When people think of housing finance companies, they often think only of home loans. While this is understandable, it is not the full picture. Over time, these companies have expanded their services to include a wide range of loan options beyond housing. These loan products serve both business and personal needs and come with structured repayment options and affordable interest rates. Here is a detailed look at what they offer.
Housing finance companies offer loans that go beyond housing needs. These include funding options for personal expenses, business growth, commercial property, and more.
A loan against property allows you to use your owned residential or commercial property as security to get a loan. This type of loan is ideal for managing business or personal expenses. Since it is a secured loan, it usually has a lower interest rate. The loan amount is generally up to 50% of the property's market value, and the repayment period can go up to fifteen years. Processing is simpler compared to unsecured loans.
If you already have a home loan, you can get additional funds through a top-up loan. These funds can be used for multiple purposes such as wedding expenses, education costs, or medical emergencies. Top-up loans are typically available after one year of the final disbursement of the existing home loan and after you have taken possession of the property. Usually, the combined total of the existing loan and top-up loan should not exceed 75-80% of the property's market value.
Business owners and professionals can apply for loans to purchase or improve commercial property. This includes the construction, purchase, or renovation of shops, clinics, or offices. These loans are also extended for buying plots meant for commercial use. The loan amount can be up to ninety percent of the property cost, and the tenure may go up to fifteen years. Housing finance companies may also offer expert advice for legal checks and property valuation.
Lease rental discounting helps commercial property owners get a loan by using the expected rental income as the base. This loan is provided against the rent receivable from a lease agreement with a tenant. The loan amount is generally up to 50% of the property's market value, but other factors like rental income, lease duration, and tenant profile are also considered. This is helpful for those who want to unlock liquidity without selling the property.
Housing finance companies now offer more services that are closely linked with property ownership, personal finance, and business needs. Here are five such options that you should be aware of.
A balance transfer facility allows borrowers to move their existing home loan from one lender to another with better terms. Many housing finance companies offer this service with attractive interest rates, helping borrowers reduce their loan burden. It also allows for renegotiating the loan tenure and monthly instalments.
If you own land and want to build your own house, housing finance companies can finance the construction. The loan is released in stages based on the progress of the construction. This is especially helpful in rural and semi-urban areas where people often prefer building homes over buying pre-built units. The funding is based on the cost estimate shared by an approved architect or engineer and is verified by the lender.
Many housing finance companies also offer loans specifically for purchasing plots. These plots can be in approved layouts for residential or commercial development. The loan is sanctioned based on the location, value, and legal status of the plot. This is ideal for those planning to build in the future but who want to secure a good location now. The tenure of such loans can extend up to 15 years.
Besides construction and purchase, many companies provide home renovation or extension loans. These loans are meant for upgrading interiors, plumbing, or adding new rooms. This type of loan is suitable for families looking to expand their space without moving. The loan amount depends on the proposed work's cost and the existing home's market value.
Housing finance companies continue to expand their offerings beyond home loans, providing practical financial solutions for various needs. Whether you need funds for a commercial project, renovation, or working capital, these companies offer options backed by property. Their secured nature often ensures lower interest rates and quicker processing. With reliable service and multiple loan types, housing finance companies are becoming dependable sources for home and business financing.