Different Kinds of Loans and Their Ultimate Benefits

Different Kinds of Loans and Their Ultimate Benefits

Sometimes, taking a loan could be the top-most priority for someone, who is planning to make a major investment like buying an apartment in Kolkata, et al. Taking a loan may create a lot of confusions and tensions especially for the one, who lacks a prior experience regarding the same. Are you looking to buy a new home? Whether it’s a luxurious apartment or a small residential space, there is a home loan for every requirement. A loan refers to the money lent to someone by a financial organization or a bank at an interest rate. Read the following write-up to get acquainted with various types of loans –

• Loan for Buying a Home

Home-loan is probably the most popular out of all other variants of loans available in the market today. Someone who is looking to buy a residential space is eligible to apply for this loan. Banks can offer up to 80% of the entire market value of a flat as a loan amount. The interest rate on home loans could be either hybrid, fixed or floating.

• Loan for Home Construction

Banks can issue this type of loan to an applicant, who is looking to construct a house on land owned or even co-owned by them. The application, as well as, approval procedures for this kind of loan may vary in certain aspects.  To be able to vouch for a home construction loan, the applicant needs to buy a land or construction plot within a year. The applicant needs to make an estimation of the expenses, which would be incurred for constructing a house. In case, the total cost of land is not included in the total amount of a loan, the estimation for house construction will be taken into consideration.

• Loan for Home Improvement

Does your old flat in Kolkata require a renovation? Is your plummeting fund or budget holding you back from taking the plunge? Maybe, you should apply for a home improvement loan to meet the need. Renovating a house includes repairing certain portions of an existing house, fixing the wall-paints, electrical wiring, waterproofing, etc.

• Loan for Home Extension

A home-extension loan can be taken by someone who is looking to extend or expand his/her already existing residences. Some financial institutions may differentiate this loan depending on the objective of the expansion of the existing houses. Most of the banks may include this kind of loan as an integral part of home-improvement loans.

• Home Conversion Loan

Are you planning to move into a new 2 and 3 BHK flat in Kolkata? You have an existing house, but still, you want to move into a new house? This is where the home-conversion loans come into play. If you lack enough funds or monetary backup to move into a new property from your old house, then you may apply for a home conversion loan.

• Loan for Buying a Land

Generally, banks or non-banking financial organizations provide land purchase loans. This loan is required to purchase land or property on which a loan applicant can build a house. Usually, a bank can lend up to 75-85% of the total price of a land or construction plot.

Buying a Home is Easier than Ever

Thanks to these wide varieties of loans, buying a home has become easier than ever. Are you on a lookout for a good residential property anywhere in Kolkata? Is there a budget that you need to stick to? Perhaps, you can count on Haarway to gather all the necessary information or guidelines in this regard. By connecting you to the best property-owners of Kolkata, Haarway will help you buy your dream house sans any hassle.