Types of Home Loan to Know About

Posted by Sarita Yadav on January 27th, 2022

Home Loan is a type of loan, which is taken for the construction or purchase of a house. A home loans is also available for home improvement or repairs. Also, to buy land or plot to build a house. Banks or financial institutions issue home loans. Home loans can be availed for a maximum tenure of up to 30 years. Later it has to be returned with interest. You can return it in instalments. You can also return the lump sum after a certain period as per your convenience.

Home Loan Types | Types of Home loan

Home loans can be availed for a wide range of home-related needs. The following types of home loans are prevalent in India-

• Home Purchase Loan - home loan to buy home
• Home construction loan - home loan for home construction
• Land purchase loan - home loan to buy land
• Home Improvement Loan - Home Loan For Home Repair
• Home Extension loan - Home loan to add something new to the house
• Top-Up Home Loan - Addition of additional home loan, only on the old loan

Home Purchase Loan

You can take a home loan to buy a pre-constructed house or flat. The house can also be taken from an individual, a builder or developer, or even from government housing construction agencies. This is the most popular type of home loan. You buy a house by taking money from the bank and later pay it off with interest.

Home construction loan

If you do not want to take a ready-made house, but want to build a house of your kind, then a home loan is also available for this. This is called a home construction loan. Since the house is not yet built, the quantum of this home loan is decided according to the estimated cost of construction of the house.

Land Purchase Loan

Yes, even if you are not thinking of buying or building a house now, then you can buy land for it and put it. Banks also give home loans to buy such land. And you don\'t need to build a house on it later. You can also buy it as an investment and later sell it at a good price. This is called a land purchase loan.

Home Improvement Loan

You are looking to get a new improvement done in your old house itself. For example, if you want to build a bathroom, a kitchen a garage, or a room, you can also take a home loan for that. This is called a home improvement loan. Similarly, if you want to get any part of your house repaired, then a home improvement loan is also available for that.

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