Turn your dream home into reality with a home construction loan offering affordable interest rates and flexible repayment options. Know the key features, eligibility criteria, and required documents and apply now on Bajaj Markets.
A home construction loan allows you to borrow funds to build a house on your plot. It helps you finance the entire construction process. Many lenders provide these loans with fast processing, easy approvals, and quick disbursal.
On Bajaj Markets, you can get a home construction loan of up to ₹15 Crores at interest rates starting from just 7.45% p.a. Take advantage of flexible repayment options and extended loan tenures of up to 32 years.
It is a customised financing option that helps you fund the construction of your new home. Unlike a traditional home loan, the lender disburses the amount in phases as the construction of your home progresses
The lender releases funds in stages based on construction milestones. You submit certificates, bills, and work orders at each stage for verification.
This loan funds the construction of your home, not the land purchase. It covers the costs for labour, materials, and permits as per your approved construction estimate.
The lender finances only the structural construction. You need to manage costs for interiors, furnishings, and fixtures separately.
If you make major changes to the approved plan, the lender may pause disbursals. You can continue receiving funds by submitting the revised plan and updated costs.
You can get a Home Construction Loan from the following lenders on Bajaj Markets at low interest rates and flexible tenure:
| Lenders |
Min. Interest Rates |
Max. Loan Amount |
Max. Tenure |
|---|---|---|---|
| Bajaj Housing Finance Limited |
7.40% p.a. |
₹15 Crores |
384 months |
| PNB Housing Finance Limited |
8.5% p.a. |
₹15 Crores |
360 months |
| ICICI Bank |
9% p.a. |
₹5 Crores |
360 months |
| India Shelter |
13% p.a. |
₹40 Lakhs |
240 months |
| Vridhi Home Finance |
12% p.a. |
₹25 Lakhs |
144 months |
| Sammaan Capital |
8.75% p.a. |
₹5 Crores |
360 months |
| South Indian Bank |
9.50% p.a. |
₹50 Lakhs |
360 months |
| Easy Home Finance |
10.50% p.a. |
₹50 Lakhs |
240 months |
Disclaimer: The interest rates are subject to change at the lender’s discretion.
Home construction loans typically involve various fees and charges. The following are some of the charges:
This fee covers the lender's administrative costs for processing the loan application. It usually ranges from 0.5% to 4% of the loan amount.
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.
These charges apply to the verification of your documents, such as proof of income, identity, and address.
These statutory charges are mandatory for property registration and vary depending on the state and the value of the property. These charges are often expressed in Lakhs or Crores.
Lenders may impose charges for early repayment or foreclosure, especially for loans with a fixed interest rate.
This non-refundable fee is charged by lenders at the time of application submission. It covers the initial administrative costs of evaluating your loan application and typically ranges from ₹500 to ₹5,000.
Inspection fees are charged for conducting periodic site visits during the construction process. These visits ensure that the construction is progressing as per the approved plan and timeline. The fees vary depending on the lender and the number of inspections required.
Some lenders charge interest on the amount disbursed during the construction phase, even if the entire loan amount has not been fully disbursed. This interest is typically payable monthly, and it is calculated based on the amount of loan drawn.
These can include various minor charges like charges for duplicate documents, account maintenance, and other administrative expenses. These charges may be nominal but can add up over time, so it’s essential to clarify them with your lender.
The calculator provides an accurate EMI estimate, allowing you to plan your finances effectively and make informed borrowing decisions.
This financing option helps you build a house on your own plot or add an extra floor to your existing property.
On Bajaj Markets, lenders offer loans for a tenure of up to 32 years, enabling you to reduce the EMI burden and manage repayments efficiently.
You can conveniently access top-up loans to cover cost overruns or additional construction expenses.
The loan offers multiple repayment options, allowing you to structure EMIs according to your financial capacity.
With construction loans, you are eligible for tax deductions on the principal and interest paid under Sections 80C and 24(b).
Section 80C allows a deduction of up to ₹1.5 Lakhs on principal repayment, while Section 24(b) allows up to ₹2 Lakhs on interest paid.
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 fees.
