What Are the Various Home Loan Options Available In India?

August 29, 2022 | Indextapadmin

Homeownership is one of the most significant milestones in a person's life, especially when you own a home in big metropolitan cities like Delhi, Bangalore, or Mumbai. Although a sentimental investment, residential real estate in India is a huge investment market.This sector has seen rapid growth as demand for residential spaces has increased over time.

 As the price of residential real estate in India rises, so does the demand for home loans. There are several advantages to it, including:

· Owning a home makes you feel proud.

· Benefits of taxation.

· It allows you to save on rent and so on.

 Let's discuss the various types of home loans and determine which is the best home loan in India:

 Home purchase loan: it is one of the best home loan in India for buying a newly-constructed or under-construction flat, villa, or other property. This loan can also be used to buy used properties.

-       Home expansion/extension loan: Do you want to add more living space and make structural changes to your current home structure but lack the necessary funds? You can easily do that with this loan. It is beneficial for those who have a growing family and require more space, such as constructing new rooms, larger bathrooms, balconies, and so on.

-       Land Purchase Loan: This loan allows you to purchase land on which you can build your own home. You can either buy the land when the market price is low and build on it when you have sufficient funds, or you can keep it as an investment and sell it for a profit when the price is high. 

-       Home improvement loan: Your dream home is the most important investment you will ever make, and it must be well maintained. It needs to be renovated regularly to stay in good condition. This loan assists you by providing funds for a variety of purposes, including painting, tiling, waterproofing, flooring, remodeling, or making repairs to your home.

-       Home conversion loan: When you want to transfer your existing home loan to a different type of home loan without changing banks, you can use a home conversion loan. You can easily do this with the help of this loan by paying conversion fees and moving to a different loan based on your needs. 

-       Home loan balance transfer: When you want to switch your home loan from one bank to another to receive a lower interest rate or better services, Low-interest rates result in smaller EMI payments, making it easier for you to make on-time payments, which will improve your credit score.

-       Home top-up loan: This is an additional loan provided by the bank on top of an existing loan with minimal documentation. This can be used to meet the needs of the borrower, such as wedding expenses, home renovations, and so on. If you already have a Home loan in India, this is a better option because they have lower interest rates than other personal loans.

-       NRI home loans: Home loan in India are only available to Indian citizens, but NRIs can also get loans. NRI home loans from some banks enable non-resident Indians to purchase real estate, whether it is brand new, pre-owned, or still under construction. This loan has a different application process.

In a nutshell, the above are the various types of home loans available in India. To choose the best home loan in India, always research the top home loans and consider your needs.

Visit IndexTap for more information on residential real estate in India.