In India, settling down is often equated to owning a home. Today, you can easily own your dream home as there are plenty of financial organisations, including banks and NBFCs (Non-banking Financial Companies), that are willing to offer home loans at competitive interest rates.
Applying for a home loan is one of the easiest and most feasible ways to get the desired funds for buying your dream home. Also, since a home loan allows you to repay the amount in smaller instalment over a period of 15-30 years, you need not splurge your entire savings at once.
Today, apart from getting loans at competitive interest rates, you can also choose from a wide range of home loan options. The lenders offer a variety of home loans to suit the varying needs of the borrowers. Let us look at the different home loans in India.
- Home purchase loan
This is one of the most common and popular types of home loan in India. As the name suggests, you can avail of a home purchase loan to buy a new apartment, row house, a bungalow or a villa from a development authority or a builder.
You can also use the home purchase loan to buy a resale property from a seller and to construct a new home on the piece of land that you own or is allotted to you by the government.
- Home extension loan
Over a period, as your financial and family status changes, your housing requirements may also change. You may feel the need to move to your bigger house to accommodate your family members comfortably.
Applying for a home extension loan can be helpful in such a situation. It would help you get the desired funds to meet the cost of extending your home. You can add a new room or a new floor altogether to your existing home.
You may also use the funds to build a new bathroom, extend the kitchen or build a new bedroom for your newly born child.
- Home improvement or home renovation loan
It is the innate desire of every homeowner of having a beautiful home interior and exterior that exudes their personality and taste in aesthetics. Over a period, as your home gets old, you may want to upgrade the same and apply a fresh coat of paint or carry out other repair works to enhance the beauty of your home.
However, the home renovation can cost a significant amount depending on the nature of the work you want to undertake. And, to get the necessary funds for the same, you can apply for a home improvement loan. Such loans are easily available, and the interest rate are much more affordable than a personal loan.
- Plot Loan
If you want to build your own home, you may want to purchase a piece of land on which you can build the home as per your own specification and liking. You can apply for a plot loan for buying a new or resale plot.
- Reach home loan
Reach home loan is especially available for the individuals working in the unorganised sector. You can avail this type of home loan for purchasing a new or resale property, construction of your home on the piece of land that you own or is allotted by the government. You can even use this loan to enhance your existing housing property or for home loan extension.
Final Word
Thus, there are different types of different loans in India that serve specific purposes. Know your exact requirement and apply for the right type of home loan.
