Guide to the Types of Home Loans in India

1. Guide to the Types of Home Loans in India For many, owning a personal home is nothing more than a dream. Purchasing a home may seem tough due to increasing real estate prices in India. Fortunately, home loans can be a helping hand for those who dream of homeownership. Home Loans are available to meet varied needs providing borrowers with the necessary funds, no wonder they are in high demand in the country. Banks and financial institutions in India provide a range of housing loans and schemes designed to suit the specific requirements of borrowers. In this blog post, we'll discuss the types of home loans in India and what borrowers need to know before buying them. Types of Home Loans in India Home loans are not just for buying houses but for many other reasons including buying plots, property, top-up plans, home extension, home improvement and to revitalize your home. Lenders offer different types of home loans that are popular in the financial market of India. Here are the types of loans available in India- ● Basic Home Loan Many individuals opt for the standard Home Loan to fulfill their ambition of becoming homeowners. This type of loan allows the potential borrowers to get money from the lenders by which they can purchase a constructed home, villa, bungalow, or apartment flat. ● Property Loan As this name suggests, you can get a property loan if you want to buy a property or land to construct a house. You must provide the necessary documents to get the loan for buying land. ● Home Construction Loan If you want to build your dream home on a piece of land, which you already own, you can go for a home construction loan. Instead of getting all the money at once, the loan is given in stages as the construction progresses.

2. ● Home Extension or Renovation Loan If you want to revitalize the aesthetics of your home, consider taking a home renovation loan. Be it adding a new room to the home, repairing the roof, or painting the whole shelter, a home extension or improvement loan can help. Typically, the interest rate for home improvement loans is similar to that of a regular property loan. ● Non-Reliable Indian Loan If you are living abroad and want to buy a house in India, there is a loan option that can help you. But, the process to apply for this loan and the documents required differ from other home loans in India. ● Bridge Home Loan If you sold a house and want to buy a new one but need more money, you can get a loan to cover the loan amount of the new home's costs. ● Home Loan Transfer If you're dissatisfied with your current lender's services and fees, a home loan balance transfer can help you transfer your existing home loan to a new account with lower home loan interest rates. If you want to save on your home loan, it is worth considering this option. ● Top-up Loan You may consider a home loan top-up if you have a mortgage and need additional funds for home repairs or renovations. The benefit of this option is that there are no limitations on how you can use the funds, allowing you to use them for any financial need. This is similar to a personal loan but with a lower interest rate. Conclusion There are multiple home loans available as per the borrower's needs. Potential borrowers need to do fair research about home loans available. This will help you to choose the best option for their financial requirements and help to make better EMI repayment stages.