Today, many lenders in India offer home loans competitive interest rates to attract new customers. Also, they offer customised solutions to suit their specific needs and different types of home loans to suit the specific needs of the borrowers. Let us look at the common types of home loans available in India.
. Home purchase loan
This is one of the most common types of home loan products in India. You can avail a home purchase loan to buy a new flat, a luxury apartment, row house, a villa or a bungalow from a developer or a development authority.
You can also use this type of house loan to buy a resale property from the seller or construct a home on the piece of land that you own or is allotted to you under the central or state government housing scheme.
. Plot loan
If you want to build your own home, you will need land to construct the home as per your choice. Based on the size of the house you want to build; you must purchase the land accordingly. Irrespective of the land size you want, you can get a plot loan. You can use the amount to buy a new plot or a resale one.
. Home extension loan
As your family and financial status changes, your housing needs may change too. When your family grows, you may feel the need to move to a bigger and better house to ensure that all your family members have sufficient space to live comfortably.
In such a situation, you can apply for a home extension loan. It is a much better alternative than applying for a personal loan or any other type of unsecured loan because the housing loan interest rates are much lower. This makes repayment easier and affordable.
With a home extension loan, you can get the necessary funds to meet the home extension cost. You can add a new room, extend your bedroom, or build a new floor on top of your existing home.
. Home improvement loan
We all want our homes to look good and appealing always, right? But, over a period, as you age, the home gets old too. Also, after living in the same space for several years, the interiors may look dull and pale, and you may need to spruce it up. Also, there are chances that the paint feel comes off, or a leakage develops on the roof, which needs immediate repair.
However, home repair and beatification can cost a significant sum. The amount needed may vary based on the extent and nature of the renovation work you want to undertake. If you don’t have enough savings for such a project, you can apply for a home improvement loan. Many lenders offer this type of loan at competitive interest rates.
. Reach loan
Reach home is specially designed to cater to the financial needs of the people from the unorganised sector. You can get this type of home loan to purchase a new or resale property, construct a home, or for home extension purposes.
When you apply for a home loan, know your exact needs, and choose the right loan type to suit your purpose.