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.
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.
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 loan amount is released in multiple phases aligned with the construction progress, ensuring you only pay interest on the amount disbursed at each stage.
This reduces financial burden during the construction period.
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.
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 |
|
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.
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:
Appraisal/Promotion letter Investment proofs (FDs, shares, etc.) For Self-Employed Applicants:
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 |
|
Disclaimer: You may be asked to submit additional documents beyond the ones mentioned. Requirements may vary by lender.
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
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:
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:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.