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Check interest rates, eligibility criteria, documents required and other key details
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Opting for a home loan for an under-construction property provides financial flexibility, with funds disbursed as construction progresses. Such properties are generally more affordable than completed ones, which makes loan repayment more manageable. The disbursement process unfolds in stages, aligning with construction milestones. Delve into the specifics of the home loan process for under-construction projects to make informed financial decisions.
Here is the list of interest rates offered by various lenders:
Lender |
Minimum Home Loan Interest Rates (p.a.) |
|---|---|
Bajaj Housing Finance Limited |
7.99% |
PNB Housing Finance Limited |
8.50% |
LIC Housing Finance |
8.65% |
ICICI Bank |
9.00% |
Kotak Mahindra Bank |
9.00% |
Home First Finance Company |
9% |
India Shelter |
13% |
Shubham Housing Finance |
10.90% |
Shriram Housing Finance |
11.50% |
Disclaimer: The interest rates are subject to change as per lender’s discretion.
As the construction proceeds in stages, the loan is disbursed gradually, and the interest is charged only on the utilised amount.
Benefit from customisable repayment periods which can extend up to 30 years depending on the lender’s terms, the borrower's age, etc.
You can get attractive interest rates for under-construction properties, which can be more affordable if your credit score is high.
Enjoy tax benefits of up to ₹2 Lakhs on the interest paid and up to ₹1.5 Lakhs on the principal component of the home loan, after receiving the Occupancy Certificate.
The following are the general requirements that a customer needs to fulfil to qualify for a home loan for under-construction projects from various lenders:
Parameter |
Details |
|---|---|
Nationality |
Resident or non-resident Indian |
Age |
For salaried individuals: 23-62 years For self-employed individuals: 25-70 years |
Work Experience |
For salaried individuals: Minimum 3 years For self-employed individuals: Minimum 5 years |
Income |
For salaried individuals: Minimum ₹1.2 Lakhs per annum For self-employed individuals: Minimum ₹2 Lakhs per annum |
Other Conditions |
A good credit score above 750, without any defaults in the history of loans and statutory payments |
*Different lenders may have varying terms, check with your chosen financial institution before applying
Here are some of the important documents that you may require when applying for a home loan for properties under construction:
Document |
Details |
|---|---|
Identity Proof |
|
Address Proof |
|
Income Proof |
For Salaried Applicants:
For Self-Employed Applicants:
|
Property Proof |
|
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Yes, you can avail a home loan on an under-construction property. You can explore different lenders on Bajaj Markets and select a home loan of your choice.
You can claim tax benefits of up to ₹2 Lakhs on the interest paid and up to ₹1.5 Lakhs on the principal component of the home loan. It can be claimed only after the receipt of the Occupancy Certificate from the builder.
The home loan amount for under-construction properties is disbursed in instalments. This is because the amount is released according to the requirements of the stage of construction and the interest will be charged only on this amount.
You have to pay home loan EMIs from the start of construction of the property. The interest amount will be calculated based on the amount disbursed to the builder while the remaining amount will be counted towards the principal.
Yes, you can pay full EMI for under-construction property. However, it is dependent on the lender to decide whether you should be given the option for full EMI payments instead of pre-EMI payments.
If the individual taxpayer in India is fulfilling the conditions as mentioned in Section 80EEA of the Income Tax Act, that person is eligible to claim the tax benefits even in the pre-construction period.
