In the diverse Indian housing landscape, it is important to know the difference between kutcha houses and pucca houses, particularly for those who intend to apply for a home loan. These words not only specify the material used in building houses and their longevity but also have implications for home loan eligibility criteria and house ownership financial planning.
What is a Kutcha House?
A kutcha house (or spelt as kachcha house) refers to a house constructed of local, native building materials like mud, bamboo, thatch, and wood. Such houses are normally temporary and need to be constantly repaired because they become prone to the actions of weather-related elements like rain and wind. They come in rural settlements and are maintained by the residents as well, representing instances of the traditional style of construction.
Kutcha House Meaning:
- Materials: Mud, thatch, bamboo, wood
- Durability: Low; prone to destruction by natural forces
- Construction: Simple, usually without the official architect's plans
- Cost: Low; cheap materials and readily available locally
What is a Pucca House?
In contrast, pucca house (or pakka house) is constructed with long-lasting materials such as brick, cement, concrete, and metal. These types of houses are permanent and not much maintenance is required. Pucca houses are located in urban and semi-urban regions and are typically constructed by expert builders or contractors.
Pucca House Meaning:
- Materials: Brick, cement, concrete, metal
- Durability: High; effective resistance to environmental factors
- Construction: Systematic, often following formal architectural norms
- Cost: More; labour and materials are costly
Semi Pucca House: A Middle Ground
A semi pucca house is a mix of kutcha and pucca houses. The houses can have a pucca base and walls but a kutcha roof or vice versa. They are a middle ground for families promoting themselves from kutcha to pucca housing, usually because of economic limitations.
Semi Pucca House Characteristics:
- Materials: Mix of permanent and temporary materials
- Durability: Moderate; stronger than kutcha but weaker than pucca
- Construction: Partial compliance with full building codes
- Cost: Moderate; cheaper than fully pucca houses
Also Read: Buying Land with a Home Loan? Know How to Convert Bigha to Sq. Ft
Key Differences Between Kutcha and Pucca Houses
It is important for potential home buyers and house finance seekers to understand the distinction between a kutcha house and a pucca house:
| Feature | Kutcha House | Pucca House |
| Materials | Mud, thatch, bamboo, wood | Brick, cement, concrete, metal |
| Durability | Low | High |
| Maintenance | Frequent repairs needed | Minimal maintenance required |
| Lifespan | Short term | Long term |
| Construction Cost | Low | High |
| Location | Predominantly rural | Urban and semi-urban areas |
| Loan Eligibility | Limited; depends on lender policies | Higher; meets most lender criteria |
Effect on Home Loan Eligibility
In assessing a home loan, the dwelling's quality, kutcha or pucca, affects home loan eligibility criteria.
- Kutcha Houses: Because of their temporary nature and low market value, it is hard to take a home loan for a kutcha house. Banks will see more risks, and the resale value of such property will be low.
- Pucca Houses: They stand a better chance of fulfilling the requirements given by banks and financial institutions. Their lasting nature and compliance with the building codes make them more acceptable to lenders, thus raising the chances of securing a loan.
Grihum Housing Finance considers loan proposals based on the type of construction of the property, among other criteria. Individuals who want to finance a pucca house are most likely to qualify for the home loan eligibility.
Utilising Home Loan Calculators
Before applying for a home loan, it's advisable to assess your financial readiness using tools like the Home Loan EMI Calculator and the Home Loan Eligibility Calculator.
- Home Loan EMI Calculator: It helps calculate your approximate monthly payments based on the loan amount, interest rate, and tenure. It helps in budgeting and ensures that the EMI is within your capabilities.
- Home Loan Eligibility Calculator: This calculator calculates the loan quantum you can be eligible for based on information like income, age, and outstanding liabilities. It gives an instant idea of how much you can borrow.
Grihum Housing Finance provides these calculators on its website so that the applicants can make decisions accordingly.
Applying for a Home Loan Online
You can apply for a Home Loan online through Grihum Housing Finance just by providing basic information through its website
Here's how it works:
- Go to Official Website: Go to Grihum's website https://grihumhousing.com/
- Submit Basic Details: Enter your name, contact details, loan requirement, and other basic inputs.
As soon as these details are registered, the Grihum team follows up for subsequent processing, documentation, and eligibility checks offline.
The platform assists customers in initiating the first step towards home ownership online, making the first process easy and time-saving.
Also Read - Home Loan Application Avoiding Common Mistakes and Achieving Success
Conclusion
It is important that future homeowners realize the distinction between kutcha houses and pucca houses since this affects home loan choices. Although kutcha houses are affordable, their temporary nature is a problem in securing home loans. Pucca houses, as permanent structures that are up to building standards, are the preferred option of lenders.
Grihum Housing Finance is a trustworthy ally for customers who seek to transition from kutcha to pucca housing. By offering readily available online utilities such as the Home Loan EMI Calculator and Home Loan Eligibility Calculator, and an easy application process, Grihum makes its applicants smart enough to make wise decisions to accomplish their homeowning experience.
