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BAJAJ FINSERV DIRECT LIMITED

Home Loan for Under-construction Property

Check interest rates, eligibility criteria, documents required and other key details for a home loan for an under-construction property and make an informed borrowing decision.

Max. Tenure 32 Years

Lending Partners 10+

Max. Amount ₹15 Crores

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Home Loan EMI Calculator

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Home Loan Interest Rate

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Tax Benefits for Home Loan

Plot Loan

What is a Home Loan for an Under-Construction Property

An under-construction property home loan enables you to purchase a property that is still being developed by a builder. The loan amount is disbursed in stages, in line with the construction progress, directly to the builder.

This approach ensures that you pay interest only on the disbursed amount, providing a cost-effective and efficient way to finance a new home. Opting for an under-construction property home loan provides financial flexibility, with funds disbursed as the construction progresses.

Features & Benefits of Home Loans for Under-construction Properties

Affordable EMIs

As the construction proceeds in stages, the loan is disbursed gradually, and the interest is charged only on the utilised amount.

Flexible Repayment Tenures

Benefit from customisable repayment periods which can extend up to 30 years depending on the lender’s terms, the borrower's age, etc.

Competitive Interest Rates

You can get attractive interest rates for under-construction properties, which can be more affordable if your credit score is high.

Tax Benefits

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.

Home Loan Calculator for Under-Construction Properties

This calculator helps you estimate your EMIs, total interest payable, and repayment schedule. This calculation is based on your loan amount, tenure, and interest rate.

Your Home Loan EMI

₹ 7,995

Total Interest Amount

₹ 918,775

Principal Amount

₹ 10,00,000

Total Payable Amount

₹ 19,18,775

Loan Amount

Interest Rate

- +

Tenure

- +

Calculate Now

A home loan calculator for an under-construction property provides instant and accurate results, allowing you to plan your finances effectively and choose the best loan offer.

Interest Rates of Home Loans for Under-construction Properties

When opting for an under-construction property home loan, you can choose from various partner lenders on Bajaj Markets. Here is the list of interest rates offered by various lenders and other key details:

Lender	Min. Interest Rates	Max. Loan Amount	Max. Tenure
Bajaj Housing Finance Limited	7.45% p.a.	₹15 Crores	384 months
PNB Housing Finance Limited	8.50% p.a.	₹15 Crores	360 months
ICICI Bank	9.00% p.a.	₹5 Crores	360 months
Truhome Finance	11.50%	₹1 Crore	300 months
India Shelter	13.00% p.a.	₹40 Lakhs	240 months
Vridhi Home Finance	12.00% 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 as per the lender’s discretion.

Eligibility Criteria for Home Loans for Under-construction Property

The following are the general requirements that a customer needs to fulfil to qualify for a home loan for an under-construction property from various lenders:

Parameter	Details
Nationality	Indian Resident
Age	21-70 years
Work Experience	For salaried individuals: Minimum 2 years For self-employed individuals: Minimum 3 years
Employment	Doctors with/without MD/MS, MBBS/BAMS/BHMS/BDS degree, CA, Architect, Lawyer, or tax professional, salaried applicant/self-employed professional/non-professional or a non-individual entity
CIBIL Score	650 or more
Income Requirement	A minimum of ₹15,000 per month (gross income), supported by a salary slip or ITR
Collateral Requirement	A residential property can be pledged
Guarantor / Co-applicant Requirement	Spouse, if you are married A close relative or a loan protection insurance policy if unmarried
Credit Behaviour	No Days Past Due (DPD) in the credit repayment record for the last 6 months

Disclaimer: Eligibility criteria are subject to change and may vary as per the lender’s terms and policies.

Documents Required for Home Loans for Under-construction Properties

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	Aadhaar Card Voter ID Card Passport Driving Licence PAN Card Latest degree to validate educational qualifications
Address Proof	Aadhaar Card Voter ID Card Passport Driving Licence NREGA card Letter issued by NPR with your name and address Utility bills (maintenance, electricity, etc.) Processing fee cheque
Income Proof	For Salaried Applicants: Form 16 Payslips for the last 3 months and bank statements Certified letter from the employer 2 years’ ITR with computation Appraisal/Promotion letter Investment proofs (FDs, shares, etc.) For Self-Employed Applicants: Income Tax Returns (ITR) for the last 2 years Proof of business ownership Bank account statements Details of Business Licence CA-attested Profit & Loss Statement and Balance Sheet Registration Certificate of Establishment (if applicable) Licence of Professional Practice (for consultants, doctors, etc.)
Property Proof	Allotment letter Sale Deed No objection certificate (NOC) from the society where the property is located Land and building tax paid receipts, possession certificate, and location sketch of the property, certified by the revenue authorities Original receipts of the advance payments that are made towards the purchase of a flat

Disclaimer: You may be asked to submit additional documents beyond the ones mentioned. Requirements may vary by lender.

