Home Construction
Loan

A Home Construction Loan is a financing option that provides funds for building a house from the ground up. It can be used to purchase land and construct a property or to build a home on a piece of land that you already own. The loan is disbursed in stages based on the construction progress.

A Home Construction Loan offers several advantages, including a ​​repayment tenure of up to 30 years, making EMIs more affordable. It requires minimal documentation, making the process hassle-free. You can easily track your loan status online and the loan is available as an Overdraft facility, providing flexibility in fund utilisation.  

• To qualify for a Home Construction Loan, you must be an Indian citizen with a minimum age of 21 years and maximum age of 70 years at loan maturity.

• A salaried applicant must have a minimum monthly income of ₹ 25,000. 

• The loan amount is determined based on your creditworthiness, financial profile and repayment capacity assessed by the Bank. 

A Home Loan is for purchasing an already built property while a Home Construction Loan helps you fund the construction of a property on your own land.

There is no specific limit. The loan amount is based on your eligibility, income, CIBIL score and other factors.

No, you cannot apply for a Home Construction Loan as it requires you to already own land. If you don’t own land, you may need to look for other loan options.

The maximum tenure is of up to 30 years depending on your eligibility and repayment capacity.

No, the documentation is minimal. You will need to provide proofs of income, identity and land ownership documents.

Yes, a Home Construction Loan can also be used for renovating or expanding an existing property as long as the land is owned by you.