A "low interest" loan shouldn't mean you have very little interest in paying it back!
  • 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.

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    Home Construction Loans Reviews

    • IndusInd Bank
      "Not good loan"
      0.5 3.0/5 "Satisfactory"
      I have taken INDUSIND home loan because my friend suggested it to me.The tenure of the loan is for 17 years with an interest rate of 11.5%. For submission of documents i have to run up and down apart from that it was fine.But it would have been good if the procedure is little short and not to deduct any installment from account without clearing the check first.
      Was this review helpful? 221
      , ahmedabad
      Reviewed on Mar 20, 2020
    • LIC Housing
      LIC Housing
      "Best housing loan "
      0.5 5.0/5 "Blown Away!"
      Before 4 years ago, purchased my home loan from LIC Housing finance. Due to the low interest rates, i have selected LIC Housing. Taken the loan amount of Rs. 14 lakhs and i am paying the EMI amount of Rs. 12940 per month. Total duration of the loan is 15 years.
      Was this review helpful? 325
      , tirupur
      Reviewed on Mar 20, 2020
    • Tamilnad Mercantile Bank
      "Average Service"
      0.5 2.0/5 "Expected more"
      I have taken home loan directly through Tamilnad Mercantile Bank.The rate of interest and the processing fee was high .This loan was sanctioned on time and i have uploaded the documents through online . The service was average according to my concern.
      Was this review helpful? 184
      , surat
      Reviewed on Mar 15, 2020
    • Syndicate Bank
      "Easy loan approval"
      0.5 5.0/5 "Blown Away!"
      I have taken home loan directly through SYNDICATE BANK. The rate of interest and the processing fee was nominal.This loan was processed on faster basis without any hassles.They gave a clear picture about the loan process .There was proper notification from bank end and i am satisfied with the service .
      Was this review helpful? 180
      , bangalore
      Reviewed on Mar 14, 2020
    • review
      "Supporting finance"
      0.5 5.0/5 "Blown Away!"
      Long back ago, i have taken the home loan from GIC Housing finance. Its because of the immediate process, i have selected this bank. Interest rates were normal because it was 8.35%. I bought the loan amount of Rs. 2.5 lakhs and the documentation process was hassle free. I have chosen a duration of 10 years to close this loan. I have already close the loan 5 years before and they have given me a NOC letter also.
      Was this review helpful? 175
      , chennai
      Reviewed on Mar 13, 2020
    • SBI
      "Easy loan approval"
      0.5 4.0/5 "Great!"
      I have taken home loan directly through SBI .The rate of interest was nominal and this loan is still active .Everything was good to me when availed this loan .The loan process was clearly shared by the agent .I am really satisfied with the service . Without any hassles got this loan.
      Was this review helpful? 264
      , indore
      Reviewed on Mar 13, 2020
    • Indiabulls
      "Need to improve customer service "
      0.5 2.0/5 "Expected more"
      At an Initial I took home loan from DHFL on sudden from their end transferred the process to INDIA BULLS without any intimation. But one issue was faced that my documents not submitted to INDIA BULLS hence I have submitted again. The amount sufficient was fine. EMI need to pay of 36K. The rate of interest is started with 8.35% gradually increased hence on last months was 8.90%. Their service is not good coordination with me.
      Was this review helpful? 187
      , thane
      Reviewed on Mar 12, 2020
    • review
      "Home loan closer conditions"
      0.5 1.0/5 "Really Bad"
      Hi All, If any of the builder suggest to go for this bank don't ever go for it... For every 6 months they increase the ROI even RBI is decreasing... Pre closer is a hell for me ...bi have provided a cheque after 15 days they started processing the request to close... From my pocket I paid 30000 rs extra for closing...
      Was this review helpful? 222
      , bangalore
      Reviewed on Mar 11, 2020
    • Indiabulls
      "Good service"
      0.5 4.0/5 "Great!"
      I took home loan from INDIA BULLS, some people suggested to take a loan from this bank so chosen it. They have sanctioned the loan amount of 15L with tenure period of 15 years. Rate of interest is nominal. EMI need to pay of 17K. The processing fee is applicable. Since I am going to buy a plot so taken this loan offer.
      Was this review helpful? 152
      , hyderabad
      Reviewed on Mar 11, 2020
    • LIC Housing
      "Very good home loan and need to improve the interest rate"
      0.5 5.0/5 "Blown Away!"
      My home loan was taken from LIC Housing because their processing time and charges are less but interest rate is little bit high when i compared to other Government banks. They have taken 1 week to sanctioned the loan. Documentation process is as usual like other banks. They have provided me a interest rate of 8.45%.
