Home loan helps most people achieve their dream of owning their own home. The demand for home loans in India has increased many folds over in the past couple of decades. So apart from the usual home loan, there are many housing finance companies and Banks that offer loans under home loans for a variety of other purposes.
These are the 7 Types of Home loans in India which you should know about.
Many banks and Financial institutions offer loan to buy land. Land is a flexible option which can be bought for investment purpose or to make a house, the bank gives loan up to 85% of the cost of the land.
This type of home loan is ideal if one wants to build up a home according to their needs and wishes without going in for a pre constructed home. The loan is determined by an average cost of construction of the home and can be disbursed at one go or in installments. Several Housing finance companies and Banks offer loan for construction.
If one wishes to add a new room, a new floor or to even build a new balcony to expand their existing home, they can avail a home extension loan from a housing finance company or banks of their choice.
A home improvement loan, also known as home renovation loan can be used for various purposes such as painting of the house, any major plumbing work, upgrading the electrical system, installing new tiles or flooring, waterproofing, etc. A home improvement loan is ideal if one wants to renovate their house but lack the necessary funds to do so.
It can happen that one may not be happy and satisfied with the services offered by their current housing finance company or banks. Or they might be looking for one which gives them loan at a much lower interest rate. In such cases, one can transfer the home loan to another lender who offers lower interest rates and better services. Some housing finance companies and banks even offer a Top- up loan if required besides the home loan, which helps one to get additional funds to fulfil any other financial requirement.
This has been specially designed for the NRIs who want to buy a home in India. Bank and many Financial institutions do provide the loans but here the process and application procedures are much different than usual loan applicants.
These are short term loans which have been drafted for existing homeowners who are interested in buying a new property. Being a short term loan of less than 2 years, its for the borrowers who are need the funds till their existing house is sold off.