What is the difference between a property loan and home loan?

In order to build or buy a home, Home Loan can be taken to realize this dream. On the other hand, property loan or a Loan Against Property is primarily taken by using the existing property as a collateral.

Different Types of Home Loans in India

Q: Who can be a co-applicant for the loan?

A few relations are allowed to be a co-applicant for Home Loan. A husband and wife can be co-applicants. A son and an unmarried daughter can apply together. Brothers can also take a Home Loan together. However, a brother-sister or sister-sister cannot be co-applicants.

Different Types of Home Loans in India | Bajaj Housing Finance

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Home Loan Types

There are several types of Home Loans available in India, but it can be challenging to determine which one is right for you. People have unique needs and expectations when it comes to buying a home, so it is essential that you find a fit that is both suited to your housing requirements and your current financial standing. This article details the types of Home Loans available to you, so you can make an informed choice, after evaluating your needs.

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Home Loans for Purchasing Property:

An aspiring homebuyer has several loan options at their disposal if their eligibility and financial standing are strong and meet the basic lending criteria.

Home loans for purchasing property
Home Loans in their purest form are used to purchase a property – be it an under-construction or read-to-move-in one. In such a case, the lender retains a degree of ownership of the property until the borrower has cleared off all their dues. The borrower can only take back the ownership of the house after full loan repayment.
Home Renovation Loans:
Home renovation loans cater to home improvement projects or expenses one might incur during a renovation. 
Home Expansion Loans:
 Not to be confused with home renovation loans, home expansion loans are meant to fund the cost of expanding your existing housing property.
Home Construction Loans:
Home construction loans fund the construction of a new house from scratch and not new constructions on an existing property, unlike expansion loans. Some lenders allow the cost of the plot to be included in the loan amount, provided the plot has been purchased in under a year of seeking the loan.
Home Loan Balance Transfers:
 This loan facility allows you to transfer your ongoing Home Loan to a new lender to leverage better lending terms and make possible savings on your current EMI amount.
Joint Home Loan:
A joint Home Loan is a housing loan taken by two or more people to divide the liability and boost application’s eligibility. This is beneficial on several counts, and also helps the borrowers save substantially through tax rebates.

Borrowers are advised to diligently research what market lenders are prepared to offer and how to meet their eligibility criteria to benefit from their Home Loan terms. 

Note: The information provided on this page is generic and Bajaj Housing Finance may or may not offer all Home Loan types mentioned.

*Terms and conditions apply.

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Home Loan Interest Rates in India 2025

Bajaj Housing Finance offers Home Loans at competitive interest rates starting at 7.45%* p.a. for salaried applicants. To know our interest rates, click here.

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Documents Required for a Home Loan

You will need the following documents*** when applying for a Bajaj Housing Finance Home Loan:

KYC papers, which include your identity and address proofs
Mandatory documents such as your PAN Card or Form 60
Recent passport-size photographs
Form 16 and the latest salary slips if you are salaried, or ITR documents and a Profit & Loss Statement for the past two years if you are self-employed
Bank statements for the previous six months
Proof of business, showing at least three years of business continuity, for applicants who are self-employed or running a business

***This list is indicative.

Eligibility Criteria of a Home Loan

You need to meet the following eligibility criteria to apply for a Home Loan with us:

Employment Type	Eligibility Criteria
Salaried	Must be an Indian resident (NRIs are also eligible) Age should be between 23 and 67 years** Should have at least 3 years of work experience in a private or public organisation or an MNC
Self-Employed	Must be an Indian resident Age should be between 23 and 70 years** Should have a stable income from a business with a minimum vintage of 3 years

****The upper age limit is considered as age at the time of loan maturity. Additionally, the upper age limit for applicants is subject to change, depending on the property profile.

Benefits of a Home Loan

With Bajaj Housing Finance, you stand to gain from the following benefits:

Attractive interest rates, starting from 7.45%* p.a. for salaried applicants
High loan amount eligibility based on income, credit score, and property value
Flexible repayment tenure of up to 32 years
Quick disbursal in 48 Hours* after document submission and verification
Doorstep documentation pick-up for added convenience

How to Apply for a Home Loan Online with Bajaj Housing Finance?

You can apply for a Home Loan with Bajaj Housing Finance by visiting our nearest branches or filling out our online application form. To apply online, follow the steps given below:

Visit the housing loan application form.
Fill in your basic details such as your name, contact number, and employment category.
Choose the type of loan you wish to apply for and enter your monthly income.
Add your PIN code and mention the loan amount you are looking for.
Click on ‘Generate OTP’, enter the OTP you receive, and then select ‘Proceed’.
Provide the required financial information. The specifics may vary depending on your employment type.
Once all fields are completed, submit your application by clicking on ‘Submit’.

Our representative will connect with you in 24 hours* once you submit your application.

*Terms and conditions

Frequently Ask Questions (FAQs)_types_of_home_loan

Types of Home Loans: Frequently Ask Questions (FAQs)

A few relations are allowed to be a financial co-applicant for Home Loan. A husband and wife can be co-applicants. A son and an unmarried daughter can apply together. Brothers can also take a Home Loan together. However, a brother-sister or sister-sister cannot be co-applicants.

In order to build or buy a home, a Home Loan can be taken to realise this dream. On the other hand, a property loan or a Loan Against Property is primarily taken by using the existing property as a collateral.

Yes, a Home Loan is a type of mortgage. A mortgage is a type of loan in which the borrower uses a property as a collateral for the loan. In the case of a Home Loan, the borrower pledges the residential property that they are purchasing or constructing as a collateral for the loan.

With Bajaj Housing Finance, you can repay your Home Loan comfortably over a flexible repayment tenure of up to 32 years.

Yes, Bajaj Housing Finance offers a Home Loan Balance Transfer facility with which you can transfer your existing loan to us and benefit from a lower interest rate or flexible loan terms.

Existing customers can avail of a Top-up Loan above their existing Home Loan to meet housing-related expenses. Borrowers can also avail of a Home Loan Top-up by opting for a Home Loan Balance Transfer, which lets you transfer your current loan to Bajaj Housing Finance to enjoy a more favourable interest rate.