Different Types of Home Loans
Loans for purchasing a house are an attractive and popular means of buying a dream house for majority of Indians. In a country like India, the demand for a housing loan has increased 2 folds in the last decade. Several people apply for this loan in order to get a perfect home for themselves to live in. the home loan market is found to be brimming with diverse home loan options that cater to various needs of a consumer. Here is a list of types of home loans available in the Indian finance market.
Land purchase loans
This type of loan is taken by anyone who wishes to purchase a plot of land in order to construct a house for themselves. Majority of banks offer a loan up to 85% of the land value. The money for this can be availed for residential as well as for investment purposes.
Home purchase loans
This is the most common type of home loans in India required by majority of Indians. Not only is the demand for this type of a loan common, so is the supply. Almost all banks offer home purchase loans. The money from such a loan is mainly used to purchase a house from a previous owner.
Home construction loans
This loan is opted by someone who wishes to construct their dream house according to their wish rather than purchasing an existing house. However, the plot of land where the owner wishes to construct the house on should be clear of all legal disputes.
Home expansion/Extension loans
This loan comes in handy in a situation wherein someone wants to expand their residential house. Expansion in such a case includes alteration in the current structure of the residence to add extra space to the house.
Home improvement loans
This type of a loan is availed by individuals who already own a house but lack the fund in order to renovate it. All kinds of renovations and repair works like electrical work, water-proofing etc. can be financed using the amounts got from this loan