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Your dream house may be within your reach now even though you do not have sufficient funds in your bank account to buy a house. This is only possible by an affordable home loan that can be availed easily by any bank or housing finance company. Home loans are loans that are given to a person who wants to construct a house or purchase a home.

There are many categories under a home loan segment that can be chosen by a borrower according to his need. In India the kinds of home loans consists of some like home purchase loan, home construction loan, home extension loan, home improvement loan, etc.

• Home Purchase Loans: These are loans that are extended by bank or finance company to purchase a ready-to-use home.

• Home Construction Loan: Loans that are specially provided to consumers who want to construct a house.

• Land Purchase Loans: This kind of loan is provided by the bank to purchase a land irrespective of the land use by the borrower.

• Home Improvement Loan: If you want to avail a loan for repair and renovation of your existing home then you can rely down on this category of home loan.

• Home Extension Loan: Loans provided by the banks for extending or expanding the existing house.

• Bridge Loans: Bridge loans are designed for people who want to sell their existing home and buy a new one. People can avail this kind of loan to finance the new home.

• Home Conversion Loan: If in case a person who has taken a home loan decides to shift to another house for which he requires some extra money then home conversion loan can be availed. In this category, banks covert existing loan to new home loan by including the extra amount.

• Refinance Loans: Sometimes we ask our friends and relatives to fund our home purchases, so this kind of a home loan can be availed if we fail to clear the dues on time.

• Balance Transfer Loans: If we have an unpaid home loan then we can avail a balance transfer loan to repay the existing loan. This kind of loan is generally given at a lower interest rate by the bank.

• Stamp Duty Loans: Stamp duty is necessary while purchasing a home and therefore one can get this loan to pay for the stamp duty at time of a purchase.

All these categories loans are provided by the bank at both fixed and floating interest rates. If you want to avail the loan at a fixed interest rate then you are charged a fixed rate throughout the loan tenure. This is beneficial if interest rate in the market is rising but just in case the market interest rate lowers after you take a loan at a fixed rate then you are at a loss.

On the other hand one can also opt for a floating rate loan where the interest rate differs in loan tenure. The rate charged changes according to the alterations in the market interest rate. The floating rate loan may provide a facility of low interest rate as compared to the fixed rate but market interest rate can increases any time and then the borrower end up paying a much higher interest rate than the fixed rate of these loans.

The repayment of all home loans in india is done through Equated Monthly Installment (EMI) that differs depending on the loan tenure and the amount borrowed. Given the loan amount, if loan tenure is more the EMI is small and vice-versa. However the EMI can also differ if the interest charged changes. EMI will increase if the interest rate rises and decrease if the interest rate falls.

Therefore if you wish to stay in your own home, you can opt for any of the above categories and fulfill your dream. One can also apply for home loan online. This helps you in saving time to walk to the lender, do the huge formalities and complete the long paper works. You can always search on the different deals that can be offered to you by sitting in front of a computer and choose for the best. An online option to avail a home loan can help to avoid all the hassle, yet get the best deal.