In India, various types of home loans cater to different needs. Here are the main types:
1. Home Purchase Loan
- For buying a new or resale residential property.
- Most common type of home loan.
2. Home Construction Loan
- For building a house on a plot you already own.
- The loan is disbursed in phases as construction progresses.
3. Home Improvement Loan
- For renovating, repairing, or upgrading an existing home.
- Covers expenses like painting, flooring, plumbing, etc.
4. Home Extension Loan
- For expanding an existing home (e.g., adding rooms, floors).
- Similar to a home improvement loan but specifically for structural additions.
5. Land/Plot Purchase Loan
- For buying a residential plot to build a house in the future.
- Construction usually has to begin within a stipulated time.
6. Balance Transfer Home Loan
- Allows transferring an existing home loan to another bank or lender for better interest rates or benefits.
7. NRI Home Loan
- Designed for Non-Resident Indians (NRIs) to purchase property in India.
- Follows RBI regulations and requires specific documentation.
8. Home Loan Top-Up
- Additional loan amount over an existing home loan.
- Can be used for personal needs, home renovation, or any other expense.
9. Pradhan Mantri Awas Yojana (PMAY) – Subsidized Loan
- Government-backed scheme offering interest subsidies for economically weaker sections, low-income, and middle-income groups.
10. Reverse Mortgage Loan
- For senior citizens who own property; they get regular payments from a bank in exchange for their property, which is repaid after their lifetime.
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