Different Types of Home Loans in India

Owning a home is everyone’s dream. Different types of home loans are provided by a number of home finance companies and most banks to help you finance a house under current affordable housing projects in Gurgaon. Some people may not want a home loan but look forward to obtaining financial support either to buy a piece of land, renovate their houses, or expand their current affordable housing projects in Gurgaon. Here are various types of home loans in India today.

Types of Home Loans in India:
1.Land Purchase Loan
Banks and housing finance companies provide loans for purchasing a plot or a piece of land for constructing your house. You can get a loan of up to 85% of the cost of the property with a maximum of 15 years of repayment term of the loan. Moreover, the term depends on your retirement age. You’re eligible to apply for the land purchase loan if you’re above 21 years of age with a regular monthly income.
2.Home Purchase Loan
Home purchase loan is the most sought-after housing finance product. You can use this loan to buy either an existing one or a new house under current affordable housing projects in Gurgaon. You can get a loan of up to 85 percent of the value of the property. You have three options when it comes to the interest rate applicable to you: floating, fixed, or hybrid rate of interest. Self-employed and salaried employees between the age of 21 years to 70 years are eligible to apply for this loan.
3.Home Construction Loan
If you own a piece of plot or land, loans are available for the construction of a house. The cost of the land will be considered while computing the total cost of the house, if you have acquired the land where you are planning to construct your house within a year of construction. Whereas, it is not applicable if the land was purchased over a year ago before the date of construction. The repayment of loan may be done in installments or as a lump sum amount based on the progress of the construction work.
4.Home Extension Loan
You can apply for home extension loans when you want to add some extra space to your already existing residential projects in Gurgaon. You may construct new rooms, expand your bathroom, enclosed balcony, or remodel some of the rooms. Generally, banks sanction an amount of up to 70 to 85 per cent of the estimated value of the extension work. Your age, repayment capacity, creditworthiness, and credit history are taken into account before sanctioning the loan.
5.Home Conversion Loan
You can apply for a home conversion loan if you have bought a house through a home loan but want to purchase and move into another house under current affordable housing projects in Gurgaon. You are not required to repay the existing loan but you are required to transfer your existing loan to the new home. Home conversion loans usually carry higher interest rates.
Apart from these home loan types; banks may extend short-term – less than two years – loans known as bridge loans to homeowners who want to buy a new one. Major Indian banks and finance companies that provide include the Axis Bank, Bank of Baroda, SBI, ICICI, HDFC Bank, Housing Development Finance Corporation, etc.

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