Different types of home loans available

Different types of home loans available

Following are the variety of home loans available-

1. HOME PURCHASE LOAN: This is the common loan for purchasing a home. Stamp duty portion is also being financed under this type of Loan.

2. HOME CONSTRUCTION LOAN: This loan is available for the construction of a new home. 

3. HOME IMPROVEMENT LOAN: This loan is given for undertaking repairs, renovations and/or upgradation to your home. 

4. HOME EXTENSION LOAN: Home extension loans are given for expanding or extending an existing home. For example, addition of an extra room, etc. 

5. HOME CONVERSION LOAN: Available for those who have financed the present home with a Home Loan and wish to purchase and move to another home for which some additional funds are required. Through a Home Conversion Loan, the existing loan is transferred to the new home, including the additional amount required, eliminating the need for pre-payment of the previous loan. 

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6. LAND PURCHASE LOAN: This type of loan is sanctioned for purchase of land for home construction. 

7. BRIDGE LOAN: The Bridge Loan is designed for people who wish to sell the existing home and purchase another. The bridge loan helps finance the new home, until a buyer is found for the old home. 

8. BALANCE TRANSFER LOAN: Balance Transfer loans help you pay off an existing home loan by availing a new loan from another willing lender institution. 

9. REFINANCE LOAN: This loan helps you pay off the debt you have incurred from private sources such as relatives and friends for the purchase of your present home.  This type of loan can also be taken for your business or for some personal functions mortgaging your house. This type of loan may extend may fetch higher Interest rate.

10. STAMP DUTY LOAN: This loan is sanctioned to pay the stamp duty amount that needs to be paid on the purchase of a property. 

11. LOAN TO NRIs: This loan is tailored for the requirements of Non resident indians (NRIs) wishing to build or buy a home in India. These loans are provided by eligible financial institutions in accordance with the guidelines issued by Reserve Bank of India/ National Housing Bank from time to time.