5 Home Loan Options that You were Unaware of
Buying a Home Loan can be a tricky process, especially if you are not well-aware of the various options available to you. If you think that low interest rate is all that matters, you are definitely wrong. There are a lot more things you should know before taking a Home Loan. There are many financiers who offer various Home Loan options in India. Bajaj Finserv, for instance, ensures flexibility in providing Home Loans. Here is a list of options that suits people with different requirements:
Home Loan Options Available in India
- Flexi Loans
Flexi loan is a smart payment option in which your loan account is linked to your current account. The loan amount will be withdrawn from your current account till you reach the sanctioned limit. One important advantage of this option is that it allows you to draw money according to your requirement. The repayment of the loan is through the interest that you receive from the current account. Thus, it acts as an overdraft account, where you can also add your surplus income as well as savings. Bajaj Finserv provides Flexi Loans with multiple benefits and low interest rates.
- Second Mortgage
Suppose your first mortgage amount gets used up during the process of buying a new home, and you have no balance to spend for the rest of your purchases, including interior decorations and furniture. In that case, the second mortgage or the pari passu mortgage is the best option to go for. This type of loan allows you to mortgage the same property with different banks to borrow the required money.
- Teaser Loan Option
Teaser loans were introduced to cope with the fluctuating economy. In this, the bank charges a fixed rate of interest for a tenure of two to three years, and after this period, the fixed Home Loan interest rate changes to floating interest rate. Teaser loan can be beneficial for you if the interest rates in the future tend to rise above the prevailing Home Loan interest rates.
- Proportionate Release Option
If you are planning to buy a property from a reputed builder, there is a fair chance that you can get proportionate release option from your bank. In this option, the loan amount gets disbursed in instalments to pay the builders before the due dates. This type of loan allows you to manage your investments and raise fund for financing the down payment, especially when you do not have enough money to buy the property.
- Bridge Loan
Bridge loan is an ideal financing option if you are planning to buy a new property after selling your existing one. It allows you to fund the down payment for your new house, while you sell your existing property. This loan usually has a tenure of one to three years, and is a cheaper substitute to personal loans. You can pay back the amount to the bank after selling the property within the tenure. If selling the property takes longer, you can also convert this loan to a mortgage loan conveniently.
Once you have a clear idea about the different loan options available, check out the wide variety of options provided by Bajaj Finserv and choose the one that fits your requirement the best.
Consider opting for an FD account with Bajaj Finance, as it offers high interest rates and checks all the right boxes.