A home loan is the most ubiquitous loan in India. You can find them everywhere. With the Indian government actively pursuing the cause of 'Housing For All,' home loans are bound to increase more than before.
Finding the best home loan in India is not challenging when you know the various types of home loans.
Scroll down to know about the seven different home loan types available at the lowest interest rates in India.
The Seven Different Home Loan Types in India in 2021
The following are the seven most popular home loan types in India:
1. House Purchase Loan
A house purchase loan is often regarded as the best and the most popular home loan type in India. You can avail of this loan when you want to buy a property to live in it or for investment purposes. In India, home purchase loans' interest rates usually start from 7.35%, and you can get up to 90% of the house's purchase value as the loan.
You can calculate your EMI with home loan emi calculator before purchasing a house. Also check its resale value, as lenders verify the location, builder's reputation, and resale value before approving the loan.
2. Home Improvement Loan
A home improvement loan is the best home loan in India when you want to renovate your home. Borrowers use the loan amount to undertake structural repairs of their property or renovate a newly acquired property.
You may also use the loan amount to carry out electrical, plumbing, or painting work. These home loans are available at ultra-low interestratesinIndia, and you can conveniently repay the loan before 30 years.
3. Home Construction Loan
You can apply for a home construction loan if you own land and construct your dream home. But, if you do not own land, you may apply for a plot loan to get funds for the land purchase before constructing the house.
The best home loan in India is the one that allows you the flexibility to shift from house construction to home purchase. Home constructions loans are best suited to fulfil your cherished dream of owning a house.
4. Home Conversion Loan
If you have already availed of a loan for purchasing or constructing a house and wish to buy a new house, you can apply for a home conversion loan.
It is the best home loan in India to construct or buy more than one property. When applying for a home conversion loan, the lender transfers your current loan balance to the new one.
However, the interest rate of home conversion loans might be a little higher than the average home loan interest rates in India.
5. Residential Plot Loan
People willing to purchase residential plots for construction of houses or investment apply for plot loans. Plot loan interest rates in India usually start from 8.35% and go up to 10.55%.
Generally, lenders approve 90% of the plot's purchase price for a loan amount of up to INR 20 lacs, 80% for a loan amount between 20 lacs and 75 lacs, and 75% for a loan amount above 75 lacs.
6. Home Extension Loan
A home extension loan is the best loan in India for people willing to add more space to their property. You can use the loan amount to construct extra rooms for children, a kitchen, a guest room, or anything else.
When you apply for a home extension loan, the lender considers the property's future value to decide the loan amount.
7. Loan for NRIs
Any Non-Resident Indian (NRI) or Person of Indian Origin (PIO) can apply for an NRI loan. The borrower can use the loan amount to construct, purchase, repair, or renovate any freehold residential property in India.
Lenders usually approve a loan amount of up to 80% of the property's market value, and the interest rates start from 9.25%.
Conclusion
The best home loan in India is one that suits your needs and provides the best interest rates. Home loans are flexible loans with a repayment term of up to 30 years.
This article was created in association with PNB Housing.