Home Expansion/Extension Loans
Home expansion or extension loans are useful in situations when people want to expand their existing house. Expansion includes alteration in the current structure of the residence to add extra space such as constructing a new room, a floor, a bigger bathroom or enclosing a balcony. Though many banks provide loans for these purposes as part of home expansion loans, some banks lend for the same purposes as part of their home improvement loans. It depends on how a bank has categorizes its loans. Some popular banks which provide home expansion loans are HDFC Bank (HDFC Home Extension Loan), Bank of Baroda etc.
Home Improvement loans
Home improvement loans are availed by individuals who already own a house but lack the funds to renovate it. All kinds of renovations and repair works can be financed using this variant of home loans such as internal and external painting, external repair works, electrical work, waterproofing and construction of underground or overhead water tank etc. ICICI Bank, Vijaya Bank and Union Bank of India are among those banks which provide specialized home improvement loans.
Home Conversion Loans
Those borrowers who have already purchased a house by taking a home loan but now want to buy and move to another house opt for the home conversion loans. Through these loans, they can fund the purchase of the new house by transferring the current loan to the new house. There is no need to repay the loan on the previous home. Though useful, this segment of home loans is accused of being quite expensive. This housing finance scheme is provided by HDFC Bank among others.
NRI Home Loans
NRI home loans is a specialized home loan variant which has been developed to assist non-residents in acquiring housing finance to buy residential property in India. These loans are meant exclusively for the non-resident Indians. The formalities of availing this segment of home loans is similar to the regular home loans which are offered to residents, only the paperwork is a bit elaborate. Almost all public and private sector banks provide NRI home loans.