Types of Home Loans
The Home Loans that are available in the market have different criteria to avail. They also have number of segments that are categorized according to varied demand of the market – different home loans for different requirements. The following is the list of different types of Home Loans you can avail from the market:
Home Purchase Loans:
Home Purchase Loans are the basic home loan you can opt for purchasing new home. This type of Home Loan is offered by all kinds of Banks and HFCs
Home Construction Loans:
Home Construction Loans are especially meant for the construction of a new home. Formality of availing this loan has a little different from the normal Housing Loan. The plot on which the construction is being erected is purchased within a period of one year, the cost of the plot is then also included as the component for the valuation of total cost of the property. But in case the date of purchase exceeds one year to the date of application the above condition is not applicable.
Home Extension Loans:
Home Extension Loans is offered for meeting the operating cost of alteration to an existing building. Extension here means addition of an extra room etc.
Home Conversion Loans:
Home Conversion Loans are offered to those who want finance for the purchase of another home by converting the already existing home and on which loan is already sanctioned. Through this loan, the existing loan is transferred to the new home including the extra amount required and there is no need for pre-payment of the previous loan.
Land Purchase Loans:
Land Purchase Loans can be availed for purchasing land for both home construction as well as investment purposes.
Stamp Duty Loans:
Stamp Duty Loans is offered for the payment of stamp duty in the transaction of the property.
Bridge Loans are offered for selling the existing home and purchasing of another. The bridge loan assists in the finance of new home, until a buyer is found for the old home.
Balance Transfer of the loan is the transfer of the balance of an existing home loan at a higher rate of interest (ROI) to either the same company or another.
Refinance loans are availed when a loan from an organization at a particular ROI is dropping leading to a loss. Then the option of swap of the loan can be availed. One can avail this from either the same HFI or other at the current rates of interest.
NRI Home Loans:
NRI Home Loans are meant for Non-Resident Indians who wish to build or buy a home or property in India.