All individuals dream of building a house of their own. Almost always, funding the project is their biggest concern. Fortunately for you, there are many home loans available in India to meet your financial needs. Whether you are constructing a house on a piece of land or buying a flat in a modern complex, you will find plenty of financing options.
Depending on the nature of construction and the costs involved, lenders will offer you a sum to pay back in monthly installments (EMIs). Here are some of the most easily available loans for building a home in India.
Pradhan Mantri Awas Yojna (PMAY)
High home loan interest rates often make purchasing a home unaffordable for many buyers. Thus, the Government of India offers subsidized rates under the Pradhan Mantri Awas Yojna. Depending on the income category you fall in, you can save a considerable amount on your loan under the PMAY scheme.
Home Improvement Loans
Not all borrowers seek loans to purchase a new home. Some are also looking to renovate the house or make additions to an existing structure. Home improvement loans are meant for such purposes. Because different lenders offer varying interest rates, it is important to understand which one would suit you best depending on the degree of improvement you seek.
Land Purchase Loans
If you would like to purchase a piece of land to construct a house on it, land purchase loans are perfect for you. Additionally, these loans can also be availed if you want to purchase land as an investment.
Home Construction Loans
As is evident from the name, these loans are offered to individuals who wish to construct a house. However, such loans are offered for construction on a piece of land that you already own.
NRI Home Loans
You do not have to be a resident of India to avail of a loan from an Indian financial institution. Non-resident Indians who wish to purchase a home in India are eligible to apply for NRI home loans. These loans help NRIs own a home in India.
Home Loan Balance Transfer
Upon availing of a loan, you also have the option to switch lenders. A balance transfer is a perfect option if you are still early on in your repayment journey and have found a better interest rate elsewhere. By doing so, you can fulfill your debt obligations faster and ultimately spend less on the house purchase.
Apart from the above, lenders also offer other types of housing loans. The eligibility criteria vary across lenders. Factors such as your age and income come into play for loan eligibility and approval. These will also affect the final interest rate you are offered.
However, even as you meet the eligibility criteria, it is necessary to compare loan products by different lenders to pick the most suitable one. In fact, you can use easily available home loan EMI calculators to understand your monthly installments and if you can pay them with ease.