Comprehensive Guide to Different Types of Home Loans in India – Loan Bazaar

Key Takeaways

• Home loans in India cater to a wide variety of needs, from purchasing a home to renovating or extending it.
• Specialized loans such as NRI Home Loans, Bridge Loans, and Top-Up Loans address unique borrower requirements.
• The Pradhan Mantri Awas Yojana (PMAY) subsidy offers significant savings
• Loan Bazaar provides expert guidance, helping you choose and secure the ideal home loan based on your financial goals.

1. Home Purchase Loan

A home purchase loan is the most common type of loan designed specifically for buying a new or pre-owned property. Borrowers can finance up to 80%-90% of the property’s value, depending on the lender and their eligibility. This is an ideal choice for first-time buyers looking for their dream home.

Loan Bazaar simplifies the process of availing a home purchase loan by connecting you with multiple lenders offering competitive interest rates and personalized recommendations based on your financial profile.

2. Home Construction Loan

For individuals looking to build a house on a plot of land they own, a home construction loan provides the necessary funding. Unlike purchase loans, the disbursement of this loan is done in stages, linked to the construction progress.

• Key Benefit: Tailored for those who want custom-designed homes.
• Eligibility: Borrowers need to provide a detailed construction plan and cost estimate approved by an architect or engineer.

Loan Bazaar’s experts can help you navigate the documentation and find lenders offering the best terms for construction loans.

3. Home Improvement Loan

This loan is perfect for those wanting to renovate or repair their existing property. Whether it’s upgrading interiors, adding new amenities, or repairing structural damages, a home improvement loan caters to such expenses.

• Key Benefit: Lower interest rates compared to personal loans for similar purposes.

With Loan Bazaar, you can access tailored home improvement loan options at competitive interest rates to enhance your living space.

4. Home Extension Loan

If you plan to add extra rooms, floors, or extend your existing home, a home extension loan can help fund your project. It’s especially useful for growing families requiring additional living space.

Loan Bazaar makes it easy to compare and select home extension loans from reputed lenders, ensuring a seamless experience

5. Land Purchase Loan

A land purchase loan is suitable for individuals planning to buy a plot of land for investment or construction purposes. Borrowers can later apply for a construction loan on the same plot if needed

• Key Benefit: Financing for both urban and rural land purchases.

Loan Bazaar assists you in securing land purchase loans by offering expert advice and access to multiple lenders.

6. Balance Transfer Home Loan

If you’re unhappy with your current home loan interest rate or terms, a balance transfer home loan allows you to switch your existing loan to another lender offering better interest rates and terms. This option can save significant costs over time.

• Key Benefit: Reduced EMIs and better service.

Loan Bazaar helps you evaluate your options and facilitates a hassle-free balance transfer process to maximize your savings.

7. NRI Home Loan

Non-resident Indians (NRIs) can also avail themselves of home loans to purchase, construct, or renovate properties in India. These loans are specifically designed to cater to the financial needs of NRIs, considering their unique eligibility criteria.

• Key Benefit: Convenient application process with flexible repayment options.

Loan Bazaar’s dedicated NRI loan services provide personalized solutions for NRIs to achieve their property goals in India.

8. Top-Up Loan

A top-up loan allows existing home loan borrowers to borrow additional funds over and above their current loan. It can be used for personal or professional purposes, including home renovation, education, or business expansion.

• Key Benefit: Lower interest rates compared to personal loans.

Loan Bazaar enables you to access top-up loans effortlessly, ensuring quick approvals and favorable terms.

9. Bridge Loan

A bridge loan is a short-term loan designed for individuals who wish to purchase a new property while selling their existing one. This loan bridges the financial gap until the sale is completed.

• Key Benefit: Ideal for buyers transitioning between properties.

Loan Bazaar simplifies the bridge loan process by connecting you with lenders who understand your immediate financial requirements.

10. Pradhan Mantri Awas Yojana (PMAY) Subsidy

Under the government’s PMAY scheme, borrowers from eligible categories can avail of subsidies on interest rates for purchasing or constructing homes. This initiative aims to promote affordable housing for all.

• Key Benefit: Significant savings for first-time homebuyers in eligible income brackets.

Loan Bazaar provides end-to-end assistance in understanding and applying for the PMAY subsidy, ensuring you make the most of this government initiative.