Home Loan for Under Construction Properties

1. Lower EMIs: Under-construction home loans are sometimes disbursed in installments according to the requirements of the stage of construction, with interest being charged only on the amount that is disbursed, leading to lower EMIs
2. Flexible repayment tenures: While this can vary from bank to bank, repayment tenures can go up to 30 years depending on the age of the borrower at the time of availing the loan
3. Attractive interest rates: You can get attractive interest rates on home loans that can be even more affordable if you have a good credit score
4. Interest payments: Until you get possession of your house, you only have to pay the interest component of your housing loan, which is termed the PPI-Prior Period Interest.
5. Tax Benefits: Tax benefits on a home loan for under construction properties can be availed for up to Rs.2 lakh for the interest component and up to Rs.1.5 lakh of the principal component of the home loan after receipt of the Occupancy Certificate from the builder.

Best Home Loans for Properties under Construction

• Bank of Baroda Home LoanBank of Baroda home loan schemes for construction of a house can be availed for up to Rs.1 crore in rural and semi-urban areas and up to Rs.10 crore in metros. The highlights of the scheme are:Explore: Bank of Baroda Home Loan
  • Reimbursement of the cost of plot of land (if purchased within 2 years)
  • Maximum tenure of up to 30 years with moratorium period of up to 3 years after disbursal of loan
  • Top-up loan can be availed for up to 5 times during the loan tenure
• SBI Regular Home LoanState Bank of India's Regular Home Loan can be used to purchase property under construction. It is widely available across India and has transparent processes. The highlights of the scheme are:Explore: SBI home Loan
  • Low interest rates
  • Special concession on interest for women borrowers
  • Repayment tenure of up to 30 years
• Punjab National Bank Housing Loan for PublicPunjab National Bank Housing Loan for Public can be used to purchase houses or flats that are under construction by approved builders and developers. The highlights of the housing loan are:Explore: PNB Housing Finance
  • Quantum of loan of up to Rs.50 lakh
  • Maximum tenure of up to 30 years
  • Attractive interest rates and low processing fees
• Canara Bank Housing LoanCanara Bank Housing Loan is convenient both for purchasing an under-construction property and to take over an existing loan from other financial institutions. The highlights of this home loan are as follows:Explore: Canarabank Home Loan
  • Repayment tenure of up to 30 years or borrower attaining 75 years of age
  • Loan amount of up to 4 times the gross annual salary or gross annual income
  • Attractive rates of interest with interest rate concessions for women based on credit risk premium
• LIC Housing Finance Pay When You Stay Housing Loan SchemeLIC Housing Finance Pay When You Stay loan scheme offers a special feature where repayment of the principal amount of the loan starts only when you have possession of the property. Other highlights of the scheme are:Explore: LIC Home Loan
  • Maximum loan amount of up to Rs.2 crore with loan beyond this also offered under a separate loan account
  • Repayment tenure of up to 30 years
  • Pradhan Mantri Awas Yojana Credit Linked Subsidy Scheme can also be availed under this by eligible individuals

Verdict

The home loans for under-construction properties offered by banks and other financial institutions make it possible to construct your dream home the way you wish. The affordable interest rates and long repayment tenures help to make it easier and more convenient than ever to own your own home.

Check for Home Construction Loan

Discover More

1. Home Loan For Short Term Requirements
2. Home Loan For Women
3. Home Loans For Bank Employees
4. Home Loan For Long Term Requirements
5. Home Loan For Chartered Accountants
6. Home Loan For Private Employees
7. Home Loan For Existing Customers
8. Home Loan For Doctors

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