From Dream to Reality, Exploring Loans That Benefit Homebuyers – News18

Inflation has caused a significant surge in market prices, making the dream of owning a house seem out of reach for many. In such scenarios, home loans have emerged as a viable solution, allowing aspiring homeowners to navigate the rising expenses. With numerous options available from national and private banks, as well as non-banking financial institutions, home loans have become a lifeline for investors looking to realize their homeownership dreams.

Home loans typically come with extended tenures, often spanning up to 30 years. While these extended loan terms may seem daunting due to the potentially heavy costs involved, borrowers can take control of their finances by selecting the right type of loan.

In the face of inflation, interest rates can play a crucial role in determining the overall cost of a home loan. Choosing the appropriate type of loan can help borrowers cut down on interest rates and make their homeownership journey more manageable.

There are different types of home loans available but among which the most beneficial home loans are home purchase loans and home construction loans. Apart from this, home loans like land purchase loans, home extension loans, home improvement loans, home conversion loans, and home construction loans are available.

The rate of interest to be paid for each loan differs from bank to bank. Banks provide loans easily but the interest rate might not be beneficial to you. Banks like the Bank of Baroda, HDFC home loans, ICICI Bank, SBI home loans, Citibank, Kotak Mahindra Bank, and others provide home loans.

State Bank of India provides 90% of the property’s cost at an 8.50% interest rate p.a for a tenure of 30 years. The bank also offers special home loans for government employees, defence personnel, or applicants residing in hilly or tribal areas. HDFC bank provides home loans at 8.40% interest rate p.a onwards a tenure of almost 30 years and amounts up to Rs 10 crores. ICICI bank home loans start at 9.00% interest rate p.a for a tenure of up to 30 years and amount to up to Rs. 10 crores.

As home loans come with a huge amount to be paid, people usually choose to take up a single home loan but, in a few cases, some people take up a second home loan. If the applicants have a good credit score, then only they will be allowed to issue another home loan. It also depends on the source of income and the capacity to repay the loan. It is always suggested to issue loans, after consulting mentors or guides. The applicant can also visit the nearest bank to know further details.