      Was this review helpful? 190
      , kolkata
      Reviewed on Mar 10, 2020
    • Union Bank of India
      "Average Service"
      0.5 3.0/5 "Satisfactory"
      I have taken home loan directly through Union Bank Of India .The rate of interest and the processing fee was nominal and submitted documents through the agent ,This loan is still active and i have taken this loan for home construction. There are more hidden charges which was informed later this was the only issue. I have been informed that will receive Rs.7000 to 8000 due to good credit score but it was not happened.
      Was this review helpful? 166
      , chennai
      Reviewed on Mar 09, 2020
    • HDFC Limited
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      HDFC people guided to take Pradhan Mantri scheme for the home loan. The amount was sanctioned of 25L and subsidiary amount of 2.67L. The tenure period of 20 years. An interest rate was fine of 8.5%. Pre closure is applicable with nominal charge. The process was good hence they have sanctioned the loan within 20 days. EMI need to pay of 22413 rupees.
      Was this review helpful? 238
      , kanchipuram
      Reviewed on Mar 09, 2020
    • LIC Housing
      "Need to decrease the interest rate"
      0.5 4.0/5 "Great!"
      From LIC, they offered a home loan and the loan amount was Rs. 27,00,000. The rate of interest was high 9.15% with the duration period of 20 years and i am paying EMI of Rs.24,000 and they given this loan very faster . LIC have a good customer service.
      Was this review helpful? 160
      , lucknow
      Reviewed on Mar 09, 2020
    • HDFC Limited
      "Comfortable process "
      0.5 5.0/5 "Blown Away!"
      I got home loan offer from HDFC Limited on one year back. I applied via online, the amount was sufficient with tenure period of 15 years. The rate of interest is moderate. I took this loan to buy an apartment. EMI need to pay of 36K. Pre closure is applicable but there is locking period of 6 months. Their service is good.
      Was this review helpful? 157
      , alleppey
      Reviewed on Mar 07, 2020
    • HDFC Limited
      "Best Service"
      0.5 4.0/5 "Great!"
      I have taken home loan directly through Hdfc Ltd.The rate of interest and the processing fee was nominal.This loan was processed on faster basis without any hassles.The agent gave a clear picture about the loan process .There was proper notification from bank end and i am satisfied with the service .
      Was this review helpful? 153
      , chennai
      Reviewed on Mar 06, 2020
    • review
      "Good service"
      0.5 3.0/5 "Satisfactory"
      I took home loan from MAGMA HOUSING FINANCE on 6 months back , the loan duration of 20 years for the amount of 18L. The amount was sanctioned by one month. To buy the flat taken this loan. EMI need to pay of 15,600 rupees. There is pre closure is applicable. The customer service is good.
      Was this review helpful? 128
      , vadodara
      Reviewed on Mar 06, 2020
    • review
      "Average Loan Service"
      0.5 3.0/5 "Satisfactory"
      I bought my home loan from Fullerton but an interest rates are high. In the call centre, there is no proper response for any kind of inquiry and if I sent a mail only they will send the reply after 48 hours. They have sanctioned the loan amount of Rs. 10L and they have not provided the loan as per their committed time.
      Was this review helpful? 124
      , chennai
      Reviewed on Mar 06, 2020
    • HDFC Limited
      "Good Loan Service"
      0.5 5.0/5 "Blown Away!"
      In HDFC, they were forcing me to taking a home insurance when i availed my home loan. Its just because of my landlord person since he was having their existing loan with HDFC hence have continued the same. They have offered me an interest rate of 9.25% and i need to pay the EMI amount of Rs. 10000 for the loan amount of Rs. 10 lakhs.
      Was this review helpful? 171
      , rajkot
      Reviewed on Mar 05, 2020
    • Axis Bank
      "Good Loan Service"
      0.5 5.0/5 "Blown Away!"
      I purchased a home loan from Axis bank in the year of 2011 Just because of my salary account is with them. I have taken the loan amount of Rs. 7.5L and I have chosen the tenure period of 20 years. To sanctioned this loan almost they took 10 to 15 days. Since I'm a salary account holder, the documentation process was quite high. I pay EMI amount of Rs. 7000 on a monthly.
      Was this review helpful? 75
      , rajkot
      Reviewed on Mar 05, 2020
    • YES Bank
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I have taken yes bank home loan directly through bank. The rate of interest and processing fee was nominal and the loan got sanctioned on proper time .This loan is still active and documents submitted through agent and the loan process was clearly shared by the agent .
      Was this review helpful? 58
      , rajkot
      Reviewed on Mar 04, 2020
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