Outlook Money
In this type of loan, the lender provides the funds to purchase a property based on its market value, while the borrower repays the amount in equated monthly instalments over the long term.
Unlike loans for home purchase, which the borrower receives in a lump sum payment, home construction loans are typically disbursed in instalments based on the project’s progress.
Home extension or improvement loans are popular options for adding rooms or floors to an existing home, but they can be costly.
If you have already taken a home loan and are currently repaying it, you can switch to a different lender for a lower interest rate.
It is a credit-linked subsidy scheme under the government’s Pradhan Mantri Awas Yojana (PMAY) initiative to financially support first-time homeowners.
A reverse mortgage is designed for senior citizens. It allows them to secure a loan based on the property’s value without requiring them to pay EMIs for the lifetime, provided they live in the same house.
Compiled By Himani Verma