Along with increasing property prices, home loan rates are also increasing, because of this common people are facing difficulties in purchasing their dream house. People has to be satisfied by purchasing a small house and have to be wait for a long time to buy their house. Many home loan companies have started offering a variety of home loans according to the needs of home loan borrowers to help them in buying a home. Let’s tell you about these new home loans.
Step up home loan: A step-up home loan enables you to take more loans from your loan qualification under a regular home loan. This option is beneficial for home loan borrowers who can not afford more EMI at the beginning of their career, so they can not complete eligibility criteria to get home loan approval. This option allows a buyer who buys a home to fill a low EMI in the beginning year, and the amount of EMI increases in subsequent years. This loan is given in view of the anticipated increase in earnings. A major bank gives you a step-up home loan for a period of 20 years at the same rate as the standard home loan.
Home loan with overdraft facility: After taking home loan, you can think of getting rid of this loan as soon as possible. For this, you can use your surplus income to make your loan prepayment and reduce your loan tenure. Of course this will help in reduce your liability faster but once the pre-payment is made, the money will not come back to you. Here a home loan overdraft prove helpful. With the help of this product, the loan company links your normal savings / current account with your home loan account and considers your savings as a prepayment in the account, so that the interest on the loan is greatly saved. Later, if you need money, you can withdraw money from your account with great comfort and the loan balance and interest will be adjust by the same amount.
If you are getting a large amount time to time than your home loan with an overdraft facility you can save a lot of interest. This is particularly useful for businessmen whose income is irregular or uncertain, and those who may need their money back from time to time. But to take maximum advantage of this option, you must definitely check whether you will get an additional amount in the future.In the case of home loan with overdraft facility, the additional amount deposited does not get tax benefit under section 80 (C),because income tax is not considered this money as pre-payment of home loan.
Home loan for pensioners: As it seems by the name, this home loan is for pensioners who may not be eligible for a standard home loan. Generally, when pensioners and retired people face such a situation, they may include a co-borrower to increase the loan amount or find a low-cost property. But many bank and loan companies have started offering home loans to pensioners who have a final age of up to 76 years of repayment. The loan term is determined by the loan company.Money of EMI is deducted directly from the pensioner’s pension account. Inspite of low loan amount, you can add some extra money to fulfill the desire to buy a house. But while taking this type of loan it must be sure that you can pay EMI from your pension without affecting your normal expenses.
Other Types of Home Loans: Suppose you are the middle age 48 year old buyer. Most banks will loan you for a maximum of 12 years in view of your retirement after 60 years as your retirement year. The amount of EMI increases due to such a low loan period, so that the borrower may have difficulty in repaying the loan. To deal with this problem, some bank or loan companies provide additional loan duration to middle-aged borrowers. Which increases their loan period after the age of 60 years. Due to such a home loan, the applicant can easily stand on the eligibility criteria and easily make the EMI payable. There is another home loan product that some EMI waives after repaying all installments on time. If you want to apply for a home loan,so check this kind of home loan well and choose a suitable home loan as per your need.