Ans: The home loan interest rates differ from bank to bank and generally range from about 925% to around 12% the interest on home loan India is usually calculated either on monthly reducing and yearly reducing balance. In some cases, daily reducing basis is also adopted.Annual reducing in this system the principle for which you pay interest reduces at the end of the year. thus you continue to pay interest n a certain portion on the principle which you have actually paid back to the lender. This means the EMI for the monthly reducing system is effectively less than the annual reducing system.

Monthly reducing In this system the principle for which you pay interest reduces every month as you pay your EMI.Daily reducing In this system the principle for which you pay interest reduces from the day you pay your EMI. EMI in the daily reducing system is less than that in the monthly reducing system.

TYPES OF LOANS

Q. what are the different types of home loans available?

Ans: some key type home loans available are: home purchase loan: this is common loan for purchasing a home.Home improvement loan: this loan is given for implementing repair works and renovations to your home.Home constructive loan: this loan is available for the construction of a new home.Home extension loan: home extension loans are given for expanding or extending an existing home. For example, addition of an extra room etc.Home conversion loan: Available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some additional funds are required. Through a home conversion loan, an existing loan is transferred to the additional amount required eliminating the need for pre-payment of the previous loan.Land purchase loan: This type of loan is sanctioned for the purchase of land for both home construction or investment purposes.Bride loan: It is designed for people who wish to sell the exiting home and purchase another. This loan helps finance the new home until a buyers is found for the old home.Balance transfer loan: Balance transfer help you pay off exiting home loan with higher interest rate and avail of a loan with a lower rate of interest.Refinance loan: this loan help you off pay the debt you have incurred from private sources such as relatives and friends for the purchase of your present home.Stamp duty loan: This loan is sanctioned to pay the stamp duty amount that needs to be paid on the purchase of a property.Loans for NRIs: this loan is tailored for requirement of NRIs who plan to build or buy a home in India.