Home Construction Loans are a type of home loan in which you can avail a loan to construct your own house instead of buying one. The lender provides the loan amount in stages as the work progresses. If you want to apply for a home construction loan, then you’ll be required to give a realistic budget for construction, construction plan & detailed construction timetable to the lender.
Once you get the home construction loan approval, the lender will disburse the loan amount in stages based on each construction stage’s demand. The lender might ask a 3
rd
party technician to inspect the site during the construction work.
Eligibility criteria for a home loan for construction of house:Residential status: Must be an Indian or NRI.
Age: 18-65 years.
Income: Minimum income of Rs. 25000 per month.
Credit score: Above 750.
Employment: salaried or self-employed individuals.
| Bank | Interest rate | Best for |
State Bank of India |
6.95% p.a. |
Low Interest Rates |
HDFC Bank |
7.35% p.a. |
Long-term Requirements |
ICICI |
7.70% p.a. |
Repayment post retirement |
DHFL |
9.50% p.a. |
Easy Mode of Repayment |
Canara Bank |
6.90% p.a. |
Low Processing Fees |
Aditya Birla Housing Finance |
9.00% p.a. |
Best for self-employed |
Bank of Baroda |
6.85% p.a. |
Maximum number of top-up loans |
Federal Bank |
8.15% p.a. |
Best Loan-to-Value |
PNB Housing Finance |
9.25% p.a. |
Non-Resident Indians (NRIs) |
Bajaj Housing Finance |
9.05% p.a. |
Higher loan value |
I hope you like my answer on home construction loans.
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Authors Of The Question
What is a construction loan for a house?
Garima
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1 Answers
3 Year
2021-09-21T17:18:15+00:00 2021-09-23T19:07:27+00:00Comment
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