What is the HUDA Loan?
HUDA Loan; Housing Updation and Development Authority is an autonomous body formed under the Ministry of Housing and Urban Affairs, India. The mission of the HUDA is to provide affordable housing, infrastructure, facilities, and services to citizens through its various development programs. It is the largest public-private partnership for urban development in the world.
The HUDA has been able to come up with a concept of ‘Housing for All by 2020’. They are going to provide quality housing facilities to every household in the country and make everyone’s dream a reality. It is a dream come true for us as well because many of our dreams revolve around affordable housing, which HUDA can provide to us.
Types of HUDA Loans
The loan that we get from the HUDA is called ‘Housing Credit’. There are different types of loans that we can avail from the HUDA. The major ones are:
Home Improvement Loans
The Home improvement loan is the cheapest one among all of the loans. This loan is used to buy household appliances, fix leakages, and get home improvements.
Home Purchase Loans
Home purchase loan is the second most popular loan that we can get from the HUDA. This is a loan taken from one individual to purchase a house and pay for it. The HUDA also helps in reducing the interest rates of the individual by 5%.
Home Refinance Loans
The home refinance loan is taken by individuals who are facing the financial crunch and want to refinance their current house loan to a lower interest rate.
Flexi HUDA Loan
There are many benefits that we can gain from this loan. First of all, the monthly installments are lower than any other loan. Secondly, it is very easy to repay as you just have to make payment to the lender for 5 years and then you will be cleared of the debt. Thirdly, you can choose the tenure and also the amount that you want to borrow.
Interest Rates
Interest rate is calculated based on the market value of the house that you wish to purchase. If you wish to buy a house worth Rs. 10 lakh, then you will have to pay Rs. 11,000 as an interest.
also read this: Is A Closed End Loan Right For You? New Tips 2023
Conventional Housing Loan
In this type of loan, the interest is paid by the borrower for the entire term. It is also known as ‘fixed rate loan’.
Conventional Housing Loan for Women
The conventional housing loan for women is different from the conventional housing loan. They pay lesser interest. There is no fixed amount of the loan but the repayment depends on the family income.
What Is the HUDA Loan and How it works?
There are so many types of loan available in the market and people have taken different loans in their life. The bank loan is the most famous one and this loan is not a bad idea, but when you compare with other loans, it is a bit expensive. So, it is better to go for something which is less expensive.
So, what is the HUDA loan? It is a very simple thing; it is nothing but a loan taken for housing development, which is available at low interest rates. You can apply for this loan by getting in touch with the housing society.
So, if you want to have a better lifestyle, then don’t wait, apply for the loan as soon as possible. And if you have any doubt regarding this, then you can ask from experts and they will guide you.
What is the HUDA Loan Process?
The HUDA loan process is pretty easy as you just need to fill an application form in the housing society. You will get an application form from the housing society, which is free of cost. You have to fill this application form as per the guidelines and then submit it to the housing society. After that, they will approve the application form and then you can get the amount in your bank account.
Housing societies are registered under the Societies Act of 1860 and these societies are responsible for providing the facilities like drinking water, electricity, road, etc. to the families that are living in their area. In case you get rejected from the housing society, then you have the option to approach the court.
Conclusion:
You may get a loan to pay for the home or to improve your home. Also, you may get a loan to refinance your home. HUDA is a great source of financial support for all of us.
