Different Types of home loan

5 Different Types Home Loans by Poonawalla Housing Finance

Many home buyers postponed their decision to buy a house in 2020 due to the pandemic. But now, in the backdrop of subsiding Covid-19 fear, along with improving job prospects and reinstated salaries, real estate experts have suggested not to postpone home-buying decisions any further. Declining housing prices, a sharp rise in income levels, and home loans with low-interest rates have boosted home affordability. Thus, it is the perfect time to buy your dream home and increase your homebuying budget with the best home loan offerings from Poonawalla Housing Finance.

Understanding the importance of a loan

When you plan to invest in something big, it may not always be possible to liquidate your savings or set funds aside from your monthly income. In such situations, individuals and firms prefer to borrow from a bank or non-banking financial institution.

Lending is the process of borrowing money from a financier with the commitment to repay a fixed sum of money on a regular basis, at a fixed rate of interest. Since the entire lending process depends on the terms and interest rates offered by the lender, it is advisable to choose a reputed lender.

Can a home loan be affordable?

This is the very first question that we consider, when planning to take a home loan. Like many others, you may be looking to own a home by taking a home loan at lower interest rates, before the lowered property prices rise again.

Hence, before applying for a home loan, make sure you’re prepared and are clear about finances and life goals. Make a list of emergency funds, down payments, EMIs, and the status of your financial goals so that simplify the repayment of a home loan by devising the best strategy. Additionally, consider comparing interest rates across different lenders, so you can get the best rates. It is important to read the fine print, so you understand the terms and conditions properly.

What expenses can be funded with a home loan?

It is important to understand the loan amount you need, to fund any housing expenses. Here’s a look at the different expenses you can fund, by taking a housing loan:

  • Buying an existing or a new home
  • Extending or upgrading a housing unit
  • Home renovations for an existing home
  • Buying a plot to construct a new house

Home loans schemes: Types of loans offered by Poonawalla Housing Finance

Poonawalla Housing Finance offers a wide array of customised home loans to meet your unique home loan requirements.

Here’s a detailed look at different types of home loans offered by Poonawalla Housing Finance you can choose from:

  • Regular home loans: When you plan to buy a property that is already constructed, newly constructed or under construction, then you should choose a regular home loan. You can also apply for a regular home loan for buying a pre-existing property. The best bit is you can take a home loan to fulfil your housing finance needs at the lowest interest rates.

  • Home improvement loan: This loan works when you want to upgrade your existing property like interior redesigning, transforming it into a smart home using smart technology, remodelling the kitchen, or regular maintenance. Refurbish your home with Poonawalla Housing Finance Home Improvement Loan.

  • Home extension loan: Be it constructing a new bedroom, converting your backyard or balcony to an increased living space, or simply expanding your mansion, you can now create the space your family needs, with Poonawalla Housing Finance Home Extension Loan. Finance your house expansion project with our customised home extension loan.

  • Home construction loan: Building your own home from the scratch requires huge funds as it includes buying a plot to construct a house. Our affordable loan offering makes your journey of buying a home possible at competitive interest rates. This loan lets you purchase a piece of land that gives you the freedom to build a house as per your needs. Moreover, you can purchase a piece of property for investment or commercial purposes and sell it for a profit later.

  • Top-up loan: You can avail of a top-up loan to get funds for your emergency financial needs on your existing loan with hassle-free documentation.

  • Home loan balance transfer: The facility to transfer your outstanding home loan to us at lower interest rates, can help you reduce the burden of high EMIs. Thus, by choosing our low-interest home loan, you can ease off your debt.

How our home loans help you in the long run?

Taking a home loan from the right lender is a big decision that is equivalent to buying a home. With Poonawalla Housing Finance, you can achieve your dream of owning a home with the best home loan offering.

Our tailor-made home loans are full of benefits and privileges that have been listed below:

  • Home loans for your housing needs: Whether you want to buy a home or build a new one, our feature-rich home loan schemes are designed to cater to all your housing needs.

  • Affordable housing loans: Our home loans can even be availed by lower-income sections to fulfil their dreams of buying a home. You can avail of our home loans that start from as low as Rs. 5 lakh.

  • Flexible, longer repayment tenure: It is the period of time during which the borrower is liable to repay the entire loan amount along with interest and it starts right from the date of disbursal. You can choose comfortable repayment tenure as per your source of income.

  • Pradhan Mantri Awas Yojana (PMAY): With the Government’s PMAY scheme, buying a home is much easier for prospective first-time homebuyers with a maximum interest subsidy of up to Rs. 2.67 lakh based on your eligibility.

