Understanding the Different Types of Home Loans Available in India

There is no doubt that buying a home is one of the biggest investments one can make during their lifetime. With the increasing property prices, it has become challenging to finance the purchase of a home. This is where home loans can lend you a hand. Home loans are one of the best way to finance the purchase of a home. In India, there are several types of home loans available to cater to specific and different needs. Let’s now discuss the different types of home loans available in India.

1. Home Purchase Loan

A home purchase loan is the most common type of home loan that people avail of. It is used to finance the purchase of a new or resale property. The loan amount is usually up to 80% of the property value, and repayment can last up to 25 years. Repco’s Dream Home Loan is the perfect type of home loan if you’re looking make a home purchase.

2. Home Construction Loan

A home construction loan is taken to finance the construction of a new house on a plot of land that the borrower owns. The loan amount is disbursed in instalments, based on the progress of the construction work. The repayment tenure can go up to 25 years. Repco’s Super Loan is the type of home loan you need if you are looking for the construction of you home on a pre-owned plot.

3. Plot Purchase Loan

A plot purchase loan is taken to finance the purchase of a plot for the construction of your home. The loan amount is usually 75% of the property value and the tenure usually extents up to 10 years. Repco’s Plot Loan is the perfect type of home loan if you are looking to purchase a plot for the construction of your dream home.

4. Plot Purchase and Home Construction Loan

Plot purchase and home construction loan is take to finance the purchase of the plot and construction of residential property within a given timeline. The loan amount is usually 75% of the plot value and 85% of the estimated construction of the residential property, and the loan tenure is usually 25 years. Repco’s Composite Loan is the perfect type of home loan if you are need help financing the purchase of the plot and home construction.

5. Home Improvement Loan

A home improvement loan is taken to finance the repair, renovation, or extension of an existing house. The loan amount can be up to 70% of the estimated repairs, and the repayment tenure can go up to 10 years. Repco’s Home Makeover Loan is the type of home loan you are looking for if home improvement is #1 on your priority list.

6. Home Extension Loan

A home extension loan is taken to finance the construction of an additional space in an existing house. The loan amount can be up to 70% of the estimated repairs, and the repayment tenure can go up to 10 years Repco’s Home Makeover Loan is the type of home loan you are looking for if home extension is on top of your priority list.

7. Home Conversion Loan

A home conversion loan is taken when a borrower wants to sell their existing home and buy a new one. The loan amount is based on the value of the new house, and the repayment tenure can go up to 30 years.

8. Loan for Commercial Properties

This loan is taken when the borrower is looking to finance the purchase/ construction of a commercial property – marriage halls, shopping complex, lodges, hotels, hostels or a warehouse. The loan amount is usually 70% of the purchase or the estimated construction of the commercial property and the tenure is usually 10 years. Repco’s New Horizon Loan is the perfect type of home loan if you are looking to purchase a commercial property.

9. Balance Transfer Home Loan

A balance transfer home loan is taken to transfer the outstanding balance of an existing home loan to a new lender who offers a lower rate of interest. The borrower can save on the interest paid on the outstanding amount by availing of a balance transfer home loan. Repco’s Privilege Loan is the perfect type of home loan if you are looking for balance transfer/takeover of the existing loans at a lower interest rates.

10. NRI Home Loan

An NRI home loan is taken by non-resident Indians (NRIs) to finance the purchase of a property in India. The loan amount can be up to 80% of the purchase value or 85% of the estimated construction value, and the repayment tenure can go up to 10-15 years. Repco’s NRI Housing loan is the type of home loan you are looking for if you want to own a home in India while working abroad.

11. Home Loan for Women

Some lenders offer home loans exclusively for women borrowers. These loans come with a lower rate of interest and are available to both salaried and self-employed women.

12. Loans for Senior Citizen

A senior citizen home loan is taken by borrowers who are above 50 years of age and have a salaried income in pensionable services. The loan payment and disbursement are structured around their retirement-terminal benefits/ pension income. The loan amount is usually 85% of the estimated construction amount of the residential property or 80% of the purchase amount of the residential property. The repayment tenure is usually up to 15 years. Repco’s Fifty Plus Loan is the perfect type of home loan if you are looking to finance your post retirement home.

Conclusion

There are various types of home loans available in India, and it is crucial to choose the right one that suits your needs and financial situation. Whether you are looking to purchase a new house, construct a house, make renovations or improvements to your existing house, or transfer your existing loan to a new lender, there is a home loan available for you. We hope this article has helped you understand the different types of home loans available in India.