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What are the different types of Home Loans in India?
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Whether it is a feeling of accomplishment or wise investment, purchasing a home has always been special for us Indians. Despite the increasing prices of properties, every year, lakhs of Indians buy new homes. Getting a dream house has become possible because of the easy accessibility to home loans. As the process of getting a home loan is becoming more transparent with time, more people are taking this option to complete their dream of having a house.
The financial institutions are also encouraging potential buyers to take loans by offering attractive interest rates. They understand that people have different requirements when it comes to properties. That’s why different types of housing loans are available that cater to different needs regarding homes.
Let’s find out the different types of home loans available in India:
Home Loan to buy a property
This is the most popular type of home loan taken to purchase any under-construction or ready to move-in property. In India, most banks and other financial institutions offer housing loans to potential home-buyers to buy property. The amount is transferred from the bank to the builder or seller directly.
Home Loan to purchase land
Financial institutions also provide loans to buy a plot of land. Purchasing land is very convenient as you can develop a property whenever you have finances available for it. However, lending institutes require construction to also be started in a certain time period for approving land loan.
Home Renovation Loans
Also known as home improvement loans, you can take them to renovate your house. Financial institutions provide these loans for various types of renovations, from structural changes to interior designing.
Home Loan Balance Transfer
If you are not satisfied with the interest rates provided by your current lender, then home loan balance transfer is a good way out for you. By using this option, you can transfer your housing loan balance from one bank or lending institution to another, which is providing you with a lower interest rates or repayment terms.
Home Loan Top up
Top-up loans are essential when it comes to fulfilling any of your needs. Expenses such as wedding expenditure, school or college fees, dream vacations, home renovation projects might require financial assistance. With regards to home loan, a top-up Loan is a financial assistance provided by banks or housing finance companies above your existing home loan. The purpose of a top-up loan is to assist you in fulfilling your financial or in your personal requirements.
Now that you have a sense of the different types of home loans available in the market, you can decide which one in particular do you need.
Additional Read: Step by Step Guide to understand the Home Loan Process
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