There is a myriad of purchases you make in a lifetime. But the most significant one among them is likely to be your home. Owning a house does require a sense of responsibility, and showcases your financial freedom and independence. Finding adequate financing, however, is the biggest hurdle one faces when planning to buy a house. After all, property prices in major Indian cities increase almost every year. In this situation, it is common to take out home loans to finance a house. Home loan in India is available for people wanting to buy a new property, as well as ones who already have a house but want to remodel it or add on extra rooms. 

There are many situations for which taking out home loans would be the ideal option, such as:

• To purchase a house: A lot of people choose to buy a home in their late 20s or 30s, as they start a family. However, not all of them have enough savings to purchase the house of their dreams. This is where home loans come as a huge help. Top NBFCs in India even allow borrowers with no credit history or low CIBIL score to take out home loans in a hassle-free manner and achieve the milestone of getting a house of their own. As the loan is disbursed, you can pay the amount to the property developer and move into the new home.

• To construct a new house: A lot of people want their new home to be tailored to their tastes and needs. Unlike ready-to-move-in properties that might not align with your preferences, choosing to construct a house from group up provides you with the freedom to follow your own design plan. Home loans are available for both borrowers who want to buy a house or build one. To find the ideal loan option for your situation, you should consider comparing the home loan programs of multiple lenders.

• To buy a plot: Many people get a home loan to purchase a plot of land, so as to build a house on it immediately or sometime in the near future. Plots are more affordably priced than already built homes and would be more financially feasible for the borrowers. There are also individuals who buy plots for investment purposes. The plot you purchase now with a home loan is likely to appreciate in value over the next few years, provided that it is advantageously located. Plots are much safer investment instruments than stocks, bonds, and so on.

• Upgrade an existing home: Home renovations are another reason for getting a home loan. Your home may need a new roof, or you might want to add extra rooms to your house as your kids get older. In these situations, you can take out a loan to finance these renovation projects. After all, any major home renovation or upgrade will not be cheap. Renovating your home will also improve its market value, and will come as a huge help if you want to sell off the property in the future.

There are many non-banking financial companies or NBFCs in India that offer loans for all the reasons mentioned above. NBFC home loan interest rates and other details can easily be found online.

 Home loans are among the most common types of loans. A large number of people take out such loans to buy brand-new homes. However, they can also be acquired to buy a new plot of land or renovate an old home. This article basically lists the popular types of home loans.