Home Construction Loan

Build your home with the help of a home construction loan of up to ₹15 Crores available on Bajaj Markets.

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Salaried Employee

Business Owner

✓ Home Loan from ₹2 Lakhs to ₹15 Crores ✓ Interest Rates Starting @ 7.99% Check Offer

What is a Home Construction Loan

A home construction loan allows you to borrow funds to build a house on your own plot. It helps you finance the entire construction process. Lenders provide these loans with fast processing, easy approvals, and quick disbursal.

To ensure the entire process remains simple and convenient, you can complete all steps online.

On Bajaj Markets, you can get a home construction loan of up to ₹15 Crores at interest rates starting from just 8.50% p.a. The loan’s repayment is quite flexible, with a tenure of up to 30 years to choose from.

Home Construction Loan Interest Rates

You can get a home construction loan from the following lenders on Bajaj Markets at low interest rates:

Lenders	Starting Interest Rate
PNB Housing Finance	8.50% p.a.
L&T Finance	8.60% p.a.
Home First Finance Company	9% p.a.
Kotak Mahindra Bank	9% p.a.
Shubham Housing Finance	9.90% p.a.
LIC Housing Finance	8.65% p.a.
Bajaj Housing Finance Limited	7.99% p.a.

Disclaimer: The mentioned rates are subject to change at the lender’s discretion

Features and Benefits of a Home Construction Loan

Any borrower who wants to build a house on his plot or an additional floor on his property can benefit from a home construction loan.

Long tenure

The home construction loan is available for extended periods of time, ranging from 15 to 30 years, implying that the burden of EMIs can be lowered.

Tax benefits

With construction loans, you are eligible for a tax deduction on the principal and interest paid under Sections 80C and 24B. These sections allow for a tax benefit of up to ₹2 Lakhs on interest and ₹1. Read More5 Lakhs on principal, respectively. Sec 80 EE allows first-time buyers to claim an extra tax deduction of up to ₹50,000. Read Less

Balance transfer service

Most financial institutions offer housing loan balance transfer options for house construction loans, just as they do for home loans. For instance, if your current loan interest rate is higher than the market rate, you can transfer the outstanding balance to another lender.

You only need to pay a nominal processing fee.

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Loan Amount

The sanctioned amount of a home construction loan is determined by lenders after taking your income and repayment capabilities into consideration. Construction loans of up to 90% of the property's valu Read Moree are available. Having a co-applicant can improve your chances of getting a higher loan amount. Read Less

Is a Home Construction Loan Different from a Regular Home Loan

Yes, a home construction loan is different from your regular home loan in many ways. The differences are as follows:

Parameters	Home Construction Loans	Regular Home Loans
Interest Rates	Home construction loan interest rates are higher compared to regular home loans	Housing Loan interest rates are lower in comparison to home construction loans
Repayment Tenure	Tenure is shorter in comparison to regular home loans.	Tenure is longer in comparison to home construction loans. It can be up to 40 years.
Disbursal Pattern	Money is disbursed in a phase-wise manner based on the stage of construction the house is in.	The entirety of the regular home loan amount is given to the borrower as a lump sum.
Documents Required	Requires more documentation in comparison to regular home loans. You primarily need to submit a detailed project plan.	Requires lesser documentation in comparison to home construction loans.You need to submit property-related documents.

Home Construction Loan - Eligibility Criteria

The home construction loan eligibility criteria you must satisfy as a salaried or a self-employed professional are as follows:

Eligibility Criteria	Salaried Professional	Self Employed Professional/Non-Professional
Age	23-67 years of age	23-70 years of age
Citizenship Type	Resident Indian or a Non-Resident Indian (NRI)	Resident Indian or a Non-Resident Indian (NRI)
Work Experience	You must have worked with your current employer for at least 3 years	You must be a self-employed professional or non-professional with a business experience of at least 5 years
Residence Type	You must have a permanent residence or must be living in a rented house for at least 1 year	Same as a salaried professional
Credit Score Criteria	725 or more	725 or more

Disclaimer: Please check with the lender before applying.

