Many banks and financial institutions offer affordable building construction loan at attractive interest rate to help you with the construction of a house or residential property. The process involves easy documentation and flexible repayment tenure.
House Construction Loan is availed of by those customers who own a piece of land and need financial assistance for the construction of a house thereon. These loans cover expenses of construction and come with flexible repayment tenure of up to 30 years.
| Loan amount | Up to 90% of the construction value |
| Tenure | Up to 30 years |
| Rate of interest | 7.30% p.a. onwards |
| Age | 21 to 70 years |
| Tax benefits | Up to Rs. 2 Lakhs on interest & Rs. 1.50 Lakhs on principal amount |
Also Check: Best Home Loan for Salaried Person before applying for a loan
Following are the key features and benefits of home construction loan:
Also Read – LRD Loans
Below is the table for home construction loan interest rates as well as processing fees for all leading banks:
| Bank Name | Rate of Interest | Processing Fees |
|---|---|---|
| SBI | Starting at 7.95% p.a. | 0.40% of the loan amount + GST |
| ICICI Bank | Starting at 8.90% p.a. | 0.50% of the loan amount + GST |
| HDFC Bank | Starting at 8.00% p.a. | 0.50% of the loan amount + GST |
| Bank of Baroda | Starting at 7.45% p.a. | 1% of the loan amount + GST |
| Punjab National Bank | Starting at 7.95% p.a. | 0.35% of the loan amount+Applicable Tax |
| YES Bank | Starting at 9.35% p.a. | 2% of the loan amount + GST |
| Canara Bank | Starting at 8.05% p.a. | 0.50% of the loan amount + GST |
| Bank of India | Starting at 8.10% p.a. | 0.25% of the loan amount + GST |
Additional Info: You can also check Best Home Loan Interest Rates
Below are the detailed home construction loan eligibility criteria for salaried and self-employed applicants:
Eligibility for Salaried Applicants
Eligibility for Self-employed Applicants
Additional Info: Also check Pan Number for Banks
Following are the documents required for home construction loan application:
Additional Info: Looking for Plot Loan
*This above-mentioned documentation list may vary based on the applicant’s profile and the lender’s requirement.
Additional Info: Also check Documents Required For Home Loan
Following are some of the best banks for house building loan in India:
Additional Info: Also Read: SBI Plot Loan
You can also Apply for HDFC Plot Loan
Additional Info: Also Check Best Banks for Home Loan in India in 2022
You can apply for a home construction loan online through fastmudra.in by simply following the steps given below:
Additional Info: Check 35 Lakh Home Loan EMI Apply Online.
Home loan interest rates are the lowest ever in the past 15 years. With raining festival offers on home loan, currently you can avail of the best interest rate on Bajaj Finserv home loan @7.70% p.a for all loan amounts.
You can avail the lowest Home Loan EMI at Rs. 727/- per lakh with maximum repayment flexibility. Some options are Step-Up EMIs, Step Down EMIs, Moratorium, OD facility, balance transfer, top up and more.
Home Loans at floating interest rate (linked to repo rate) offer you ultimate prepayment flexibility. There is no part or full prepayment charge. You can prepay early & reduce interest cost as per your cash flows.
