Enquire Now


  • Types of Home Loans in India
    August 11, 2017

    Types of Home Loans in India

    The decision to build or purchase a new house essentially comes with doubts and concerns regarding various home loans available.

    Here is a brief about 5 popular types of home loans available in India.

    Home Purchase Loans

    Home purchase loans are the most commonly available variant of home loans in financial market. Banks generally offer up to 85% of the market value of the house as loans while salaried borrowers may get a higher amount sanctioned if they show their performance related income. Moreover, both the principal amount and the interest on loan are deductible while computing the income tax.

    Home Construction Loans

    Home construction loans are slightly different from home purchase loans. The loan amount sanctioned is decided based on a rough estimate of the construction cost (which doesn’t include works like painting, furniture, cupboards, plumbing, lighting etc.). Loan sanctioning requires the applicant to submit sales deed, approved building plan, NOC from the respective authority and any change in the approved plan while construction or any kind of violation of law will result in the bank freezing the loan amount. Also, loan amount disbursement mostly occurs in instalments as per the progress of the construction.

    Home Improvement Loan

    This kind of loan is designed to help you fund renovation of the house you own, it’s given for up to 15 years and can be applied by anyone who is at least 21 years old (and own the house). Home improvement loans can include home essentials like bathroom fittings, furniture etc., apart from major renovation works. It should also be noted that, the repayment of loan will continue even if the property is destroyed by any natural calamity.

    Land Purchase Loans

    Land purchase loans are available for plots located within the corporation or municipal limits and they have a lower LTV (loan to value) of 70%. These loans don’t give tax benefits to the borrower unless the construction of property is completed within the stipulated time. Additionally, land purchase loans are given up to a 15 years tenure and most of the banks do not render this service to NRIs.

    NRI Home Loans

    NRI home loans are specifically designed to cater to the requirements of NRIs. They are provided by all leading banks of the country and unlike other home loans, NRI loans have special procedures and formalities to be followed.

    Ladder Mankav Greens is a flagship project of Ladder Kerala, one of the most trusted builders of Calicut with a wide choice of luxury apartments and flats in Calicut and an exciting offer of 4.99% interest on home loans.