Documents Required for Home Construction Loan

If you are a salaried/self-employed applicant who is applying for a home construction loan, you will need the following documents:

Documents for Salaried Employees

Proof of Identity: Aadhaar Card and a valid passport
Proof of Residence: Valid passport and a Voter ID card
Proof of Income: Income Tax Returns and latest Form 16
Property Related Documents: Encumbrance Certificate and the title deeds of the plot

Documents for Self-Employed

Proof of Identity: Voter ID card and a valid driving licence
Proof of Residence: Aadhaar card and utility bills
Proof of Income: Income Tax Returns, as well as the applicant's and business entity's income computations for the previous three assessment years
Property Related Documents: Title deeds of the plot and estimate for construction assessed by a civil engineer

How to Apply for a Home Construction Loan

To apply for a home construction loan on Bajaj Markets, follow these simple steps:

Click on ‘CHECK OFFER’ on this page.
Provide your personal and income-related information.
Choose your preferred lender from the list provided.
Enter the loan amount and tenure
Cross-check the details entered and submit the application.
Following this, a representative will reach out to you for further proceedings.

Fees and Charges for a Home Construction Loan

Home construction loans typically involve various fees and charges, including:

Processing Fee

This fee covers the lender's administrative costs for processing the loan application and usually ranges from 0.5% to 2% of the loan amount.

Legal and Valuation Fees

Lenders conduct legal and technical assessments of the property. These fees cover the costs related to verifying legal documents and assessing the property's value.

Documentation Charges

These charges apply to the verification of the borrower's documents, such as proof of income, identity, and address.

Stamp Duty and Registration Fees

These statutory charges are mandatory for property registration and vary depending on the state and the value of the property, often expressed in Lakhs or Crores.

Prepayment and Foreclosure Charges

Lenders may impose charges for early repayment or foreclosure, particularly when the loan carries a fixed interest rate.

Home Loan Quick Links

Home Loan by Banks & HFCs

Home Loan by Amounts & Salary

How much loan can I get for home construction?

You can get a home construction loan of up to 90% of the aggregate building costs. However, the amount sanctioned to you depends on your eligibility and is at the discretion of the lender.

What is required for a home construction loan?

You'll need a solid credit score, a low debt-to-income ratio, and proof of sufficient income to qualify for a construction loan. When you apply for the loan, you must also make a down payment.

How is a home construction loan disbursed in phases?

The loan disbursal of a home construction loan is done in phases/ parts. The lender releases the money in line with the progress of construction.

How long does it take to get a home construction loan sanctioned?

While loan disbursal is often subject to various factors and conditions, most lenders initiate the disbursal within 4 to 10 of verification of the applicant’s information and documents.

What are the current construction loan interest rates?

Individuals can get a home construction loan for interest rates starting from 7.99% p.a. on Bajaj Markets. However, these rates are subject to change.

What is the tenure of a home construction loan?

You can get a repayment term of about 15-30 years on applying for a home construction loan. The tenure is likely to differ from one lender to another.

Is a construction loan the same as a home loan?

A home construction loan is a type of home loan that allows you to build your own house on a plot. You can also build a new floor on your existing property with the help of this loan.

It differs from a regular home loan, which allows you to buy an already-constructed apartment or one that will be constructed later in the future.

Can I get a loan for the construction of a house?

Yes, multiple lenders on Bajaj Markets offer loans specifically for constructing your house. You need to meet the eligibility criteria and provide the required documents to proceed with the application.

Which bank is best for a home construction loan?

The preference depends on your repayment capacity and requirements. You can compare all lenders offering home construction loans on Bajaj Markets. Choose one after reviewing the terms and conditions.

What type of loan is best for construction?

A home construction loan is the most suitable loan type for building a house. It is specifically designed to fund the construction of a residential property.

What is the EMI for home construction?

The exact amount depends on your interest rate and tenure. You can easily calculate it using the free home loan EMI Calculator on Bajaj Markets.

What is the maximum construction loan amount?

On Bajaj Markets, you can secure a loan of up to ₹15 Crores for renovating or constructing your house. The sanctioned amount depends on your eligibility, income, and property valuation.