What are Different Types of Home Loans in India?

Owning a home is dream for many Indians for others it may be renovating or reconstructing. Getting a home loan is a lot easier work these days. Before applying one needs to know their own requirement and apply for the suitable type of loan. Banks do offer different types of home loans for different needs.

Home Construction Loans:

As the name indicates, such loans can be availed for constructing new home. Individuals who are looking forward to construct according to their own wish. For that they need to submit few details on land, including total price of the house. In case, if the land purchased is more than a year ago, then the above clause is not applicable.

Individual should be ready with the rough estimate of the amount to be incurred while constructing. However, it depends on the lender to approve and decide on the estimate. Not every banks provide such loans.

Home Expansion Loans:

If you already own a home and planning to expand then this is the one for you. Expansion includes any alteration in the current residence to add extra space such as constructing a new room, a floor, a bigger bathroom or enclosing a balcony.

Home Conversion Loans:

Individuals who have already purchased a house through loan and now want to buy and move to another house can opt for such type of loan. Where the loans, can fund the investment of the new house. However, one needs to transfer the current loan to the new house.

Bridge Loans:

Such loans are available for people who want to sell their existing home and buy a new one. The bridge loan will be helpfull in case there is a delay in finding a buyer for the previous one. The bridge loan will finance your new home untill you find buyer.

Land purchase loans:

These loans can be availed to buy a land where you plan to build a house later. Banks at most offer 85% of the price.

NRI Home Loans:

This is a type of home loan offered for Non-Resident Indians (NRI) who wishes to build or buy a home or land property in India.

Home Improvement Loans:

Such loans are for existing owners who may wish to upgrade or ---- the home by external works like structural repairs, waterproofing or internal works like tiling and flooring, plumbing, electrical work, painting, etc.