Home loan: 10 type of home loan in India

Many of us has a perception that we can only buy home loan for new home or plot we are planning but actually there are different type of home loan is available according to customers need here we have explained different type  of home loan available with the banks and other private lenders.

1. Home purchase loan: it is most common home loan availed by the most of the people.you can get this home loan if you are planning to buy new apartment or plot.

2. Home construction loan: Don’t confuse this loan with home purchase loan; it is entirely different
from that it involves construction of new home in the already existing property.

3. Home extension loan: if you are thinking to add one more room or any other such alteration in your owned house you can opt for this loan.

4. Home improvement loan:  However, if your want to do any renovation work or want to do some repair work this is the right loan for you.

5. Home conversion loan:  if you think that you have to stick with your old house because you are still paying the home loan than leave you worries and go ahead with home conversion loan. you can get this loan .you can shift to new house and your previous loan and extra money needed will be added to your new home loan and yes you don’t need to do prepayment of previous loan.

6. Land purchase loan: You can avail this loan to buy new plot or land where your wish to construct new house or it can be for investment purposes.

7. Bridge loan: These are advanced loans which are given for short term (less than two years).you can make advantage from this loan when you are planning to buy new home but still can’t find borrower for your old home, but in this case lender will mortgage your new house This loan is also known as gap loan.

8. Balance –transfer – loan: This loan gives you freedom to change your lender or shift loan anytime. Mostly it is used to transfer loan from high rate of interest to low rate of interest or if you are not satisfied with the services provided by current lender.

9. Stamp-duty-loan: your can use this loan to pay off stamp-duty charges on the purchase of property. This loan can be used only for stamp duty charges. Although this loan is not much popular but if you wish you can opt for it.

10. Re-finance loan: The process of repaying the previous loan by applying for another loan from current lender or new lender.