A Home Purchase Loan is a type of housing loan that helps individuals buy a new or resale residential property—such as a flat, house, or bungalow. It is offered by banks, housing finance companies, and NBFCs. This is the most common type of home loan in India and is usually repaid through monthly EMIs (Equated Monthly Installments) over a tenure of up to 30 years.
A Home Construction Loan is a type of housing loan provided to individuals who want to build a house on their own land (instead of buying a ready or under-construction property). The loan is given in phases, based on the progress of construction, and typically has a repayment period of up to 30 years. It is ideal for people who already own a plot or plan to buy land and build on it.
A Home Improvement Loan is a type of personal or housing loan that provides funds for renovating, repairing, or upgrading your existing home. It is offered by banks, NBFCs, and housing finance companies and can be used for interior work, painting, tiling, plumbing, remodeling, electrical work, furniture upgrades, and more. Unlike a full home loan, this is for enhancing your current residence, not purchasing or constructing a new one.
A Home Equity Loan, also known as a Second Mortgage, is a type of secured loan where you borrow money against the equity of your existing home. “Equity” is the current market value of your home minus any outstanding loan balance on it. In simple terms, you’re using the value you’ve already paid off in your home to borrow additional funds for any purpose like education, business, renovation, medical expenses, or debt consolidation.
A Home Equity Line of Credit (HELOC) is a revolving credit facility that allows you to borrow money multiple times against the equity in your home, similar to how a credit card works. You’re approved for a maximum credit limit, and you can withdraw funds as needed, repay, and borrow again—without reapplying each time. It is secured by your home (like a mortgage), and interest is charged only on the amount you actually use, not the full limit.
A Reverse Mortgage Loan is a special type of loan designed for senior citizens (aged 60 or above) who own a house but have limited income. Unlike regular home loans where you pay EMIs, in a reverse mortgage, the bank pays you monthly, quarterly, or as a lump sum by using the value of your home as collateral.