A home loan is an amount of money that an individual borrows from a bank or money lending company at a certain rate of interest to be paid with the EMI every month. The property is taken as a security by the money lending company for the Home Loan. The property can either be commercial or personal in nature. When the borrower cannot pay the dues, the lender will possess all the legal rights to recover the outstanding loan amount by sale of the property in question.
Types of Home Loans
Home Purchase Loan
This is the loan that one takes for purchasing a home.
Home Construction Loan
This loan comes in handy when you are building a new house.
Home Extension Loan
Suppose you plan to add another room, garage, bathroom or kitchen to your home. This is the loan that you should apply for and this also comes in handy if you are planning to have another floor.
Home Loan Balance Transfer
You can use this mechanism to switch your outstanding loan amount to a different lender with better terms and conditions and lower interest.
Home Improvement Loan
This loan covers expenditure related to repairs of your home or even renovation.
Land Purchase Loan
Someone wishing to buy a plot of land for constructing his/her own house can avail this loan.
Joint Home Loan
These are loans taken by two people or even more. For instance, spouses can apply for joint home loans.
Top Up Home Loan
This kind of loan helps you borrow some more money above the outstanding loan amount. There are attractive rates of interest offered by Bajaj Finserv in case of top-up loans.