An Idea On Types Of Home Loans

Introduction

Home loans are loans that are meant to buy properties where the collateral is kept as security. The main purpose of home loans is to buy homes(properties). These home loans are of a high value and these funds raised as home loans are offered with a nominal interest rate. Moreover, the repayment time is also long enough so that the client easily pays it. 

What are Home Loans?

In simple words, a home loan is money you take as a loan to buy a house or fulfill the housing needs like buying an accommodation to live in, buying land property to build, constructing a house for living, or buying a personal flat or apartment. This amount of money taken as a loan is taken in return for collateral. Here collateral could be anything like your property, part of income, etc. this collateral ensures the return of the home loan the customer takes, or else the collateral is kept wholly by the lender.

Types of home loans

There are many types of home loans such as:

• Basic home loan
• Home improvement loan
• Home construction loan
• PMAY
• Home loan balance transfer

The customer can choose accordingly depending on the situation they need to accomplish for their house. The loans above mentioned serve different purposes and hence it solely depends on the interest rates which differ.

More about Personal Loans HDFC

One of the leading lenders to get loans from is the HDFC Bank. the HDFC bank provides many types of financial assistance and loans to their customer especially personal loans HDFC with reasonable interest rates and a convenient process to take. 

Personal loans are the type of loans which a customer takes to fulfill or accomplish any personal needs, it could be anything like repairing of house, organizing any functions such as a wedding, it could be any emergencies persisting. Moreover, the situations like traveling, any kind of repayments or buying cars, etc. can also lead a person to apply for a personal loan.

The most special thing about the personal loans HDFC is that, unlike other loans where the customer needs to offer collateral as a security, in the case of personal loans the customer need not give anything as collateral. Furthermore, the process to get personal loans is also one of the simplest as compared to other loans where a lot of documentation process is needed.

Additionally, if taking a look at the repayment, when there is not even collateral, this personal loan is repaid to the lender in terms of EMI which is equated with Monthly Instalments. This EMI system allows the debit from your bank account each month as per the EMI plan you decide and in a certain amount of time. 

What Are Home Loans Eligibility?

Home loans are one of the most preferred loans by almost everyone to buy a housing facility for themselves. But the thing is not everyone can apply for home loans. The process of getting home loans is not so easy, a lot of documentation, verification is needed, the concepts like interest rates, processing fees, charges for the prepayments, etc also contribute to the process to get the home loans and above all, there is a set eligibility criterion for the customers to apply for the home loans. Although, home loan eligibility is the term associated with the set of rules or parameters that one needs to fulfill before applying for the home loans and ensure that the loan they are applying for will be repaid and they do have the source to repay in the tenure specified. The criteria may differ from bank to bank or lender to lender. But the general home loan eligibility for the customers is as follows:

• A customer must be between the age of 18 to 70 years.
• A person must either be employed or self-employed to get a home loan.
• The eligibility also depends on the income you have. More the income according to a formula, the more the amount of loan you can get.
• The parameter for the eligibility is also your capacity to repay and your credit history or even the financial position you own.

Conclusion

Home loans can be one of the ways to complete your wish to own a house. Although there are certain parameters to be fulfilled before applying for the home loan these can also be completed by adding another family member as the co-applicants, planning a strategy to repay, giving all correct details about the extra income and there are many such ways which can help you get eligible for the home loans legally.