A home loan is an amount of money borrowed by the individual from a bank at a certain rate of interest to be paid with EMI every month. The property is taken as a security by the bank for the home loan. The property can be either commercial or personal in nature, and if the lender fails to pay his dues on time, the bank may recover the outstanding loan by selling the property in question. Get yourself your own place to call home with Christmas loans for unemployed as they give an attractive rate of interest which fits in your budget.
Types of Home loans
Home purchase loan: This is a type of loan taken for purchasing of a home
Home improvement loan: This is a type of loan covers expenditure related to repairs of your home
Home construction loan: This a type of loan which comes in handy when building a new house
Land Purchase Loan: A type of loan to buy a plot of land for constructing a new home
Home Extension Loan: If you plan to add a room or bathroom this loan can provide with the funds involved
Join Home Loan: Loan is taken by two people for home loans
Home Loan Balance Transfer: You can use this to transfer the outstanding loan amount to a different lender with better terms and conditions
Top up Home Loan: A loan that helps you borrow money above the outstanding loan amount.
Benefits of home loans
Tax benefits: any individual with a salary can take up this loan to buy their own house, and they can claim it in their income to deduct the amount spent.
Tax benefits of the second house: you are automatically eligible to claim a deduction for the entire amount of housing loan interest for your second loan
No prepayment charges: There are no prepayment penalties for floating rate home loans so you can use the surplus money to make it a part of payment towards your home loan
Balance transfer facility: You have the facility to transfer your home loan to a different lender if you receive a lower interest rate. always check you balance transfer calculator to know how beneficial it will be for you to transfer the loan amount
Make it easier to buy your dream house: For many people buying a house with their own money is not possible so home loan as it can be repaid in monthly instalments.
Long repayment tenure: Home loan has the longest repayment tenure which goes for up to 30 years, you can reduce the burden of equated monthly instalments by extending the tenure.
Enjoy capital appreciation: You will benefit from the rise in prices of the property over time.
Saves you from paying rent: rent can put a strain on your monthly budget, and it is better to pay EMI and own your own house.