Home Loan
Kasturi Ventures provides the home loan solutions. A Home Loan is a secured loan product where the lender provides finances for the purchase or construction of a residential/commercial property. Home Loan is taken by a borrower against the property/security to be bought. This is done by giving the banker a conditional ownership over the property.
Owning a home is a great pride for Indians. As they say, ‘Home is where the soul is!’. There is always a part of their monthly savings for house purchasing proceeds. Banks and financial institutions provide different home loan products in order to assist them in their dream of owning a home.
Your home loan needs may not be the same as the next person next to you. While you may be looking for a home loan to purchase a brand-new apartment, someone may be looking to renovate their ancestral property and someone else looking to create the extra space they’ve long desired. Therefore, banks and NBFCs offer highly customized home loan products to suit every need and requirement.
What are the various kinds of home loans?
In India, most banks provide the following types of home loanHome Purchase Loans
Commonly known as a home loan or housing loan are provided for buying houses or apartments. Banks usually offer 80 to 85% of the market value of the property as a loan. They are available for various tenure periods and with fixed and floating interest rates. This can be used for purchasing new homes or old homes which have entered the real estate market as resale.
Plot Loans
This type of loan is provided for the purchase of land or an empty plot for residential activity, construction or investment purpose. This loan cannot be used for buying any agricultural plot of land. Unlike home loans where the loan amount provided is about 80 to 85% of the price of the property, land purchase loans are offered only up to 70% of the cost of the land.
Home Construction Loan
Home construction loans are provided for the sole purpose of constructing a home on an already available piece of land. The land can be an empty plot or demolishing an existing house and building a new one in its place. The loan amount provided for this is normally 85% to 90% of the construction cost.
Home Improvement Loans
These loans help the borrower with all home renovation or improvement work. They are extended towards all construction and renovation work. This could include paint job, new flooring work, plumbing or exterior elevation works are all covered under home improvement loans.
Home expansion loans
These are loans provided to the borrower for expanding their existing home. This includes expanding a single room, adding additional rooms to building a new floor above the existing house. These projects could vary from Rs. 20,000 to more than Rs.10 lakhs based on the project.