Home Purchase Loan is the most common type of home loan availed usually to buy ready-to-move-in properties, under-construction properties and pre-owned homes/resale properties. As per RBI guidelines, lenders can offer loan-to-value ratio of up to 75-90% of the property value.
Composite Loan is a perfect financing solution for individuals who want to buy a plot of land either for investment or for building a house. In this type of home loan, the first disbursement is made towards the purchase of plot. The subsequent payments depend on the stages of construction of the house.
Home Construction Loan is available for individuals who want funds for the construction of a house. The loan is granted only if you own a plot of land and plan to construct a house on it. Just as in composite loan, here too the disbursement depends on the stages of construction of the house.