Smart EMI Calculator
Loan: ₹35.0L • Rate: 6.5% • Term: 20 Yrs
About Construction Loan
A Home Construction Loan is specifically designed for individuals who already own a plot of land and wish to construct a house on it according to their own design and specifications. Unlike a standard home loan where the entire amount is paid to the builder at once, a construction loan disburses funds in logical stages (tranches) mirroring the actual progress of construction on your site.
This tranche-based disbursement is highly beneficial for you. During the construction phase (typically 12 to 18 months), you are not burdened with paying the full EMI. Instead, you only pay 'Pre-EMI', which is simple interest calculated solely on the amount that has actually been disbursed. This significantly eases your cash flow during the intensive building period.
To avail of a construction loan, you will need an architect or a civil engineer to provide a detailed estimate of the construction costs, along with approved building plans from the local municipality. Our technical teams will conduct periodic site visits to verify the completion of stages (like foundation, roof casting, and plastering) before releasing subsequent funds directly to you or your contractor.
Key Benefits
- Pay only simple interest (Pre-EMI) during the construction phase.
- Tranche-based disbursements ensure funds are not misused and align with actual progress.
- Funding available up to 100% of the construction estimate (subject to overall LTV caps).
- Long repayment tenures up to 20-30 years once the house is completed.
- Tax benefits available under Section 24b and Section 80C after completion.
- Complete flexibility to hire your own architect and contractors.
Why Choose Our Construction Loan?
We partner with top banks to bring you unbeatable terms, transparency, and zero hidden charges.
Tranche Disbursements
We release funds in stages (plinth level, roof casting, finishing) directly matching your architect's progress report.
Lower Initial Burden
During the construction phase (up to 18 months), you only pay 'Pre-EMI' (simple interest on the disbursed amount), not the full EMI.
Customized Estimates
Loan amount is approved based on a civil engineer's or architect's verified estimate of construction costs.
Who Can Apply?
- 1Land Ownership: You must hold clear, marketable title deeds to the plot in your name.
- 2Approvals: Must have the building plan approved by the local municipal authority.
Document Checklist
Construction Documents
- Approved Building Plan/Map
- Construction Cost Estimate by an Architect
- Permission to Construct from Authority
Land Documents
- Registered Sale Deed/Lease Deed
- Latest Property Tax Receipt
- Encumbrance Certificate