Bank
loans in India
can be divided
into several
categories.
One of the
most common
is the lending
of home loans.
Housing loans
can be classified
into Home
Loans, Home
Extension
loans, Home
Improvement
Loans, Home
Loans purchase,
purchase of
land loans,
Upper loans,
short-term
loans and
loans to professionals
for non-residential
premises loans.
We will discuss
the home loans
offered by
banks in this
section. Home
loans are
used by customers
when they
mortgage their
property to
the bank where
they borrow
money for
other purposes.
Banks take
an assessment
of the market
value of
the property
they are
keeping
mortgage.
The home
equity loans
or HEL majorly
are taken
for medical
purposes
such as
bills, marriage
and education.
The loans
are, however,
given to
the legal
title holders
and the
land they
hold mortgage
must be
free of
all disputes.
Home loans
are of two
types of
closed-end
home loan
and open
end home
loans. Two
of them
are second
mortgages
that are
guaranteed
where credit
is generally
shorter
period than
the first
mortgage.
There are
loans where
you can
borrow a
lump sum
at a time
and can
not borrow
others and
can be amortized
over 15
years. The
Open end
home loan
is where
you are
free to
choose when
and how
often you
need to
borrow money.
Some of
the most
recognized
banks offer
home loans.
These include
HDFC Bank,
ICICI Bank,
Bank of
India, Standard
Chartered,
IDBI Bank,
State Bank
of India,
Union Bank
of India,
UCO Bank,
Bank of
Baroda Citibank
and Bank
of Development
Credit.
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