Home Construction Loans

Banks/financial institutions offer affordable loans at attractive interest rates to assist you in constructing a house/residential property with simple documentation and flexible repayment schemes.

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Home Construction Loan Interest Rates

Interest rate	Requirement	Best for
State Bank of India	6.95% p.a.	Low Interest Rates
HDFC Bank	7.35% p.a.	Long-term Requirements
DHFL	9.50% p.a.	Easy Mode of Repayment
Canara Bank	6.90% p.a.	Low Processing Fees
PNB Housing Finance	9.25% p.a.	Non-Resident Indians (NRIs)
Aditya BirlaHousing 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

Best Loans for Home Construction

1. SBI Regular Home Loan

Interest rate concession for women applicants
Zero charges on prepayment
Extended loan repayment tenures
Starts at 6.95% p.a.
Up to 30 years
Rs.662 per lakh
0.35% of the loan amount (Min. Rs.2,000; Max. Rs.10,000)

2. HDFC Home Construction Loan

Can be availed by individuals looking to construct a house on a residential plot/or a Development Authority allotted plot
Longer loan tenures
Competitive interest rates
Interest rate: starts at 7.35% p.a.
tenure: Up to 30 years
Lowest EMI: Rs.689 per lakh
For Salaried: Up to 0.50% of the loan amount or Rs.3,000
For Self-employed: Up to Rs.1.50% of the loan amount or Rs.4,500

4. DHFL Home Construction Loan

Suitable for those looking to construct a house on an already owned plot/property.
Lowest Interest rate starts at 9.50% p.a.
Up to 30 years
Rs.841 per lakh
Up to Rs.20,000 + document charges

5. Canara Bank Home Construction Loan

Individuals above the age of 60 years also eligible for the loan
Available for both salaried and self-employed borrowers
Zero prepayment housing loans floating rate charges
Interest Rate: Starts at 6.90% p.a.
Tenure: Up to 30 years
Lowest EMI: Rs.659 per lakh
Up to 0.50% of the loan amount (Min. Rs.1,500; Max. Rs.10,000)

6. PNB Home Construction Loan

Extended loan tenures for a comfortable repayment period
Simple documentation and quick processing
Nominal processing fee
Interest Rate: Starts at 9.25% p.a.
Tenure: Up to 15 years
Lowest EMI: Rs.823 per lakh
Processing Fee: 2% of the loan amount

7. AdityaBirlaHousing FinancePlot & Home Construction Loan

Up to 70 years maximum age at loan maturity for self-employed individuals
Up to 90% of property value provided as a loan
Can be used to purchase a residential plot as well for the home construction
Interest Rates: 9.05% p.a
Loan Tenure: Up to 30 years
Lowest EMI: Rs. 808 per Lakh
Processing Fees: Up to 1% of the loan amount

8. Bankof BarodaHome Construction Loan

Avail top-up loansup to 5 times during loan tenure
Up to 90% of property value provided as a loan
Can be used to purchase a residential plot as well for the home construction
Interest Rates: 6.85% p.a.
Loan Tenure: Up to 30 years
Lowest EMI: Rs. 655 per Lakh
Processing Fees: Up to 0.50% of the loan amount

9. FederalHousingLoan

Loan to value of up to 85% of the property cost
Loan amount of up to Rs.1500 lakh
Interest Rates: 8.15% p.a.
Loan Tenure: Up to 30 years
Lowest EMI: Rs. 744 per Lakh
Processing Fees:Up to 0.50% of the loan amount

Eligibility Criteria for Salaried

Eligibility Criteria	Requirement
Age	Minimum Age: 18 years Maximum Age: 65 years
Resident Type	The applicant must be (any one): Resident Indian Non-Resident Indian (NRI)
Employment	The applicant must be salaried and be working under the current employer for at least 1 year
Residence	The applicant must have (any one): A permanent residence Or a rented residence where he/she has resided for at least 1 year before applying for loan
Credit score	A good credit report with a score of at least 750 or more obtained from a recognised credit bureau

Eligibility Criteria for Self-Employed

Eligibility Criteria	Requirement
Age	Minimum Age: 18 years Maximum Age: 65 years
Resident Type	The applicant must be (any one): Resident Indian Non-Resident Indian (NRI)
Employment	The applicant must be (any one): Self-Employed Professional (SEP) Self-Employed Non-Professional (SENP)
Residence	The applicant must have (any one): A permanent residence Or a rented residence where the individual has resided for at least 12 months before applying for loan
Credit score	A good credit report with a score of at least 750 or more obtained from a recognised credit bureau

Documents Required for Salaried

Proof of Identity (any one)	Aadhaar Card Valid Passport Voter ID Card Valid Driving License PAN Card
Proof of Residence (any one)	Valid Passport Voter ID Card Aadhar Card Employer ID Card Utility Bills
Proof of Income	Income Tax Returns and latest Form 16 Salary account statements showing salary credits for the last 6 months Salary slips or certificated for the last 3 months
Property Related Documents	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	Own Contribution Proof Appointment letter/employment contract If the current employment period is less than 12 months Bank account statements indicating repayments made towards other ongoing loans if any Processing fee cheque in favour of the lending institution Duly filled loan application form affixed with passport size photographs of all the applicants/co-applicants.

Documents Required for Self-Employed

Proof of Identity (any one)	Voter ID Card Valid Driving License PAN Card Valid Passport Aadhaar Card
Proof of Residence (any one)	Aadhar Card Utility Bills Valid Passport Voter ID Card Employer ID Card
Proof of Income	Income Tax Returns coupled with the computation of income of both the applicant and the business entity (attested by a certified CA) for the last 3 assessment years Balance Sheet and P & L account statements with Annexures/Schedules of both the business entity and the applicant (attest by a certified CA) the last 3 years Savings account statements of the applicant and the current account statements of the business entity for the last 6 months
Property Related Documents	Title Deeds of the Plot Estimate for construction assessed by a Civil Engineer/ an Architect Encumbrance Certificate Photocopy of the plan sanctioned by Local Authorities
Other Documents	Own Contribution Proof Latest Form 26 AS Business Profile Memorandum and Articles of Association of the Company Partnership deeds if the business entity is established as a partnership firm List of Shareholders and Directors with their respective shareholdings if the business entity is established as a company (certified by a CA) Bank account statements of both the individual and the business entity indicating details of ongoing loans if any Processing fee cheque favouring the bank/financial institution Duly filled application form affixed with passport size photographs of all the applicants/co-applicants and signed across.

Home Loans by Banks

Home Loans by NBFC

Home Loan Articles

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