According to a recent analysis, the real estate sector in India is estimated to reach $1 trillion by the end of 2030. Moreover, this analysis also suggests that our country’s real sector may contribute 13% of India’s GDP by 2025.
This is mainly due to the emergence of fast urbanization and the growth of home loans in India. Before you avail a Bajaj Finserv home loan, you should be aware of the several types of such products offered by financial institutions and reputed HFCs across our country.
Different types of home loans in India
Home loans can be categorized by their type of interest rate and also their purpose. Home loans differentiated by their interest rate types are –
Fixed Interest Rate
Home loans with a fixed interest rate are immune to market fluctuations. For the whole tenor of such a loan, the interest rate offered during the initial agreement with your financial institution will not alter. Hence, the loan EMIs will also be fixed, which adds to the advantages of borrowers in planning their repayment with ease.
Floating Interest Rate
Home loans with a floating interest rate are not immune to market rate fluctuations. If there are any alterations in the market rates, the interest on your home loan will change accordingly.
Home loans categorized by its purpose are –
- For purchase of a house.
- For the construction of a home.
- For expansion or extension of an existing home.
- For home renovation.
Home loans are primarily differentiated based on the rate of interest. It should be noted that the majority of lenders offer housing loans based on floating rates. Hence, it is necessary to consider the interest type before you avail a housing loan.
