Different Types Of Home Loans Available In India

Different Types Of Home Loans Available In India

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Loans And Credit

Home loan is generally of two types – Secured and Unsecured. The secured housing loan is not very easy to take as it requires asset as collateral whereas unsecured housing loan doesn’t need collateral security. Interested borrower is not supposed to have good credit rating and the loan can be offered very easily.

Home loan, by definition, is secured finance that requires collateral with proper liquidation value. If you wish to purchase a ready-to-move-in home, then you can pledge the home as collateral for which you need finance. Remember, right of ownership on your home can’t be transferred to you until and unless you pay back the entire outstanding home loan to your lender in timely manner. Types of home loans In India, a home loan has been categorized in many segments to satiate different needs and budgets. The listed categories of housing finances mentioned below will help you enlighten with them properly. They are housing loans that can avail in India. Home Purchase Loan: As the name itself suggests, this kind of loan is available for customers who wish to buy a new ready-to-move-in house. So to say, home purchase loan is given to borrowers who wish to purchase a new home for family for accommodation purpose. Generally the cost of new house is covered up to 85% with this finance. Home Construction Loan: This type of housing finance is optimal for those who wish to purchase a plot of land to construct a home of self-choice. The loan is perfect solution to meet your needs such as to construct dream house rather than buying pre-constructed one. You will be financed up to 85% for maximum tenure so that you can ease out process of home construction. Home Improvement Loan: If you possess a home and want to renovate it to your style, then home improvement loan will be an ideal choice to cover the expenses involved in home improvement work. Depending upon range of the expenses, you can avail the loan accordingly. Home Extension Loan: If you want to add extra rooms to your pre-owned home, but are not able to bear expenses involved in home extension works, then a home extension loan will be an ideal choice for you. This type of housing finance is gaining widespread popularity in India among various home owners. Home Conversion Loan: In fact, this type of home loan is optimal for those who have already taken a home loan to finance an existing home but want to shift to another home. With the help of home conversion finance, a borrower can get existing loan converted to a new home, requiring additional funds. In that case, the new home supplements the previous one and satiates financial requirement for the new home. Bridge Loan: This loan is useful to finance new home while you wish to sell out your existing home. The bridge loan gives you a facility of purchasing a new home while you find a buyer to sell your old home.Home loan

are one of the best deals offered as it can be availed at competitive

home loan rate of interests

. Loan schemes offered quite attractive and suit the budgetary constraints of individuals.

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