Home Loan for Short Term Requirements

Home loan for short term requirements can come in handy when looking a home loan. It is usually disbursed in multiple tranches. Some financial institutions only charge interest on the amount already disbursed, which results in lower Equated Monthly Instalments (EMIs).

Feature and Benefits of Home Loans for Short term requirements

There are several benefits and features of home loans for short term requirements. These are as given below:

• Lower EMIs: Short term requirements home loans are sometimes disbursed in installments according to the requirements of the stage of construction, with interest being charged only on the amount that is disbursed, leading to lower EMIs
• Flexible repayment tenures: While this can vary from bank to bank, repayment tenures can go up to 30 years depending on the age of the borrower at the time of availing the loan
• Attractive interest rates: You can get attractive interest rates on home loans
• Interest payments: Until you get possession of your house, you only have to pay the interest component of your housing loan, which is termed the PPI-Prior Period Interest.
• Tax Benefits: Tax benefits on the home loan can be availed for up to Rs.2 lakh for the interest component and up to Rs.1.5 lakh of the principal component of the home loan after receipt of the Occupancy Certificate from the builder.

Best Home Loans for Short term Requirements

1. Canara Bank Housing Loan

   Canara Bank Housing Loan is convenient both for purchasing an short term requirments property and to take over an existing loan from other financial institutions. The highlights of this home loan are as follows:

   • Repayment tenure of up to 30 years or borrower attaining 75 years of age
   • Loan amount of up to 4 times the gross annual salary or gross annual income
   • Attractive rates of interest with interest rate concessions for women based on credit risk premium

   Explore: Canara bank Housing Loan

2. Bank of Baroda Home Loan

   Bank of Baroda home loan schemes for construction of a house can be availed for up to Rs.1 crore in rural and semi-urban areas and up to Rs.10 crore in metros. The highlights of the scheme are:

   • Reimbursement of the cost of plot of land (if purchased within 2 years)
   • Maximum tenure of up to 30 years with moratorium period of up to 3 years after disbursal of loan
   • Top-up loan can be availed for up to 5 times during the loan tenure

   Explore: Bank of Baroda Housing Loan

3. SBI Regular Home Loan

   State Bank of India’s Regular Home Loan can be used to purchase property under construction. It is widely available across India and has transparent processes. The highlights of the scheme are:

   • Low interest rates
   • Special concession on interest for women borrowers
   • Repayment tenure of up to 30 years

   Explore: SBI Home Loan

4. Punjab National Bank Housing Loan for Public

   Punjab National Bank Housing Loan for Public can be used to purchase houses or flats that are under construction by approved builders and developers. The highlights of the housing loan are:

   • Quantum of loan of up to Rs.50 lakh
   • Maximum tenure of up to 30 years
   • Attractive interest rates and low processing fees

   Explore: PNB Housing Loan

5. LIC Housing Finance Pay When You Stay Housing Loan Scheme

   LIC Housing Finance Pay When You Stay loan scheme offers a special feature where repayment of the principal amount of the loan starts only when you have possession of the property. Other highlights of the scheme are:

   • Maximum loan amount of up to Rs.2 crore with loan beyond this also offered under a separate loan account
   • Repayment tenure of up to 30 years
   • Pradhan Mantri Awas Yojana Credit Linked Subsidy Scheme can also be availed under this by eligible individuals

   Explore: LIC Housing Finance