Buying a house is a dream for many, but with the soaring real estate prices, it may not be affordable for everyone. Home loans have come to the rescue for people who want to buy a house but are short on funds. A home loan is a type of loan that you can take to purchase or construct a house. You can also take a home loan to renovate an existing house or buy a plot of land to construct a house. In this blog, we will discuss the varieties of home loans available in India.
Types of Home Loans in India
Home Purchase Loan
As the name suggests, a home purchase loan is a loan that you can take to purchase a new or resale house. The loan amount is usually up to 80% of the property value, and the interest rates are generally lower than other types of loans.
Home Construction Loan
If you want to construct a new house, you can take a home construction loan. The loan amount is disbursed in installments as the construction progresses. The interest rates for home construction loans are usually higher than home purchase loans.
Home Improvement Loan
If you want to renovate your existing house, you can take a home improvement loan. The loan amount is usually up to 80% of the renovation cost, and the interest rates are similar to home purchase loans.
Plot and Construction Loan
If you want to buy a plot of land and construct a house, you can take a plot and construction loan. The loan amount is disbursed in installments as the construction progresses. The interest rates for plot and construction loans are usually higher than home purchase loans.
Home Extension Loan
If you want to extend your existing house, you can take a home extension loan. The loan amount is usually up to 80% of the extension cost, and the interest rates are similar to home purchase loans.
Balance Transfer Home Loan
If you have an existing home loan with a higher interest rate, you can transfer the outstanding balance to another bank or financial institution that offers a lower interest rate. This is known as a balance transfer home loan.
Top-up Home Loan
If you have an existing home loan and need additional funds for personal or business purposes, you can take a top-up home loan. The loan amount is usually up to a certain percentage of the outstanding home loan amount.
Home loans have made it possible for people to fulfill their dream of owning a house. With the various types of home loans available in India, you can choose the one that suits your needs. However, before taking a home loan, it is essential to do your research and choose a bank or financial institution that offers the best interest rates and terms and conditions. If you are looking for apartments for sale in Chennai, you can consider taking a home loan to fulfill your dream of owning a house or apartments in Chennai.
