Different Types of Home Loan
By Dilip V Mohan
If you plan to buy your dream home, then many different schemes lead to it:
1. Home-Loan: It is a term loan scheme with Equated Monthly Installments (EMIs) under fixed or floating rate of interest.
2. Overdraft-Loan: It is a home loan in the form of current account overdraft where you can park your surplus funds and thus minimize the interest burden – overdraft limit is reduced every month as per the EMI amount.
3. Flexi-Loan: It is a loan with one portion of fixed interest rate and the other portion with floating interest rate.
4. Realty-Loan: It is to buy a vacant land or plot where you can build your dream home. It helps in beating price rises on realty and build homes later.