There are several types of home loans available in India. The main options are:

• Fixed Rate Home Loans: Interest rate remains fixed for the entire loan tenure. EMI remains the same, providing stability. However, if market rates fall, you lose out. Best for those who prefer predictability.


• Floating Rate Home Loans: Interest rate is linked to market rates and keeps varying. EMI and tenure change with rate fluctuations. Risky as EMI can increase, but you can gain if rates fall. Opt if you can afford higher EMI or prefer lower rates.


• Hybrid/Dual Rate Home Loans: Combine fixed and floating rates. Initial years at fixed rate provide stability. Later years at floating rate allow rate benefit. Balances stability and savings. But documentation is more complex.


• Subsidized Home Loans: Offered by government agencies like PMAY. Lower interest rates and longer tenure. For middle/lower income buyers. Limited funds, so first-come, first-serve. Need to meet certain eligibility criteria.


• Pre-Approved Home Loans: Approved in advance based on your eligibility. Shorter processing time when buying property. Rate of interest may be slightly higher. Useful when immediate purchase opportunity arises.


• Pre-Sanctioned Home Loans: Sanctioned in advance based on eligibility but disbursed later based on property details. Faster disbursal. Rates similar to regular home loan. Convenient but sanction validity needs monitoring.


• Home Overdraft Facility: Gives a large overdraft limit apart from your regular account. Use as needed and pay interest only on amount withdrawn. Flexible but interest rates higher than regular home loan.


• Home Renovation Loans: Finance home renovation, repair, expansion or overhaul. Flexible terms. Rates depend on amount, tenor etc. Convenient if regular home loan not suitable or available. Need security of the property.

• Your risk appetite: If you prefer stability over possible savings or vice versa.


• Current and future liquidity: How much EMI you can afford now and potential increase in the future.


• Interest rates: Compare rates between fixed, floating and hybrid to see potential benefits. Check if subsidized loans can offer lower rates in your case.


• Loan tenor: The tenor that is most suitable based on your age, need and repayment ability. Shorter the better but at affordable EMI.


• Additional charges: Processing fees, prepayment charges, penalty clauses etc. that affect the overall cost. Aim for lower, preferably zero charges.


• Flexibility: Opt for a loan that allows part prepayments, overdrafts if needed, tenor increase/decrease flexibility etc. based on your priorities. But at a reasonable cost.


• Usage: Whether the loan is for purchase, construction, renovation, extension etc. Some loans are tailored for specific needs. Choose accordingly.


• Documentation: Compare the paperwork involved for different loans. Less documentation is better as long as it does not mean higher interest rates.