Different types of housing loans in Kerala | Veegaland Homes
Be it a regular house or an apartment; a home of one’s own is a dream of every individual. The realization of that dream is a complete challenge in today’s world, especially with the property and land rates climbing higher than ever.
However, housing loans make the unattainable dream of owning a home a reality for many, by offering them the necessary capital to buy a home. Numerous types of home loans are provided by different banks and non-financial companies in Kerala.
Veegaland Homes will elaborate in this blog, on the different Home loans available in today’s housing market so that you can understand each one properly and choose the best one for your specific need. Let’s have a look at them:
Land Purchase Loan
Owning your own house is unquestionably a better option than living on rent and it is the ultimate dream of every individual who pays rent for the place they live in. However, to have a house of your own, you need to purchase the land as well; which along with the construction cost will make it financially difficult for most of the individuals.
Land Purchase Loan makes things a little easy for such individuals by lending about 80-85% of the cost of the land that they are planning to buy. To avail of one such loan, the applicant must meet the standard eligibility criteria and are required to pay an interest rate that may vary according to their profession or salary.
Home Construction Loan
A Home Construction Loan is sanctioned to applicants who already have a plot or piece of land in their name or co-own a plot and are looking for funds to construct a house there.
The process to apply for a Home Construction Loan and its approval is different from the process of other home loans:
* The plot in the applicant’s name should have been purchased within one year of applying for the Home loan.
* A rough estimate of the cost of the construction should be made available to the concerned bank or the financial company.
Home Extension Loan
A Home Extension Loan is granted to those who wish to make additions to their existing house. Included under the home improvement loan scheme of some financial companies, this type of Housing loan requires the applicant to submit the plan for a home extension, that has been approved by the concerned local body.
The lender’s representatives may also visit the site before and during the construction to examine if you are using the Home loan for the stated purpose and otherwise reject the loan and take legal action.
Home Improvement Loan
A Home Construction Loan is approved for applicants who want to conduct major repairs to their existing house. Repair works could be painting, wiring replacement, digging wells, repairing cracks, etc.
Certain banks and other financial institutions may also offer several benefits along with home improvement loans such as Competitive rates, Insurance cover, Flexible spending, etc.
NRI Home Loans
As the name suggests itself, NRI home loans are loans sanctioned to Non-Resident Indians (NRI), who wish to build a home or an apartment anywhere in Kerala. Even though the process looks more or less the same as the normal loan, a lot more paperwork is involved as the applicant is not a resident of India.
Home Conversion Loan
Home Conversion Loan is approved for applicants who wish to buy another home, even though they already own one. The financial institution or the lender could inquire about the reason for leaving the current house while considering your application.
Home Purchase Loan
Home Purchase Loans, one of the most availed types of home loans in Kerala are sanctioned to applicants who wish to purchase flats or apartments or villas, or bungalows. Banks and financial companies provide a certain percentage of the cost (which varies from bank to bank) of the property the applicant plans to buy.
Different financial institutions offer home purchase loans with varying terms, down payments, and fixed, floating, or hybrid interest rates. You can choose the appropriate one depending on your financial capability.
Prospering as the top builders in Kerala, prominent banks and financial institutions have approved home loans for our customers and we assist you through home loans and property registrations at your request.
RERA-approved Apartments in Kochi for sale by Veegaland Homes have sample flats equipped to offer first-hand experience to interested buyers. To know more about apartment projects, please visit: www.veegaland.com
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