Hello Surajit. The construction loan rate of interest varies based on the financial institution you’re taking the loan from. Each bank or NBFC has a range. I took a home construction loan from LIC HFL last year at an interest rate of 8.65 percent p.a. Home construction loans can be given at a lower interest rate if you maintain a high credit score with little to no EMIs at present. The interest rate also reduces if you opt for a shorter tenure.
I’ll share the home loan interest rates of a few financial institutions below to help you out.
What are the Home Construction Loan Interest Rates?
Here are the interest rates on home construction loans offered by different banks and NBFCs.
Financial Institution |
Rate of Interest |
LIC HFL |
8.65 percent to 10.40 percent |
Tata Capital |
8.75 percent onwards |
SBI Bank |
9.40 percent to 9.85 percent |
Other financial institutions offer home construction loans. You can go to their website to check out the rates. I hope you are now aware of the construction home loan rates.
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When you mortgage property and plan to carry construction on land by availing a loan is called a construction loan. If you want to expand your house then you can also get resources by applying for construction loan. Currently, construction loans are available at the best rate of 6.50%. I will share with you home construction loan interest rates of different branches so that you can approach a bank you like for the construction of the home.
What is the interest rate on a construction loan?
| Bank | Interest rate |
State Bank of India |
6.95% p.a. |
HDFC Bank |
7.35% p.a. |
DHFL |
9.50% p.a. |
Canara Bank |
6.90% p.a. |
PNB Housing Finance |
9.25% p.a. |
Aditya Birla Housing Finance |
9.00% p.a. |
Bank of Baroda |
6.85% p.a. |
Federal Bank |
8.15% p.a. |
The minimum age to secure the construction loan is 18 years and the maximum age is 65 years.
Indian Residents or NRIs can apply for construction loan in India.
If you are an employee, you should be a salaried person and you should work under the current employer for 1 year.
A minimum of 750 CIBIL scores is required.
Documents required to secure a construction :
Identity Proof
Residential Proof
Income Proof
Documents of property such as Encumbrance Certificate, Title Deeds of the Plot, Estimate for construction assessed by a Civil Engineer/ an Architect, Photocopy of the plan sanctioned by Local Authorities.
Other documents may be required as per banks or financial institutions.
This was all about construction loan financing rates.
I hope you have an idea about home construction loan interest rates.
Get home loans at the lowest interest rate of 6% from NoBroker. Check out now!Read more:
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Authors Of The Question
What is the interest rate on a construction loan?
Surajit
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2 Answers
2 Year
2022-03-11T18:48:52+00:00 2022-03-11T18:48:54+00:00Comment
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