To apply for this loan, you need to meet certain basic eligibility requirements, including:
| Eligibility Criteria |
Salaried Professional |
Self-Employed Professional/Non-Professional |
|---|---|---|
| Age |
23 to 67 years of age |
23 to 70 years of age |
| Citizenship Type |
Indian Resident |
Indian Resident |
| Work Experience |
Minimum 3 years of work experience for salaried individuals |
Minimum 5 years of business continuity |
| Residence Type |
You need to have a permanent residence or 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: Eligibility criteria are subject to change and may vary as per the lender’s terms and policies.
If you are a salaried/self-employed individual who is applying for a home construction loan, you will need the following documents:
Documents for Salaried Employees
Documents for Self-Employed
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 form for verification
Following this, a representative will reach out to you for further proceedings.
When planning to build a home, you can choose from several loan options tailored to your needs:
You use this loan to fund only the construction phase. You pay interest during construction and, after completing the project, either repay the loan in full or convert it into a regular home loan.
You use this loan to cover construction and a long-term mortgage in a single package. After you complete the construction, you automatically convert the loan into a permanent home loan.
You use this loan to buy a plot and build a house on it. The loan finances both the land and construction costs.
While both loans help you own a home, they differ in structure, disbursement, and documentation. Here are the key differences:
| Parameters |
Home Construction Loans |
Regular Home Loans |
|---|---|---|
| Loan Amount |
Amount is based on the construction estimate, your eligibility and your profile. |
Amount is based on property value, your eligibility and your profile. |
| 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 |
| Tenure |
Usually, tenure is shorter in comparison to regular home loans. |
Tenure is longer in comparison to home construction loans. It can be up to 32 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. |
| Repayment |
Interest-only payments during construction. |
Standard EMI payments start immediately after disbursal. |
| Approval Process |
Requires detailed construction plans and estimates. |
Simpler and quicker approval process. |
| Documents Required |
Requires more documentation in comparison to regular home loans. You primarily need to submit a detailed project plan. |
Requires less documentation in comparison to home construction loans. You need to submit property-related documents. |
Before you proceed with your application, it is important to thoroughly understand the key terms, eligibility criteria, and critical details. Keep the following factors in mind to make an informed decision:
Prepare a detailed and approved construction blueprint before applying. Lenders finalise loan terms based on your building plan, which you cannot change after approval.
Construction loans usually have shorter tenures than regular home loans. Use an online EMI calculator to plan your repayments accurately.
Ensure you meet conditions such as a good credit score, stable income, and sufficient work experience. Include a co-applicant if the property is co-owned.
Submit all required documents, including plot ownership papers, sale deed, approved floor plan, NOC from local authorities, and sanctioned drawings, along with KYC and income proof.
Coordinate closely with contractors to maintain the construction schedule. Lenders release funds in phases based on project progress, and any delay can pause further disbursements.
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.
The time to sanction a home construction loan varies by bank and the completeness of your documentation. Typically, banks complete the sanctioning process within 1 to 4 weeks.
No, both are different loans. 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 in the future.
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.
With lenders available on Bajaj Markets, you can secure a loan of up to ₹15 Crores for constructing your house. The sanctioned amount depends on your eligibility, income, and property valuation.
Yes. You can obtain a home construction loan to build on a plot you already own. Lenders base the loan on the estimated construction cost, property location, and your repayment capacity.
Lenders calculate the loan amount considering the estimated construction cost, your income, repayment capacity, and credit score.
Lenders release funds in stages aligned with construction progress, such as foundation, walls, flooring, and finishing. They inspect each stage before disbursing the next instalment.
Yes. You can apply jointly with a family member. Co-applicants improve eligibility and may increase the loan amount based on combined income and credit profiles.
Yes. You can prepay your home construction loan. Lenders usually allow prepayment without charges on floating-rate loans, while fixed-rate loans may carry a nominal fee.
Lenders generally expect construction to be completed within 18–24 months. Delays can affect disbursals and increase interest costs.
Choosing a suitable bank depends on factors such as interest rates, loan tenure, customer service, and disbursement flexibility. On Bajaj Markets, you can explore various home construction loan options with competitive interest rates and flexible repayment options.