Epocket Guide

Top Menu

  • Drop Us Email

Main Menu

  • Home
  • Credit
  • Finance
  • Investment
  • Loan
  • Money Saving
  • Mortgage
  • Trading
  • Drop Us Email

logo

Epocket Guide

  • Home
  • Credit
  • Finance
  • Investment
  • Loan
  • Money Saving
  • Mortgage
  • Trading
Loan
Home›Loan›Understanding the Difference between Home Loan & Home Construction Loan

Understanding the Difference between Home Loan & Home Construction Loan

By Joshua Freddie
May 25, 2019
1348
0
Share:

A home loan is a credit that individuals receive for the sole purpose of purchasing a house. The housing loan interest rate will vary across different financial institutions and monthly EMI payments are expected to be made on time. The property that you buy with your home loan can be either used for personal or business purposes. Banks will treat the purchased property as security until the whole borrowed amount along with the interest is paid-off in full.

If you own a plot of land and plan on building a house on it, then a home construction loan is the best option. This type of credit is generally short-term and is also provided if you want to expand on your already existing house. Let’s consider the differences between these two types of loans in the subsequent points.

  • Application Process

The paperwork required for a home loan is far less than the number of documents required for a house construction loan. This renders the latter’s application process much more complex than the former. Thanks to the advances in technology, you can apply for these kinds of loans online, which makes the procedure hassle-free.

  • Tenure

You can repay your home loan over a maximum period of 30 years. However, the upper limit of the house construction loan tenure is 15 years. The greater the repayment period, the smaller the monthly EMI. Thus, with regards to the time-period, home loan gains the upper hand.

  • Interest Rate

The options available with regards to house construction loans are extremely limited as compared to home loans. This implies that your home loan interest rates will be much lower as compared to home construction finances. To put it more simply, the high competitiveness among the housing loan companies is actually beneficial for the clients.

  • Tax Benefits

You can avail income tax benefits on both, the interest and principal amount borrowed for the house loan. Such benefits are also provided by home construction loans, but the process of availing them is quite lengthy and arduous. This makes obtaining a home loan extremely advantageous.

Once you have decided to apply for a home loan, make sure to organise all your paperwork for submission. You can apply for home loan online by filling out a simple form. The housing loan eligibility criteria states that you should be at least 23 years old and no more than 70, either be salaried or self-employed, possess clean records with regards to past debt repayment, have a good credit score, and have at least 3 years of total work experience. The documents required for home loan are as follows: ID proof with photograph, residential address proof, income proof, property proof, and lastly, business proof.

Previous Article

Best Funds For a Small Investment

Next Article

4-Step Guide to Getting a Used Car ...

Share:

Related articles More from author

  • Loan

    How to Find a Reputable Online Alternative Lender

    September 17, 2020
    By Joshua Freddie
  • Loan

    4-Step Guide to Getting a Used Car Loan for Single Income Earners

    May 25, 2019
    By Joshua Freddie
  • Loan

    Unsecured Loans Offer Many Financial Solutions

    July 10, 2018
    By Joshua Freddie
  • Loan

    Student Loan Consolidation Rates – Could It Be Best For You?

    April 19, 2018
    By Joshua Freddie
  • Loan

    Should you pay off credit card dues with a personal loan?

    July 5, 2019
    By Joshua Freddie
  • Loan

    Guaranteed Loans Aren’t For Everyone

    June 15, 2018
    By Joshua Freddie

Comments are closed.

  • Finance

    How Payroll and Cash Flow Can Kill a Construction Company

  • Finance

    Strategies for Selecting Affordable Organic SEO Providers

  • Money Saving

    Do you know about the impressive features of PayNow?

  • Recent

  • Popular

  • Comments

  • The Neo Bank Is Much More Than Just A Traditional Bank

    By Joshua Freddie
    March 13, 2023
  • What Are Slick Cash Loan Payday Loans And Their Advantages?

    By Joshua Freddie
    March 4, 2023
  • Why Forex Trading Is A Lucrative Option?

    By Joshua Freddie
    February 10, 2023
  • What’s A PAMM Account? Here’s All You Need To Know

    By Joshua Freddie
    February 3, 2023
  • 3 Financial Consideration To Think About Before Selling Your Home

    By Joshua Freddie
    January 18, 2023
  • The Neo Bank Is Much More Than Just A Traditional Bank

    By Joshua Freddie
    March 13, 2023
  • Rebuild Your Credit The Proper Way

    By Joshua Freddie
    January 19, 2018
  • Place Your Existence Back in line by Rebuilding Your Credit

    By Joshua Freddie
    January 29, 2018
  • Credit Improvement – A Real Possibility for Individuals With Poor Credit Scores

    By Joshua Freddie
    February 9, 2018
  • Poor Credit Cleanup – How you can Eliminate Bad Debt Using Effective Credit Improvement Methods

    By Joshua Freddie
    February 19, 2018

Archives

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • August 2022
  • June 2022
  • April 2022
  • March 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • July 2020
  • April 2020
  • December 2019
  • November 2019
  • October 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • January 2019
  • November 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018

Recent Posts

  • The Neo Bank Is Much More Than Just A Traditional Bank
  • What Are Slick Cash Loan Payday Loans And Their Advantages?
  • Why Forex Trading Is A Lucrative Option?
  • What’s A PAMM Account? Here’s All You Need To Know
  • 3 Financial Consideration To Think About Before Selling Your Home
March 2023
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
2728293031  
« Feb    
  • Home
  • Credit
  • Finance
  • Investment
  • Loan
  • Money Saving
  • Mortgage
  • Trading
© 2022- Epocket Guide. All Rights Reserved.