An individual can choose a home loan as per the need and affordability. Mentioned below are the different types of home loan products available in India:
Home Purchase Loans
This type of loan is taken to buy a residential property, including flats, row houses and bungalows. The maximum loan amount offered by banks is 90% of the present market value of the property. For Non-Banking Financial Companies (NBFCs), this value is 80%.
Home Construction Loans
This type of home loan can be availed by the owner of land to meet the costs of constructing a new house. The loan can also be taken to finish the construction of an unfinished house.
Home Improvement Loans
This type of home loan can be availed to renovate, repair or refurnish your home. Home improvement loans are very popular due to low interest rate.
Home Extension Loans
This type of loan is taken when an individual wants to extend or add more space to the home. For instance, adding a room as per growing family needs.
Land-Purchase Loans
This type of home loan can be availed for the purchase of land or a plot loan for construction or as an investment.
NRI Home Loans
This type of home loan is taken by Non-Resident Indians for construction of a house or renovation of an old property in India. The maximum tenure for this loan can go up to 30 years, and the interest rate can be fixed or floating.
Balance Transfer
Home loan balance transfer can be availed by an individual who wants to transfer an existing home loan from a bank/NBFC to another provider/lender. The major reason for availing this loan is getting a lower interest rate from the new lender and availability of top-up facility.
Bridge Loan
This type of home loan is taken by people who want to a buy another property by selling off the existing one. The fund helps meet short-term fund requirements like down payment for the new house till the old property is not sold off. Bridge loans are generally offered at higher interest rates with a maximum repayment tenure of up to 2 years.








