The dream of buying one’s own home is not an impossible task in India-thanks to the burgeoning housing finance market in the country. There are umpteen numbers of banks and HFCs in the country which have come up with attractive home loan plans in the country. Keeping in mind, the difference in the necessity of every individual, the lending institutions like banks and housing finance companies offer different types of home loans for a wide gamut of housing activities. Read this article to explore the various kinds of home loans available in the country.
Home Loan Categories
Home Purchase Loans
There are the basic home loans for the purchase of a new home. If you want to buy a flat in some society or some already built house, banks and HFCs sanction you home purchase loans for this process.
Home Improvement Loans
These loans are given for implementing repair works and renovations in a home that has already been purchased by you. It may be requested for external works like structural repairs, waterproofing or internal works like tiling and flooring, plumbing, electrical work, painting, etc.
Home Construction Loans
These loans are available for the construction of a new home. The documents required by the banks or HFCs for granting you a home construction loans are slightly different from the home purchase loans. Depending upon the fact that when you have brought the land, the lending party would or would not include the land cost as a component, to value the total cost of the property.
Home Extension Loans
Home Extension Loans are given for expanding or extending an existing home. For example addition of an extra room, etc. For this kind of loan, you need to have requisite approvals from the relevant municipal corporation.
Land Purchase Loans
Land Purchase Loans are available for purchase of land for both home construction or investment purposes. So, you can be granted this loan even if you are not planning to construct any building on it in the near future.
Bridge Loans are designed for people who wish to sell the existing home and purchase another. The bridge loan helps finance the new home, until a buyer is found for the old home.
Balance Transfer loans help you to pay off an existing home loan and avail the option of a loan with a lower rate of interest. You can transfer the balance of the existing home loan to either the same HFC or any another HFC.
These loans help you pay off the debt you have incurred from private sources such as relatives and friends, for the purchase of your present home.
Stamp Duty Loans
These loans are sanctioned to pay the stamp duty amount that needs to be paid on the purchase of property.
NRI Home Loans
This is a special home loan scheme for the Non-Resident Indians (NRI) who wishes to build or buy a home or land property in India. They are offered attractive housing finance plans with suitable reimbursement options by many HFCs in the country.