Owning a home is everyone’s dream and most Indians use loans to realize this dream of owning a house. In fact, demand for home loans has multiplied several times over the last two decades. As a result, many housing finance companies and banks in India now offer loans to assist you in purchasing a home for a variety of reasons. Here’s a lowdown on the different types of home loans that you should be aware of.
General Home Loan: This is one of the most common types of loans available to home-buyers. Many reputable finance companies/banks provide them, ensuring that the terms and conditions are extremely flexible and fair so that the buyer (including a self-employed individual) can realize his/her dream of owning a home.
Home Construction Loan: If you don’t want to buy a pre-built home and would rather have it built to your specifications, you can get a home construction loan. To be eligible for this loan, you must own or co-own a plot of land. Construction loans are available from a variety of housing finance companies and banks.
Land Purchase Loan: Many buyers in the country want to buy a property and then build a home brick-by-brick, therefore several housing finance companies and banks offer what is known as a land and plot loan or land-purchase loan to these people.
Home Extension Loan: The Home Extension Loan is for homeowners who want to expand their existing home because their family has grown. Many financial institutions and banks offer home extension loans.
Home Improvement Loan: Financial institutions and banks are also known to provide home-improvement loans, which is also referred to as ‘home renovation loans’. This loan is availed by people who already own a home and want to renovate it.
NRI Home Loan: NRI home loans are specialized home loans that have been designed to assist non-resident Indians in purchasing residential real estate in India. Most private and public sector banks include NRI loans in their portfolio of housing loans.
Home Conversion Loan: Existing home loan borrowers who want to move into a new home can avail of this loan to do so. Through this homebuyers can fund the purchase of a new home while avoiding repayment of the previous home loan by transferring the current loan to the new home.