2. Home Purchase Loans

The home purchase loans are the most popular and the most commonly available home loan variants. You can take this loan for financing the purchase of a new residential building or an old house from its previous owners. Even in this type of loan, lenders usually offer up to 85 percent of the market value of the house. These loans are provided either on fixed interest rates or floating interest rates or as hybrid (combination of both fixed and floating interest rate) loans. All banking institutions and housing finance companies provide this type of loan.

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3. Home Expansion / Extension Loans

Borrowers can apply for a ‘Home expansion or extension loans’ especially when they want to expand their already constructed house. Expansion includes alteration in the current structure of the residential property to add extra space such as constructing a new room, a floor, a bigger bathroom or enclosing a balcony. Though most of the banks provide loans for these purposes as part of home expansion loans, some banks also lend for the same purposes as part of their home improvement loans. It depends on how a bank categorizes its loans. Some popular banks which provide home expansion loans are HDFC Bank (HDFC Home Extension Loan), Bank of Baroda etc.

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