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Here are 6 types of home loans you can choose from.

More and more people are opting for a home loan to fulfill their home ownership plans. Seeing this, many of the lenders in the market have started to offer different kind of loans, each designed to meet specific needs & requirements. This article will discuss in brief some of the most common types of house loans and will help you decide which one is best for your needs. Home loans for a new home: The first is the most obvious & popular one and that is a loan to buy a new home. With these loans you can buy a flat, row house, bungalow from private developers in approved projects or properties from Development Authorities such as DDA, MHADA etc. Interest rates: 8.35% to 9.05% Loan Tenure: Maximum 30 years. Loan amount: 75 to 90 percent of the property’s value. Loans for resale property: The next type of loan is the resale loan. This can be used to buy a home in an existing co-operative housing society or privately built up homes. In comparison to a new home, a resale home helps you save time by allowing you immediate possession. Interest rates: 8.35% to 9.05% Loan Tenure: Maximum 30 years. Loan amount: 75 to 90 percent of the property’s value. Home Loans for construction: If you wish to construct & design your own home, then you can use construction loans to meet your needs. These loans can be availed for construction on a freehold / lease hold plot or on a plot allotted by a Development Authority. Interest rates: 8.35% to 9.05% Loan Tenure: Maximum 30 years. Loan amount: 75 to 90 percent of the property’s value. The next type of loan is a balance transfer home loan. If you already have a pre-existing loan but you find that another lender is providing you a better interest rate, you can simply transfer the balance amount to the lender of your choice. Along with a lowered interest rate, some balance transfer HDFC home loans also allow you the freedom to pick a top-up amount that can be as high as 35 lakh! Interest rates: 8.35% to 9.05% Loan Tenure: Maximum 30 years. Loan amount: 75 to 90 percent of the property’s value. Home extension loans: As your family grows, you might feel the need to extend your home so as to meet their requirements. You can avail an extension loan to extend or add space to your home such as additional rooms, etc. Interest rates: 8.35% to 9.05% Loan Tenure: Maximum 20 years. Loan amount: 75 to 90 percent of the property’s value.

Plot home loans: As the name suggest, these types of loans help you with finance to buy a plot that you have your eye on. These loans are most commonly used to buy a plot through direct allotment or a resale plot. Tenures with these kinds of loans are slightly restricted, with leading lenders providing tenures up to 15 years. The interest rates are also a tad bit higher ranging from 8.60% to 9.30%. Interest rates: 8.60% to 9.30% Loan Tenure: Maximum 15 years. Loan amount: 75 to 90 percent of the property’s value.

Bridge loans: If you are thinking of buying a new home with the money earned from selling your old home, this type of loan helps speed up the process. With this kind of loan you don’t need to wait for your existing home to be sold, simply approach the lender and they will sort you out with finances needed. The tenures are normally between 2 and 4 years and the interest rate can be as high as 13.15%. Interest rates: 12.30% to 13.15% Loan Tenure: Maximum 2 years. Loan amount: 75% to 80% of the property’s value.

So if you are shopping for home loans, these are some of your options. Note that the figures in this article are tentative, you can even negotiate the terms such as the interest rate, tenure, loan amount, repayment schedule, etc.