What are the types of home loans available?
A home loan is a type of loan offered by banks, financial institutions, and non-banking financial companies (NBFCs) to help individuals purchase a residential property in India. Home loans provide the necessary financial assistance to people who want to buy a house but cannot afford to pay the entire cost upfront.
In India, home loans have become increasingly popular in recent years due to the rising cost of property and the growing demand for affordable housing. Home loans are available for different purposes, such as purchasing a new or resale property, constructing a new property, renovating an existing property, or extending an existing property.
- Home loan balance transfer
Transfer an existing home loan to Bajaj Finserv with a home loan balance transfer. Enjoy competitive interest rates, a top-up loan, long tenor, and more.
- Top-up loan
Get a top-up loan in addition to your home loan and use the high-value amount for weddings, urgent medical procedures, education expenses, or however you deem fit.
- Pradhan Mantri Awas Yojana
Should you qualify, take a Bajaj Finserv Home Loan under the Pradhan Mantri Awas Yojana scheme, and enjoy a maximum subsidy of 6.5% on the interest rate.
- Joint home loans
Make a home loan more affordable by opting for a joint home loan with a spouse, sibling ,or parent. Here, both co-applicants share repayment responsibilities equally.
- Women’s home loan
A home loan for women offers ample funds at a competitive rate so that women can be independent homeowners and build their asset portfolios.
- Home construction loan
As the name suggests, a home construction loan is ideal for those who are constructing a home on a piece of land. It comes with a top-up loan to cover decorating costs once construction is complete.
- Plot for purchase
Buy a plot of land in a city of your choice with easy financing from a loan for land purchase.
Home loan types based on profession
- Home loan for private employees
Bajaj Finance offers home loans for private sector employees, making homeownership more accessible than ever.
Private sector employees interested in home loans should start by assessing their eligibility and conducting thorough research on lenders and loan products. Comparing interest rates, processing fees, and repayment options is essential. Additionally, it is beneficial to seek pre-approval to understand the loan amount you qualify for and to gain a competitive edge in the real estate market.
- Home loan for government employees
If you are a government employee, you can choose Bajaj Finance Home Loan for government employees and avail of loan up to Rs. 15 Crore*. The loan comes with a flexible tenure of up to 40 years and has an attractive rate of interest.
- Home loan for bank employees
Bank employees can choose home loan for bank employees from Bajaj Finance and avail of benefits like low interest rates, flexible repayment tenure, balance transfer facility with top-up loan.
- Home loan for advocates
Bajaj Finance offers home loan at an attractive interest rate starting from 8.50%* p.a. If you are an advocate planning to opt for a home loan, Bajaj Finance can be a good option.
Frequently asked questions
There is a diverse range of property home loans available to cater to varying financial needs. Fixed-rate mortgages maintain consistent interest rates, while adjustable-rate mortgages (ARM) offer initial lower rates that can change periodically. Interest-only mortgages enable interest payments initially, followed by principal and interest.
A home loan, also known as a mortgage, is a financial arrangement that enables individuals to purchase a home by borrowing money from a lender and repaying it over time. There are various types of home loans to suit different needs:
- Fixed-Rate Mortgage: Offers a stable interest rate for the entire loan term.
- Adjustable-Rate Mortgage (ARM): Starts with a fixed rate but can adjust periodically.
- Reverse Mortgage: Converts home equity into cash for older homeowners.
- Construction Loan: Funds new home construction, followed by a traditional mortgage.
- Home Equity Loan: Allows borrowing against existing home equity.
The choice of home loan should align with individual financial situations and homeownership goals.
In India, loans can be classified into four main categories:
- Personal Loans: Unsecured loans for various personal expenses.
- Home Loans: Secured loans for purchasing or constructing residential properties.
- Business Loans: Used by entrepreneurs and businesses for operations, expansion, or capital needs.
- Vehicle Loans: Secured loans for purchasing automobiles.
Additional specialised loan types are also available to meet specific financial requirements, such as education loans, gold loans, and agricultural loans, with eligibility criteria, interest rates, and terms that vary depending on the lender and loan type.