- Construction loan
There are many varieties of home loans. Home construction loan or home loan is the most common one. This is given by the lender for the purchase of a house.
- Home improvement loan
If a homeowner wants to undertake repairs or home improvements, he can approach a bank for a home improvement loan. He can undertake the repairs and renovations with this money. Plumbing, painting, electrical jobs and wood work come under this category.
- Site loan
This loan can be availed for the purchase of a site. Some banks insist that you construct a house on it within a stipulated timeframe.
- Balance transfer loan
This helps you pay back an existing home loan that charges a higher rate of interest, and avail a loan with a lower rate of interest.
- Bridge loan
Some people sell their house to purchase another one. A bridge loan helps finance the new home, until a buyer is found for the old one.
If you need money for home improvement, extension or for purchase of a piece of land, you can approach a bank. The money lent out for these ancillary needs will be lesser and the tenure is shorter when compared to home loans. If you have already taken a home loan from the lender, getting these other loans sanctions will be easier.
There are special loan packages for NRIs too.
