Composite loan is a loan extended by banks and financial institutions for the purpose of purchasing a plot or land and constructing a house on it within a given a timeline. It’s a combination of plot loan and construction loan. In this type of loan, the cost of both land or plot and construction of the house is covered.
|Bank||Interest rate||Best for|
|HDFC||8.60% onwards||Higher Term of 15 Years|
|SBI||8.70 onwards||Rate of Interest on Daily Reducing Balance|
|DHFL||9.75%||Higher Term of 30 Years|
|PNB Housing||10.05% onwards||Higher Funding of up to 90% of the property market value|
|ICICI||8.80% onwards||Large Branch Network|
Salaried & Self-Employed Professionals:
Up to Rs.30 lakh: Rs.5,000
Above Rs.30 lakh Up to Rs.75 lakh: Rs.10,000
Above Rs.75 lakh: Rs.20,000
Self-Employed Non-Professionals: Net PAT: 0.5% + taxes Others: 1.5% + taxes
Below are the eligibility criteria to avail a composite loan:
|Age||18 years – 70 years|
|CIBIL Score||Above 750||Above 750|
Below are the set of documents required to avail a composite loan:
|Proof of Identity||Voter’s ID, Driving License, Passport or PAN card|
|Proof of Address||Utility bills, Passport, Driving License|
|Proof of Income||Bank Statement of salary account for last three months and last six-month salary slips||Audited financial statement of the past two years|
Banks and lenders determine your eligibility by your income and repayment capacity. Other factors include your age, occupation, qualification, number of dependents, assets and liabilities, savings history, your spouse’s income (if any), and the stability and continuity of occupation.
Banks and lenders offer several modes of repayment of the loan. You can set up standing instructions to your banker to pay the EMI through ECS (Electronic Clearing System), choose for direct deduction of EMI by your employer or you could issue Post-Dated Cheques (PDCs) from your salary account.
Upon receiving your request, the bank or the lender will disburse the loan amount in full or in installments. In case of an under-construction property, the bank will disburse the loan in installments based on the construction progress, subject to assessment by the bank and not necessarily as per the developer’s agreement.
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