All You Need to Know About Home Loans

Not only is housing a fundamental need, but owning a home of one’s own is a life-long dream for many. However, if you’re wondering about how to grapple with property prices that are a little out of your price range, consider availing of a housing loan to make the process of owning a home easier. A Home Loan improves your chances of being able to purchase the house of your dreams without having to drain your funds.

Our Guide to the Types of Home Loans in India

1. Home Loans for Property Purchase

Home Loans for Property Purchase is the type of loan that can be borrowed to fund the purchase of a residential property.

2. Loans for New Construction

Such loans are different than Home Loans, as the end-use for the funds is the construction of a new residential structure on an empty plot of land, which belongs to the borrower. 

3. Home Expansion Loans

These loans specifically cater to the costs associated with expanding or enhancing the borrower’s residential property. Typically, a loan like this would cover the costs of constructing new rooms or floors, etc. 

 4.Home Loan Balance Transfers

This loan offering allows borrowers to transfer the balance of their existing Home Loan from their current lender to another, typically to take advantage of lower interest rates, better terms, or improved services offered by the new lender.

5. Top-up Loan

Often offered as an extension of a Home Loan Balance Transfer, Top-up Loans offer sizeable funding to borrowers at competitive rates, that can be used to address any home related expense. 

6. Refinancing Your Home for a Makeover

Pre-existing home loan borrowers who are now looking to relocate might utilize the funds from a home conversion loan to purchase a new residence. 

Additional Read: Home Loan Terminologies You Must be Aware Of 

Additional Read: Tips on How to Pay your Home Loan Faster 

There are several Home Loan types available for borrowers to choose from so they can address their unique requirements. No matter what the need, borrowers should ensure that they also research the loan terms and evaluate their own financial standing to arrive at a repayment plan that doesn’t strain the finances.

With a CIBIL Score of 750 or above, borrowers have a greater chance of qualifying for the lowest home loan rates available. Prospective borrowers should also spend time optimising their CIBIL scores and creditworthiness.

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