Different Types of Home Loans

Published : 06 Mar 2023

  Home Purchase loan

This loan is taken to buy a residential property, including flats, row houses and bungalows. Banks offer 90% of the present market value of the property amount while NBFCs offer 80% of the same value.

 Home Construction Loan

This home loan is taken by the owner of land to cover the construction cost of a new house or to finish the construction of an unfinished house.

Home Improvement Loans

This type of home loan is taken for renovating, repairing or refurnishing your home and it’s a popular type of loan as it offers low interest rate.

Home Extension Loan

This type of loan is taken for extension or addition of more space to the home.

   Land Purchase Loan

This type of home loan is taken to purchase of land or a plot loan for construction or as an investment.

NRI Home Loan

This type of home loan is offered to Non-Resident Indians for construction of a house or renovation of an old property in India for a maximum tenure of upto 30 years, and the interest rate can be fixed or floating.

    Balance Transfer

Home loan balance transfer is taken by an individual who wishes to transfer an existing home loan from a bank/NBFC to another provider/lender as it is available at a lower interest rate from the new lender and availability of top-up facility.

    Bridge Loan

This type of home loan is taken by people who want to a buy another property by selling off the existing one but they generally offer higher interest rates with a maximum repayment tenure of up to 2 years. The fund helps meet short-term fund requirements like down payment for the new house till the old property is not sold off. 

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