A home loan is an amount an individual borrows from a financial institution such as a housing finance company to buy a new or a resale home, construct a home or renovate or extend an existing one. The money is borrowed at a specific interest rate and repaid within a particular duration in smaller instalments known as EMIs (Equated monthly instalments).

In India, financial institutions offer different types of home loans to suit the specific needs of customers.

• Home Loans This is the most common type of home loan. As the name suggests, these loans are meant for buying a new apartment, row house, or bungalow, from a developer or a development authority. You can use this type of loan to purchase under-construction or ready properties.
• Home Construction Loan You can avail a home construction loan if you already own a plot and require funds for the construction of the house on that land.
• House Renovation Loan If you already own a house and want to renovate it, you can apply for a house renovation loan. You can use a house renovation loan for painting, tiling, roof repairs, etc.
• Home Extension Loan As your family grows, you may need a bigger house to accommodate all the members comfortably. A home extension loan could be helpful in such a situation. You can get this type of loan to fund the cost of adding a new room/floor to your home, extending the kitchen, building a new bathroom, etc.
• Plot Loan