What are the Different Types of Home Loans in India?
Buying a home is a significant milestone, often requiring financial assistance in the form of a home loan. In India, there are several types of home loans tailored to meet diverse needs and circumstances. Understanding these options can help you choose the best one for your situation. Let’s explore the different types of home loans available in India. 1. Home Purchase Loan 1.1. For Buying Ready-Made Properties This is the most common type of home loan , used to purchase a new or pre-owned residential property. The loan amount is usually a percentage of the property's value, typically up to 80-90%. 1.2. Interest Rates and Tenure These loans come with flexible repayment tenures, ranging from 5 to 30 years, and can have fixed or floating interest rates. 2. Home Construction Loan 2.1. For Building a New Home If you own a piece of land and plan to construct a house on it, this loan is ideal. The loan is disbursed in stages, corresponding with the construction phases. 2.2. Documentatio