Many banks and financial institutions offer affordable building 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.
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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||7.70% p.a. onwards|
|Age||21 to 70 years|
|Tax benefits||Up to Rs. 2 Lakhs on interest & Rs. 1.50 Lakhs on principal amount|
Following are the key features and benefits of home construction loan:
Also Check: Best Home Loan for Salaried Person before applying for a loan
Below is the table for home construction loan interest rates as well as processing fees for all leading banks:
|Bank Name||Rate of Interest||Processing Fees|
|SBI||Starting at 8.05% p.a.||0.40% of the loan amount + GST|
|ICICI Bank||Starting at 8.10% p.a.||0.50% of the loan amount + GST|
|HDFC Bank||Starting at 8.10% p.a.||0.50% of the loan amount + GST|
|Bank of Baroda||Starting at 7.95% p.a.||1% of the loan amount + GST|
|Punjab National Bank||Starting at 7.90% p.a.||0.35% of the loan amount+Applicable Tax|
|YES Bank||Starting at 8.95% p.a.||2% of the loan amount + GST|
|Canara Bank||Starting at 8.05% p.a.||0.50% of the loan amount + GST|
|Bank of India||Starting at 7.80% p.a.||0.25% of the loan amount + GST|
Additional Info: You can also check Best Home Loan Interest Rates
Following are some of the best banks for house building loan in India:
SBI Regular Home Loan
HDFC Home Construction Loan
PNB Home Construction Loan
DHFL Home Construction Loan
Canara Bank Home Construction Loan
Bank of Baroda Home Construction Loan
Aditya Birla Housing Finance Home Construction Loan
Federal Bank Home Construction Loan
Additional Info: Also Check Best Banks for Home Loan in India in 2022
Below are the detailed home construction loan eligibility criteria for salaried and self-employed applicants:
Eligibility for Salaried Applicants
Eligibility for Self-employed Applicants
Additional Info: Also check Pan Number for Banks
Following are the documents required for home construction loan application:
Additional Info: Looking for Plot Loan
*This above-mentioned documentation list may vary based on the applicant’s profile and the lender’s requirement.
Additional Info: Also check Documents Required For Home Loan
You can apply for a home construction loan online through mymoneymantra.com by simply following the steps given below:
Additional Info: Check 35 Lakh Home Loan EMI Apply Online.
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SBI Regular Home Loan, HDFC Home Construction Loan, DHFL Home Construction Loan, Canara Bank Home Construction Loan, PNB Home Construction Loan, and Bank of Baroda Home Construction Loan are some of the best loans for home construction.
Yes. As buying land and constructing a home on it can be expensive, lenders allow borrowers to get a plot and construction loan together. For this, borrowers are required to provide the details of the land they wish to purchase and details of the construction of the property to the lender.
A plot Construction Loan is a type of housing loan which can be availed of to purchase a residential plot and then construct a house on it within the stipulated time. If a borrower cannot commence construction within the decided period, the bank can increase the interest rate on loan.
No. Instead, you can get a loan against your plot and use it for other personal purposes. A home loan is provided only against the mortgage of the property to be purchased.
No. If you want to buy a plot, you can apply for a land loan or plot loan. Home loans are available only for the purchase of property that is already constructed, under construction or about to undergo construction soon. You will have to apply for a land loan to fund the purchase of a vacant plot.
Under new construction loans, you can get up to 100% of the construction value or 90% of the property value, whichever is lower.
Most of the banks and financial institutions like SBI, Axis Bank, HDFC Bank, ICICI Bank, Federal Bank, etc., offer home construction loans in India. You can either apply online through the lender’s website/ mobile app or visit the branch office of the lending institution.
SBI, HDFC Bank, and ICICI Bank are some of the best banks for construction loans.
You need a credit score for home loan of at least 750 or above to be eligible for a home construction loan. However, some banks may also offer these loans on a credit score of 650 or above.
You can get tax benefits of up to Rs. 2 Lakhs on interest and up to Rs. 1.50 Lakhs on principal amount. The tax benefits for home construction loan fall under Section 80EE of the Income Tax Act. To avail these benefits, the total value of the loan must be under Rs. 35 Lakhs and the home’s total value must be under Rs. 50 Lakhs.