‘Home Loan’, in a true sense, as the name indicates can only be one loan that is to purchase a house with the help of the funding provided by the banks and NBFCs. However, there are several variants related to home loans. It can be classified under following categories.
Home Loan: This is the loan provided to buy a house which is already built or for constructing a new house.
Plot or Land Loan: This is the loan provided to purchase a piece of land for building a house or any other commercial purposes. Buying land for agriculture also falls under this category.
Loan Against Property: This loan is provided by the banks against the property that is owned by the borrower. The funding can be used for home renovation or various other purposes.
NRI Home Loans: Non-resident Indians can get a home loan if they want to purchase a property or build a house in India. The rates, terms and conditions differ for such applicants.