Home loans Tips: How many types of home loans can be taken, know full details

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There are many types of home loans available in the market, common people should know about them thoroughly before taking a loan so that they can get the right loan as per their requirements.

Buying a house and property is usually quite expensive and beyond the control of ordinary people. In such a situation, taking a home loan is the safest and easiest way. This is the most popular way to invest money in real estate. It also has many benefits. Well, there are many types of home loans available in the market. Many of these are not even known to potential buyers. Let us know how many types of loans we can get for our needs.

Home Purchase Loan: This loan is ideal for those who have to buy a new or existing house or property. Home loans can be availed at a fixed or floating rate and the repayment tenure can be extended up to 30 years.

Pre-approved home loan: This is a loan that is meant for prospective home buyers who have already passed the primary level constraints for creditworthiness, income requirements, and financial stability imposed by the bank.

Home Construction Loan: If you are planning to build a house or a residential unit on some piece of land, then a home construction loan is the ideal option for you. You can avail of this loan for a maximum tenure of 15 years.

Plot Loan: A plot loan is a type of home loan specifically for buying a plot of land for the construction of a house. The loan amount disbursed under this loan will depend on the value of the plot you wish to buy and your credit profile, among other things.

Top-up Loan: A top-up loan, as the name suggests, is a loan that a borrower can avail of in addition to his existing home loan. This loan can be used to meet personal needs such as renovating an existing property, expanding your business, funding your child's education, financing a wedding, etc.

Home Extension/Renovation Loan: This is the ideal home loan for those who want to renovate their existing property, or want to extend it. The loan can be used for interior or exterior renovation/improvement such as whitewashing/painting, plumbing/sanitation work, flooring or tiling, construction of additional rooms, etc.

Home Loan Balance Transfer: If you are looking for better terms on your existing home loan, then a home loan balance transfer is one option that you can explore. Here, the outstanding home loan balance is transferred from the existing lender to a new lender, usually with more favorable terms such as a lower interest rate, or a longer repayment tenure.