In India, buying a new home is more than just an important financial decision, it also has great emotional value for people. And if you are looking to buy a home, you can easily get the funds by applying for a home loan. Many lenders including NBFCs and Banks are willing to offer home loans at the most competitive interest rates.
Getting a loan for home purchase is a smart financial decision as it allows you to get the funds and you can repay the same over a long period up to 30 years in smaller instalments. This means you need not deplete your entire family savings at one go.
Apart from offering customised housing loan solutions to attract more borrowers, the lenders also offer a wide range of loan schemes to suit the varying needs of the people. Let us look at some of the different home loan options in India.
- Home purchase loan
The most availed type of home loan is home purchase loan. As the name suggests, you can get this loan for buying a new, an under-construction property, or a resale home. You can buy any type of property be it a row house, a luxurious penthouse, a bungalow, or a simple studio apartment.
You can also use the home purchase loan to construct your home on the piece of land or plot you own or is allotted to you by the government.
- Home renovation loan
The home renovation loan is also commonly referred to as home improvement loan. It comes in handy when you want to redo your home décor and beautify your home interior but lack enough funds.
As your home gets old over a period, you may want to apply a fresh coat of paint or change the bathroom fitting and curtains to keep your home looking fresh and new. But you would know that any repair or renovation work comes with a cost.
You can use a home renovation loan to undertake the home renovation project. These loans are easily available and are a more cost-effective way than getting a personal loan, which comes with a higher interest rate.
- Reach home loan
Reach home loan is one of the best home loan options for people employed in the unorganised sector. You can apply for this loan to buy a resale property, construct your home, or a new house from the builder or developer. You can even use this loan for home extension or renovation purposes.
- Plot loan or Land loan
This type of loan is specially designed to help people buy a plot or piece of land on which they can construct their home. You can build a home to specifically suit your family’s needs as per your specifications. You can use the loan to purchase a new plot or a resale plot.
Final Word
Thus, there are different types of home loans in India. Each of these loan types serve specific purposes. So, before you start comparing different home loans, it is vital that you first assess your loan needs and choose the right type of home loan accordingly.
