InvestorQ : What are the various types of home loans that can be given to customers?
Ashok Patkar made post

What are the various types of home loans that can be given to customers?

Ankita Patil answered.
3 years ago

There are various kinds of home loans that can be lent to Indian customers. The most popular one, however, is the home purchase loan wherein you borrow some money from a bank or non-banking finance companies (NBFCs) to purchase a house for yourself.

Based on various other requirement surrounding a home, there are various other home loans such as:

- Land purchase loans: These are the loans that are granted to you for the purchase of land on which you intend to build a house.

- Home purchase loans: These are the most common type of home loans that are granted when you purchase a home.

- Home construction loans: This is the type of loan that is granted to individuals for the construction of a house on a self-owned plot of land.

- Home expansion/extension loans: This kind of loan is granted to individuals who want to expand their existing homes to include new construction such as an additional room, floor, etc.

- Home improvement loans: These loans are meant for existing home owners who lack sufficient funds to renovate their existing home. Thus, by availing of this loan, you can upgrade your own home however you choose.

- Home conversion loans: By using this type of home loan, an existing home owner can add to their existing loan so that he/she can purchase a new house. Do note that this type of loan is only applicable to existing home owners.

- NRI home loans: These home loans are specifically designed to provide financing solutions to non-resident Indians so that they, too, can purchase a home in India.