Home Construction Loan
Many banks and financial institutions offer affordable home construction loan at attractive interest rate to help you with the construction of a house or residential property. The process involves easy documentation and flexible repayment tenure.
Home Construction Loan Details
House Construction Loan is availed of by those customers who own a piece of land and need financial assistance for the construction of a house thereon. These loans cover expenses of construction and come with flexible repayment tenure of up to 30 years.
| Loan amount | Up to 90% of the construction value |
|---|---|
| Tenure | Up to 30 years |
| Rate of interest | 6.50% p.a. onwards |
| Age | 21 to 70 years |
| Tax benefits | Up to Rs. 2 Lakhs on interest & Rs. 1.50 Lakhs on principal amount |
Home Construction Loan Features and Benefits
Following are the key features and benefits of home construction loan:
- Attractive interest rates starting from just 6.50% p.a.
- Long repayment tenure of up to 30 years.
- High loan-to-value (LTV) ratio of up to 100% of the construction value or 90% of the property value, whichever is lower.
- Tax benefits of up to Rs. 2 Lakhs on interest and up to Rs. 1.50 Lakhs on principal amount
- Availability of loan balance transfer facility.
- Availability of top-up loan facility.
Home Construction Loan Eligibility Criteria
Below are the detailed home construction loan eligibility criteria for salaried and self-employed applicants:
Eligibility for Salaried Applicants
- Age: The applicant should be at least 21 years old when applying for the loan and bellow 65 years of age when the loan matures.
- Residential status: The applicant can be Indian resident or Non-Resident Indian.
- Employment type: The applicant should be a salaried employee working with the current employer for at least last 1 year.
- Residence: The applicant must have a permanent or a rented residence where they have resided for at least last 1 year before applying for the loan.
- Credit score: The applicant must have a good Credit Score of 750 or more as per the recognised credit bureau.
Eligibility for Self-employed Applicants
- Age: The applicant should be at least 21 years old when applying for the loan and bellow 70 years of age when the loan matures.
- Residential status: The applicant can be Indian resident or Non-Resident Indian.
- Employment type: The applicant must be either a self-employed professional (SEP) or a self-smployed non-professional (SENP).
- Residence: The applicant must have a permanent or a rented residence where they have resided for at least last 1 year before applying for the loan.
- Credit score: The applicant must have a good credit score of 750 or more as per the recognised credit bureau.