|WHY TAKE A HOME LOAN?
an average Indian's most cherished dream?
A world trip with Aishwarya Rai would seem
to be the answer as seen from the various
episodes of Kaun Banega Crorepati (KBC)! Jokes
apart, moving into their dream house would
rank among the top three things on the wish
list of most people. After all, there's nothing
like having a roof, particularly one's own,
over one's head. All that house hunting every
few years, grumpy landlords, killing rents
would be a thing of the past. Hey, you even
get to use nails to hang your favorite paintings
Taking a home loan nowadays has many
Added to this, the RBI has been regularly
slashing interest rates, with the result
that housing finance loans that came at
an interest rate of 16.5% to 18% four years
ago are now available at 11.5% to 13% or
lower. Each year the Finance Minister's
largesse during the Budget seems to be solely
concentrated for the housing sector and
The Budget 2000's allowed interest payment
upto Rs 1 lakh and principal payment of
Rs 20,000 to be exempted from income tax.
To top it all, the Housing Finance Companies
(HFCs) are aggressively wooing customers.
When EVERYTHING seems to be on a roll, make
the best of the situation.
WHAT ALL CAN I TAKE A LOAN FOR?
are different types of home loans tailored
to meet your needs. Heres a dekko of
some of them:
is the basic home loan for the purchase of
a new home.
loans are given for implementing repair
works and renovations in a home that
already been purchased by you.
This loan is available for the construction
of a new home.
This is given for expanding or extending
an existing home. For eg: addition of an
is available for those who have financed
the present home with a home loan and wish
to purchase and move to another home for
which some extra funds are required. Through
home conversion loan, the existing loan
is transferred to the new home including
the extra amount required, eliminating the
need of pre-payment of the previous loan.
This loan is available for purchase of land
for both construction or investment purposes.
loans are designed for people who wish to
sell the existing home and purchase another
one. The bridge loans help finance the new
home, until a buyer is found for the home.