Home Loans
Types of Home Loans in India
Banks in India provide different types of housing finance options for different purposes. Here’s a list of the prominent types of housing loans in India, based on a study of products offered by some of the top banks:
- New Home Loans: New Home Loans are offered to eligible customers who are looking to purchase a house or property for the first time.
- Pre-approved Home Loan: Pre-approved home loans are offered by banks to eligible borrowers once his/her creditworthiness, income and financial position are taken into considerable for an in-principal approval of the loan.
- Home Purchase Loans: Home purchase loans are specifically given to borrowers looking to purchase a house or flat.
- Home Loan for Construction: Home loan for construction is offered to customers who are looking to construct their own house on an existing piece of land.
- Plot Loans: Plot loans are loans offered to customers looking to purchase a piece of land or plot for the purpose of constructing a house on it.
- Home Loan Top Up: Home Loan Top Up is a facility offered by most banks and NBFCs that allows existing customers to borrow a certain amount above and over the existing home loan.
- Home Extension/Renovation Loans: Home loans for extension or renovation of home are offered to borrowers who wish to renovate/extend their existing house/property.
- Balance Transfer Home Loan: Individuals can use the balance transfer option to transfer their home loan from one bank to another. Most people choose this option to avail better interest rates.