of ₹25,000 per month in a metro city, whereas a minimum monthly income of ₹20,000 in other cities.
You can avail a personal loan starting from ₹100,000, on the basis of your eligibility.
Based on eligibility an applicant can avail a personal loan up to ₹35 Crores.
There are 180 Cities across India.
Not mandatory, but it is applicable only for immediate family members as a co-applicant.
An applicant should have a minimum of 2 years of total work experience, and at least 6 months in the current company.
The basic requirement of 750-900 scores
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