With our country’s economic policies making it feasible for potential home owners to buy a house, the options for financing have increased substantially. Whether you want to renovate your house or buy a new one altogether, whether you are living abroad and looking for retirement home back in India, or just looking to move cities within the country itself, there is a home loan well-suited to your needs. Today, not only banks but also well-established financial institutes offer housing finance to those looking to put a tick next to “buy a house” on their list of things-to-do. Before you go searching for the best interest rate, know the types of housing loans available in India:
- Home purchase loans
Simply put, this loan will allow you to buy a brand-new house or a house up for resale. One of the most popular loans availed in the country, you can find a range of attractive interest rates on this loan.
- Plot purchase and/or home construction
Let’s say you have come upon the ideal location for your home, but wish to build it the way you want. You have the ideas in place about how your house will look, how many rooms it will have, and how the backyard would look. However, you do not have the funds to actually purchase the plot or construct the house. This is where the loan comes into the picture. Here, you will need to consult with the financial institute as they need to know when the plot was purchased, determine its market value, etc. before they sanction you the loan.
- Home extension
If you are looking to make more space for your growing family by adding an additional room or floor, then a home extension loan is ideal for you. It can be disbursed in instalments or at one go, depending on the terms and conditions of the financial institute.
- Home improvement
When you wish to renovate the house by repainting it, modifying the structure, fixing the extensive plumbing around the house, etc., you can opt for this loan. It may seem similar to a home extension loan, but you can clarify your needs with the representative of the financial institute, if you are confused as to which of the two loans you should apply for.
- NRI home loans
An NRI looking to buy a house in India can apply for this loan. It has special terms and conditions which you may not find for other housing loans. However, not many lenders offer this type of housing loan.
- Bridge loans
If you wish to buy a new house with the funds received by selling your current one, then this loan is for you. This loan helps you buy the new house while you wait for a buyer for the old house.
- Stamp duty loans
When you need funds to pay for the stamp duty on the new house, you can opt for this specific loan. Again, this loan is not offered by many financial establishments.
Now that you have some more clarity on the multiple financing options in front of you, we hope that you soon move into your dream home.