Who does not like to own a home? Whether you are a billionaire or a commoner, the desire to buy and live in your abode is a vital human instinct. A home is a status symbol for the wealthy few to flaunt within their circles. It is primarily a signature of luxury and probably a longing for privacy.

But home is a basic need for a vast majority of people. They often drain their life savings to get a shelter that provides them safety & security. It is one of the most significant decisions of their life. 

There was a time when the less privileged had no choice but to suppress their desire to own a house. Many wait until retirement to build a nest, only to exhaust their earnings completely. Not anymore! With instant home loans, you can own, build, rebuild and renovate a home anytime you want – even in your 20s.

The Benefits of Owning a House

It is a million-dollar question that is often trending on social media. While the decision to buy a house is a subjective one, there are a few essential reasons why you cannot ignore the prospects of investing in property. They are – 

  • Safety & Security: A own house not only provides you physical safety but also gifts you emotional security & financial stability
  • Respect & Freedom: A own house elevates your social status and gives you the freedom to live life on your terms without the landlord’s restrictions
  • Solid Investment: It is said that the best thing to own on earth is a piece of it. You get a property that appreciates in value, and you build a solid asset to bank upon in the hour of need.
  • Saving on Rentals: As you repay a house loan, you progressively increase the proportion of home ownership. But the escalating rental expense is a sunk cost with no future benefits.
  • Tax Benefits: When you buy a house, you are entitled to various tax benefits extended by the government under section 80C and section 24 of the Income Tax Act. These benefits can significantly reduce your cost.

Different Types of Home Loans

Most people believe that a housing loan is given just to purchase a new house. But this is not true. There are a wide variety of reasons for availing of a home loan. Banks & financial institutions go to the extent of customizing the loan to suit the specific requirements of individual borrowers.

You can choose to apply for a home loan depending upon your needs & objectives. The broad list is given below:

1) Regular Home Loan: This is the most common and the most popular one in the home loans category. When you want to purchase an apartment, an independent building, a villa or any constructed residential property, you can avail of a regular housing loan. 

The interest rate on regular home loans can be either fixed or floating. The loan generally covers up to 85% of the property’s value, i.e. you have to manage the funds for the down payment from other sources.

2) Construction Loan: Many people do not like to buy an already constructed property but would like to build it from scratch as per their tastes. They can get this type of home loan if they own the land on which they intend to construct the house. Construction loans can be released in a lump sum or phases depending on the construction progress.

3) Land Purchase Loan: You can avail of this loan if you want to buy a plot of land first. You can then decide to get a separate loan for construction at a later stage. You can also sell the land if it appreciates in due course of time and make a neat profit.

4) Composite Home Loan: As the name suggests, it’s a combination of loan for buying land and constructing a house on it. It covers both the cost of land and the cost of construction. Please note that the construction of the house should be completed within a specified time frame. Go for a composite loan only if you plan to start constructing a house soon. 

Generally, land & composite loans carry a higher interest rate than a regular home loan which is one of the best home loan products available.

5) Home Renovation Loan: As time passes, the property starts ageing, children grow up, and your tastes & lifestyle can change significantly too. So you may have to undertake major repairs, spruce up the interiors and give a modern design to your old house. Now a home renovation loan comes in handy and helps you change the home according to the changing needs.

6) Home Extension Loan: As the family gets bigger, you may feel that the current house is small & inadequate to cater to your requirements. To construct additional rooms or floor(s) to the existing structure, you can avail a home extension loan to create more space for your family’s comforts.

7) Home Conversion Loan: After getting a home loan to buy your dream home, you may decide to apply for a housing loan on different terms from the same lender. This conversion becomes necessary due to various reasons like:

  • Shifting from floating to a fixed rate regime or vice versa
  • Choosing a home loan product with more favourable terms
  • Reducing the EMI by enhancing the loan tenure
  • Selling the existing home and buying a new one

You can convert the home loan by paying the requisite conversion fees to the same lending institution. You need not take the trouble of shifting to another lender.


A home is associated with a lot of memories, and it conjures deep emotions in most people. It is also one of the biggest financial decisions of your life. A home loan makes it all possible even if you lack the resources now. With adequate patience and enough research, you can land the cheapest home loan available in the market. Buying a home, building it, revamping it, expanding it or owning a piece of land is possible with utmost ease and convenience today!

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