Home loans are a boon as they help you in buying your own home. Moreover, home loans can be put to meet your multiple housing -related needs that you have. They are not restricted to providing finance only for buying your home. There are different types of home loans available in the market, and each type of loan helps you fulfill a specific type of housing need. Do you know about the types of home loans that are available?
Types of Home Loans in India
Many might not and so here are six of the main types of home loans which you can find for your needs –
These are the most popular types of loans which that allow you to buy a house property for yourself. You can buy an under- construction house property or a resale property using funds provided by these types of loans. The amount of loan depends on the cost of the property that you are buying.
Land Purchase Loans
These loans are allowed to enable you to purchase a plot of land. You might or might not construct a home on the plot purchased. The loan would only cover the cost of the land property that you are buying.
Home Construction Loans
These loans, as the name suggests, are offered for constructing your own home. If you have a plot of land on which you want to construct your house, you can avail this loan to cover the cost of construction that would incur in building the house. Under this type of loan, the amount of loan which is available depends on the cost of construction, which would be incurred.
Home Improvement Loans
If you already have a house property to your name and you want to make improvements to the same, you can avail of a home improvement loan. Home improvement loans cover the cost incurred in renovating, furnishing, or altering your home. Even if you build extensions to your home, the cost of the extension would be covered under home improvement loans.
Also Read: Home Loan Interest Rates in India 2019
NRI Home Loans
NRI home loans are those home loans that are offered to NRIs (Non-Resident Indians). These loans allow NRIs to buy on construct their own home in India. NRI home loans are can be offered for buying a house or for constructing one. There are home improvement loans too which allow NRIs to make improvements in their existing homes in India. In the case of NRI home loans though, the house property for which the loan is being availed should be located in India.
Top-Up Home Loans
Top-up home loans are nothing but a type of personal loan which are available for existing home loan buyers. If you have a home loan to your name and if you require additional finance for any other personal requirement, you can avail of a top-up home loan. Top-up home loans do not require the loan funds to be used for any housing -related needs. You can use the loan for any personal need that you have. Since you are an existing borrower, the lender has your details and so these loans are offered instantly.
So, these are the different types of home loans that you should know about so that you can choose the right loan as per your requirement.
There are different types of home loans available for different financial needs which allows you to pick the best option for you while getting you a step closer to your dream home. There are financial solutions which fit according to your budget and allow you to have a place you can call your own without emptying your wallet. So what are you waiting for? Go get your dream!