How to Apply for a Home Loan for an Under-Construction Property

Applying for an under-construction property home loan is simple and can be done online with minimal documentation. Here are the steps you can follow:

Click on the ‘Check Offer’ button on this page
Select the ‘New Home Loan’ option from the dropdown menu and select your profession as salaried or self-employed
Enter your mobile number and the property's identified status
Accept the terms and conditions and click on ‘Apply Now’
Enter your basic personal details in the online application form and follow the steps ahead
Submit the form for verification and await loan approval

Things to Know Before Applying for a Home Loan on an Under-Construction Property

Before applying for a housing loan for an under-construction property, it is important to understand key factors. These can influence your loan approval, repayment, and overall financial planning. Here are some essential things to know:

Detailed Construction Plan: Have a well-defined plan with timelines, cost estimates, and necessary approvals to help lenders assess your project
Credit Score Requirement: Maintain a good credit score to improve eligibility and get better loan terms
Eligibility Criteria: Meet the lender’s requirements regarding age, income, employment, and property location
Loan Amount and LTV Ratio: Lenders usually offer up to 75–90% of the property’s value; the exact amount depends on your financial profile
Interest Rates and Fees: Compare rates and charges across lenders to choose the most cost-effective option
Documentation Requirements: Keep identity, income, and property-related documents ready for faster approval
Repayment Capacity: Evaluate your income and expenses to ensure you can manage EMIs comfortably during and after construction
Construction Timelines: Delays can affect fund disbursement; plan realistic schedules to stay on track
Legal Compliance: Ensure the project adheres to local building codes and regulations to avoid legal complications

Home Loan Disbursement Process for Under-Construction Properties

The home loan disbursement process for an under-construction property happens in stages, ensuring that funds are released based on the progress of construction. Here is how it works:

Pre-Disbursement: Before releasing funds, the lender verifies your loan application, validates the loan amount, and cross-checks all documents. The lender also ensures the builder’s credentials and reviews the construction plan before approval.
Phase-Wise Disbursement: The loan amount is released in parts, depending on the stage of construction. Initial funds are disbursed after signing the agreement, followed by further disbursements as foundation work, structure, and roofing progress, verified by the lender.
Interest Payment: During construction, you pay interest only on the disbursed amount. Once the entire loan is released and the property is ready for possession, regular EMI payments begin.

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Frequently Asked Questions

Can I get a home loan on an under-construction property?

Yes, you can get a home loan on an under-construction property. You can explore different lenders on Bajaj Markets and select a home loan of your choice.

Can I claim home loan tax benefits on an under-construction property?

You can claim tax benefits of up to ₹2 Lakhs on the interest paid under Section 24(b), and up to ₹1.5 Lakhs on the principal repayment under Section 80C of the Income Tax Act, 1961. These deductions can be claimed only after the construction of the property is completed and possession is obtained.

While the Income Tax Act does not explicitly require an Occupancy Certificate, it is generally considered as proof of completion or possession.

How is EMI calculated for an under-construction property?

You have to pay home loan EMIs from the start of the 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.

Can I pay the full EMI for an under-construction property?

Yes, you can pay full EMI for an under-construction property. However, it is dependent on the lender to decide whether you can be given the option for full EMI payments instead of pre-EMI payments.

Can I claim 80EEA for an under-construction property?

You cannot claim tax benefits under Section 80EEA for an under-construction property. The deduction is available only after construction is completed and possession is obtained.

What is pre-EMI in an under-construction property loan?

Pre-EMI is the interest payment made during the construction phase, where you pay only the interest on the disbursed loan amount. It helps reduce the financial burden until the full loan is released, after which regular EMIs commence.

Is the interest rate different from regular home loans?

Yes, the interest rate for under-construction property loans may differ from regular home loans. Rates vary based on factors such as loan type, tenure, credit score, property location, and whether the rate is fixed or floating.

What happens if construction is delayed?

If construction is delayed, you may need to pay pre-EMIs for a longer period, increasing overall costs. Delays can also affect tax benefits, extend EMI payments, or require seeking remedies under RERA for refunds or compensation.

What is the difference between ready-to-move-in and under-construction loans?

A ready-to-move-in home loan is disbursed in full at once, as the property is complete. An under-construction loan is released in phases based on project progress and typically begins with pre-EMIs, while ready-to-move-in properties start full EMI payments immediately.

Can we transfer home loans for an under-construction property?

Yes, you can transfer an under-construction home loan to another lender to benefit from better interest rates or terms. The transfer process depends on the lender’s policies and the stage of construction.