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Home Loan is offered to individuals who wish to purchase or construct a house. The property is mortgaged to the lender as a security till the repayment of the loan. Loan acquired from a financial institution to purchase a home. Home loans may also be referred to as mortgage loans. Read out more about different types of home loans.
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What is house loan?? • Acquiring a home which you can proudly call as your “Own House” is a life-time decision. • Home Loan is offered to individuals who wish to purchase or construct a house. The property is mortgaged to the lender as a security till the repayment of the loan.
Importance of Home Loan • The need for home loans arises not because property prices are heading upwards all the time but because home loans make great sense from a long-term savings perspective. • Not only are home loans a handy tool for the common man to own a roof over his head but they also help save money in the long run. • With skyrocketing real estate prices, people are increasingly opting for housing loans to acquire their dream home. • Interest rates are coming 76 down all the time and the banks and the housing finance companies are literally falling over each other to lure the prospective home-seekers. • Even if one can afford to buy a home with one's own money, home loans should be availed because they act as good savings instrument.
Types of Retail Loans • Home Loan • Home Loans to NRIs / PIOs • Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) • Loan Against Future Rent Receivables • Mortgage Loan • Education Loan • Car Loan • Two Wheeler Loan • Loan to Professionals • Traders Loan • Personal Loan 12. Reverse Mortgage Loan
Types of Home Loan • Home Purchase Loan • Home Improvement Loan • Home Construction Loan • Home Extension Loan • Land Purchase Loan • NRI Home Loan
Elements to Determine Cost of the House • Readymade Properties • Self-Constructed Properties
HOME INSURANCE • After sanctioning home loan one needs to insure it against future risks and perils. • Besides natural calamities such as cyclones and earthquakes, man-made disasters, too, pose significant threats to residential properties. • Here comes the use of home insurance policy. • In the present time, a number of insurance companies and banks are coming up with attractive home insurance policies, which provide cover for the property in case of all the aforementioned hazards.