5 Types Of Home Loans You Should Know About
By Kolte-Patil Team | Last Updated: March 29, 2026
Key Takeaway
With house prices sky-rocketing, a home loan is the best means to purchase your dream home. But did you know there are different types of home loans available to suit various needs?
With house prices sky-rocketing, a home loan is the best means to purchase your dream home. But did you know there are different types of home loans available to suit various needs? Here are 5 you should know about before you apply.
Here are 5 home loans you should know about.
Understanding the Types of Home Loans
1) Land-purchase loan –
Land-purchase loans are for buying a plot for investment purposes or for constructing a house. Banks usually lend up to 80-85% of the price of the plot or land.
2) Home-purchase loan
A home-purchase loan- is the most popular for buying a residential property. Financial institutions generally provide up to 80-85% of the house market value as loan amount. The interest rate can be fixed, floating or hybrid.
3) Home-construction loan-
Choosing the Right Loan for Your Needs
Individuals who wish to construct a house on a plot owned by them can apply for a home construction loan. The plot should have been bought within a year, for the cost of the land to be included in the loan amount. Otherwise only the estimated cost of construction is considered.
4) NRI-home loans-
Non-resident Indians who are interested in buying residential property in India can avail of specialised NRI-home loans.
5) Home-conversion loans-
Individuals who have taken a house on loan, but wish to move into another property can apply for a home conversion loan to transfer the loan on the new house.
Umang Premiere (Registered with RERA under Registration No. P52100000655 available at website: http://maharera.mahaonline.gov.in) of Kolte-Patil Developers offers pocket-friendly 1 & 2 BHK apartments in Wagholi. Home loans bring you one step closer to owning your dream home. To check out these affordable apartments with modern amenities visit- www.koltepatil.com
Explore more Kolte-Patil projects in Pune. Verify RERA registration details on the MahaRERA official website.
arfat@netbiz.in is a content contributor at Kolte-Patil Developers, one of Pune's leading real estate companies with 30+ years of experience.
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Frequently Asked Questions
What is understanding the Types of Home Loans?
1) Land-purchase loan – Land-purchase loans are for buying a plot for investment purposes or for constructing a house. Banks usually lend up to 80-85% of the price of the plot or land.
What is choosing the Right Loan for Your Needs?
Individuals who wish to construct a house on a plot owned by them can apply for a home construction loan. The plot should have been bought within a year, for the cost of the land to be included in the loan amount. Otherwise only the estimated cost of construction is considered. Non-resident Indians who are interested in buying residential property in India can avail of specialised NRI-home loans.
