Home Loan or Housing Loan as the name suggests is an amount taken from a bank or a financial institution for building or buying a home. The amount is taken at a certain rate of interest for a certain period of time. The time period may vary from 10-30 years. The amount is paid back by the borrower to the bank or the financial institution through monthly installments also called EMIs (equated monthly installments).

At Mantra, we understand how it feels to have a place which you can call ‘your home: sweet home.’And therefore we bring multiple home financing options that are well suited to meet your budget and needs.

Types of Home Loans in India

There are different kinds of Home Loans that one can take depending upon one’s need and purpose.

  1. Loan to purchase home:Under the home purchase loan the amount is sanctioned to purchase an already built in house or ready to move in property. This is the most popular types of loan which helps borrowers to buy a home whether a flat or a bungalow. Home loans can be taken to buy properties that are either commercial or personal in nature
  2. Loan to construct Home: This amount is given to an individual to build or construct a home on an existing piece of land. This loan is apt for individuals who would like to construct their own house rather than purchasing a pre-constructed house.

Unlike Home Purchase loan where the amount is disbursed in bulk, under loan for construction, the amount sanctioned is generally disbursed in installments depending upon the progress of the construction. 

  • Purchase/Plot Loan:This loan is apt for individuals looking to purchase plot or land for construction of a home. Even if you do not wish to do any construction, you can simply keep the plot as an investment.
  • Loan for Home Renovation/ Extension: This loan is for those aspiring to renovate or extend their home. If you plan to add a room, or floor or any alteration to the current structure then you can definitely go for it. Also this type of loan offers similar interest rates as basic home loan.
  • Home Loan Balance Transfer/Top Up: Balance transfer is done by customers already having a home loan. A customer during his loan tenure may opt to transfer his remaining balance amount from one bank to another. There can be varying reasons for it. For instance, a customer may switch his lender for lower interest rates or simply because he is being offered better services. Top Up is an additional amount given to a borrower above and over an existing home loan with minimal new documentation.
  • Pradhan Mantri Awas Yojana:Under Pradhan Mantri AwasYojana,  the government offers “Credit Linked Subsidy Scheme (CLSS)”for the economically weaker section, Lower Income Group, Middle Income Group with a vision of providing homes to all citizens. Almost all banks offer loan in coalition with this scheme.


  • Purpose: So if you want to purchase a home or construct your home, extend or improve your home or simply purchase a plot; a home loan will help you achieve any of these goals.
  • Interest Rate: Home loans come with interest rates that are lowest amongst all other types of loan.
  • Tenure: Home loans have a longer repayment tenure that typically ranges from 15-20 years. This makes buying home loans affordable for all as longer tenure makes EMI smaller and affordable.
  • Higher Loan Amount: In home loans you can get higher loan amount in comparison to other types of loans i.e. 85%-90%.
  • Income Tax Benefit: This is one of the best feature and advantage of Home loans i.e. you can get tax benefits on both the principal and interest you will be paying towards your EMI as per the Income tax act of 1961.