What are the types of home loans available?
There are a variety of home loans available.
- Home Purchase Loan
- This is the common loan for purchasing a home.
- Home Improvement Loan
- This loan is given for implementing repair works and renovations to your home.
- Home Construction Loan
- This loan is available for the construction of a new home.
- Home Extension Loan
- This loan is given for expanding or extending an existing home. For example, addition of an extra room, etc.
- 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.
- Land Purchase Loan
- Sanctioned for purchase of land, for both homes, construction or investment purposes.
- 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.
- 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.
- 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.
- Stamp Duty Loan
- This loan is sanctioned to pay the stamp duty amount that needs to be paid on the purchase of a property.
- What is an EMI?
- EMI (Equated Monthly Installment) is the amount payable to the lending institution every month, till the loan is paid back in full. It consists of a portion of the interest as well as the principal.
- > Loans To NRIs
- This loan is tailored for the requirements of NRIs wishing to build or buy a home in India.
- > How is an EMI calculated?
- EMI Formula:
EMI = P × r × (1 + r)n / ((1 + r)n - 1)
, where:
P = Loan amount, r = monthly interest rate, n = loan tenure in months
- EMI Formula: