Usually, we all take home loans from the bank to buy a house. But do you know that banks offer five types of home loans?
Let us know the differences between these five home loans and when we can take them.
Financial experts say that knowing different homes is profitable because you can take a home loan according to your need and save well.
So let’s know the five types of home loans and their benefits.
1. Home loan for house construction
Home construction loan, as the name suggests, is for those who want to construct their own house.
This may include the cost of the plot and building the house. The cost of the plot is covered only if the loan is taken within one year of its purchase.
2. Home loan for buying a house
A home purchase loan is a loan taken to buy a new flat or house. If you are buying a new property,
then up to 90 percent loan is available from the bank. Banks easily give loans up to 80%. The loan tenure can be from 20 to 30 years.
3. Home loan for expansion of the house
If a person wants to increase the size of his existing house, he can take a loan from the bank. This loan is called Home Extension Loan.
4. Home Loan for Home Renovation
If a person wants to repair, paint or renovate his existing house, he can take a loan from the bank. Banks offer home improvement loans for this.
5. Bridge Home Loan
This home loan is given until the owner sells the existing property after buying a new one.
This home loan helps bridge the funding gap arising from the time taken to sell the existing property.
Bridge loans are generally for a short period. Banks give this loan for a maximum period of two years.