  • Minimal documentation: At Poonawalla Housing Finance, we prefer to keep the documentation process as simple as it gets. For existing customers, there is no requirement for documentation.

  • Competitive interest rates: We offer home loans at attractive interest rates starting at @9.50% p.a. At such affordable interest rates, repayment is easier, and you can fund your dream home while reducing your EMI burden.

  • End-to-end doorstep service: Our dedicated relationship managers ensure an end-to-end support without any hassles, so your lending processes are simpler than ever.

  • Home loan EMI calculator: With our online EMI calculator, you can calculate your home loan EMI and apply for a loan as per your budget, eligibility, and requirement. Simply enter your principal amount, rate of interest, tenure, and your EMI amounts are displayed right on your screen.

  • Foreclosure charges: We do not apply any foreclosure charges on floating rate home loans. However, charges may be applicable for fixed-rate home loans that may vary as per the loan terms and conditions.

  • Processing fee: We levy a processing fee as low as 1-2% of the loan amount in addition to the GST.

  • Zero hidden charges: Our loan processing applications are completely transparent with zero hidden charges. You can partner with us to achieve your dreams.

  • Tax saver: Several tax benefits can relieve a home loan borrower under the Indian Income Tax Act, 1961. Under section 80C, tax deduction on the principal amount is up to Rs. 1.5 lakh. A home loan borrower is entitled to claim a tax deduction of up to Rs. 2 lakh on the interest amount payable under section 24.
    Section 80EE is beneficial for first-time homebuyers where they can claim additional home loan interest benefits of up to Rs. 50,000.

Eligibility requirements for Poonawalla Housing Finance Home Loan

Your eligibility for home loans depends on the following factors:

  • Age: Your home loan approval chances depends mainly on your age. If you’re closer to the minimum age requirement, the chances of home loan approval are brighter. If you’re near your retirement age, the possibilities of home loan rejection are higher.

  • CIBIL score: It determines your creditworthiness that may affect your home loan eligibility. A CIBIL score ranging from 650 to 749 is considered good and brightens your chances of quicker home loan approval.

  • Income and profession: The home loan eligibility criteria is different for salaried and self-employed applicants, as well as their respective annual income.

  • Other existing debt obligations: If by any chance, you miss your EMI, it may affect your eligibility in future. Hence, it is imperative to clear your dues before you apply for a home loan.

For salaried applicants, the eligibility criteria is provided below:

  • The minimum and maximum age should be 21 and 65 years respectively.
  • The applicant should have a stable source of income which is Rs. 20,000 per month.
  • The applicant must hold Indian citizenship.
  • The applicant must have a minimum of one year of experience.

For self-employed individuals, the home loan eligibility criteria is as mentioned below:

  • The minimum age should be 21 years while the maximum age should be 65 years.
  • Gross annual income should be a minimum of Rs. 3 lakh.
  • The individual must hold Indian citizenship.
  • Minimum two years in current business or profession.

Submit minimum documents to apply for Poonawalla Housing Finance Home Loan

At Poonawalla Housing Finance, we keep the documentation requirement as minimal as possible to reduce the loan processing time.

  • Identity documents: A copy of PAN card, Aadhaar card, passport, driving license, voter’s card, employment card signed by NREGA.

  • Address proof: PAN card, Aadhaar card, passport, driving license, voter’s card, employment card signed by NREGA, and Letter issued by the National Population Register containing details of name and address.

  • Income proof: It differs based on the applicant’s profile. It includes the latest 3 months salary slip, form 16 for salaried applicants and Income Tax Returns along with computation for the last 2 years, Profit/Loss statement and balance sheet for the last 2 years for self-employed individuals.

  • Bank account statement: Operative bank account statements for the last 6 months.

You also need to submit property documents, along with the legal and technical clearances of the property.

The above-mentioned list of documents is indicative and additional documents may be required to carry out the loan processing application.

How to get started?

If you’re looking to get started with our housing loans, here are the next steps:

  • Calculate your budget by using our online EMI calculator to determine the EMI outgo
  • Visit our website to apply for the loan that suits your needs best
  • Our representative will get in touch with you for your financing needs
  • Submit the documents requested and you’ll receive your approval shortly

Your funds will be disbursed upon approval. Repay the loan amount with affordable EMIs.

A home loan turns your idea of owning a dream home into life. Choosing the right lender wisely helps you buy a forever home. Make the right choice with Poonawalla Housing Finance, and enjoy a worry-free loan experience.

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