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Home Equity Loans |
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The bank loans in India can be divided into many categories. One of the commonest loans is the home loans. The home loans can be further classified into Home Equity Loans, Home Extension Loans, Home Improvement Loans, Home Purchase Loans, Land Purchase Loans, Top Up Loans, Short Term Bridging Loans and Loans to Professionals for Non Residential Premises Loan. We are going to discuss about the home equity loans offered by banks, in this section. Home equity loans are used by the customers when they mortgage their existing property to the bank from where they are borrowing money for some other purposes.
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According to the home equity loans in India plan, the banks make an assessment of the market value of the property they are keeping mortgage. The home equity loans or HEL are majorly taken for purposes like medical bills, marriage, and education. The loans are however given to the legal title holders and also the land they keep mortgage should be free of all disputes. Home equity loans are of two types-closed end home equity loan and open end home equity loan. Both of them are second mortgages which are secured where the credit is usually of shorter period than the first mortgages.
In the Closed end home equity loan, you can borrow a lump sum at a time and cannot borrow further and can be amortized for 15 long years. The Open end home equity loan where you are free to choose when and how often you need to borrow money. Some of the most recognized banks which offer home equity loans. These banks include HDFC, ICICI Bank, Bank of India, Standard Chartered, IDBI Bank, State Bank of India, Union Bank of India, UCO Bank, Bank of Baroda Citibank and Development Credit Bank.
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