Banks offer different types of bank loans to meet their customer’s needs. The first-time home buyer can apply for a loan to purchase a house, plot, or renovate an existing structure.  To clear your confusion about loan types, we have summarized the type of home loans in India one can avail to buy an independent house for sale in Hyderabad. 

• Loans for Purchase of Land 

Many banks offer loans for land purchase which is a flexible option for many. The buyer can have the land as an investment or can construct a house when his finances are ready. Generally, the banks release up to 85% of the cost of land.  

Eligibility Criteria

Documents Needed  

• Age proof 

• Address proof 

• Income proof 

• Identification proof 

• Property related documents 

• Existing loan documents 

• Loans for an independent house for sale in Hyderabad 

This is the most common type of home loan available for purchasing an independent house for sale in Hyderabad or a pre-owned home. The interest rate is either floating or fixed and generally varies anywhere between 9.85% and 11.25%. 

Eligibility Criteria  
 

Documents Needed  

• Proof of Age 

• Proof of Address 

• Proof of Income 

• Identification proof 

• Documents of property 

• Existing loan documents (if any) 

Loans for Construction of a House 

This type of loan approval takes longer as it involves the cost of the plot too. This loan is suitable for those who want to construct a home from scratch. A crucial clause when applying for a home construction loan is that the plot must have been purchased within a year. The loan amount is decided based on a rough estimate of the construction cost.  

Eligibility Criteria 

The following are the eligibility criteria for home purchase loans: 

Documents Needed   

• Proof of Age 

• Proof of Address 

• Proof of Income 

• Identification proof 

• Property related documents 

• Existing loan documents (Optional) 

House Expansion or Extension Loans 

If you are looking to give a new look to your home, this loan is for you. Various banks offer loans for house expansion, alteration or construction of new rooms.  

Eligibility Criteria  

Documents Needed  

• Home extension or property-related documents 

• Proof of Age 

• Proof of Address 

• Proof of Income 

• Identification proof 

• Property related documents 

Some other types of loans available are: 

• Composite Home Loan 

• Plot Loan 

• Fixed interest rate home loan 

• Flexible interest rate home loan 

• Hybrid home loan 

Beginning your ‘dream home’ journey can be often overwhelming but not with us. Subscribe to 1TREC to get all the real estate updates in Hyderabad. We’ll connect you to your dream property at your desired location and favourable amenities. Subscribe now.