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Home Construction Loan — Build on Your Own Plot
Home Construction Loan
Fund the house you build on land you own
A home construction loan finances the cost of building a house on a plot you already own. Unlike a regular home loan, the money is released in tranches against construction milestones — foundation, slab, walls, finishing — and you pay only pre-EMI interest on the amount disbursed so far. Full EMIs begin once the house is complete. As an intermediary, we compare 30+ banks and housing-finance companies so your plan, estimate and drawdown schedule line up with the right lender.
We are not a lender — the loan is sanctioned and disbursed by our partner bank or HFC at their discretion, often with stage-wise inspections. Our advisory is free to you for most retail construction loans; we are compensated by the lender, never by hidden charges.
Loan amount*Up to ₹5 Cr
Interest rate*8.5%–10.75% p.a.
Max tenure*Up to 30 yrs
Funding of cost*Up to 90%
Disbursal*Stage-wise
*Indicative and subject to change — the actual amount, rate, tenure, funding share and disbursal schedule are set by the lender per RBI norms, your approved plan and your profile. See the full disclaimer in the footer.
Who it's for
Built for people building their own home
Plot owners building
You already own a clear-title, approved residential plot and are ready to construct on it.
Self-construction families
Building a family home your own way — supervising the work rather than buying a finished flat.
Plan-ready builders
You have an approved building plan and a cost estimate from a registered architect or civil engineer.
Land-plus-build buyers
Buying a plot and building on it together — a composite loan can fund both in one facility.
Features & benefits
Why borrowers choose a construction loan with us
Stage-wise disbursal
Funds are released in tranches against construction milestones, so interest accrues only on what you've drawn.
Up to 90% of cost
Finance up to 90% of the estimated construction cost — arrange the balance from your own funds.
Pre-EMI during build
Pay interest only on the disbursed amount while you build; full EMIs start after completion.
Composite land + build
Funding the plot too? A composite loan can wrap land purchase and construction into one facility.
Tax benefits after completion
§80C and §24(b) apply once the house is complete, with pre-construction interest spread over five years.
30+ lenders compared
One application, a written comparison, and an advisor you can reach by name.
Eligibility
Who qualifies for a construction loan
| Criteria | Salaried | Self-employed |
|---|---|---|
| Age | 21–60 years (at maturity) | 21–70 years (at maturity) |
| Income / vintage | Stable monthly income; usually 2+ years of work | Profitable business; usually 3+ years of ITRs |
| Plot ownership | Clear, marketable title to the plot in the applicant's name (or composite plot + build) | |
| Approved plan | Sanctioned building plan plus a cost estimate from a registered architect / civil engineer | |
| CIBIL score | Typically 700+ helps you qualify for sharper rates; we can still help if it's lower | |
| Co-applicant | Optional — adding an earning co-applicant can raise eligibility | |
Eligibility is indicative and finally determined by the lender's policy, the approved plan and the credit assessment.
Documents
What you'll typically need
Salaried
- PAN & Aadhaar (KYC), recent photographs
- Latest 3 months' salary slips
- Last 6 months' bank statements (salary account)
- Form 16 / latest 2 years' ITR
- Plot title deed & latest tax receipts
- Approved building plan + architect / engineer cost estimate
Self-employed
- PAN & Aadhaar (KYC), recent photographs
- Last 3 years' ITR with computation of income
- Audited financials / P&L & balance sheet
- Last 12 months' bank statements (business & personal)
- Plot title deed, chain of title & tax receipts
- Approved building plan + architect / engineer cost estimate
Exact documents vary by lender and profile — we share a personalised checklist once we understand your case.
Rates, fees & charges
Indicative cost of a construction loan
| Item | Indicative* |
|---|---|
| Interest rate | 8.5% – 10.75% p.a. (floating, linked to repo) |
| Funding of cost | Up to 90% of estimated construction cost |
| Processing fee | 0.25% – 1% of loan amount + GST |
| Stage inspection / valuation | ₹2,500 – ₹10,000 per stage (lender / property dependent) |
| Prepayment / foreclosure | NIL on floating-rate loans to individuals (RBI) |
| Late payment / bounce | Penal interest + flat charge as per sanction |
*Indicative as of the current period and subject to change without notice. Final rates and fees are set by the lender in the sanction letter.
How it works
From first call to disbursal —
four simple steps.
01
Share your goal
Tell us your plot, plan and budget — by phone or our web form.
02
Compare & choose
We compare 30+ lenders and present a clear, written shortlist.
03
Documentation & sanction
We prepare your file and coordinate verification, valuation and sanction.
04
Disbursal & beyond
Funds are released stage by stage — and we stay available for queries.
Tax benefits
Tax on a construction loan starts after completion
Benefits begin after completion
Income-tax deductions apply only after the house is complete and you take possession — typically marked by the completion certificate or first occupation. No deduction is allowed while construction is in progress.
§24(b) — up to ₹2 L on interest
Once construction is complete, claim interest on the loan for a self-occupied home — up to ₹2 lakh a year under §24(b).
§80C — up to ₹1.5 L on principal
Principal repaid after completion qualifies under §80C (within the overall ₹1.5 lakh limit) for a self-occupied home.
Pre-construction interest in 5 parts
Interest paid before completion is not lost — it is claimable in five equal annual instalments from the year construction is completed, within the §24(b) cap.
Timely completion matters
The full ₹2 lakh interest cap for a self-occupied home generally requires construction to finish within the period prescribed by the IT Act.
Keep your records
Retain the lender's interest certificate, completion certificate and possession proof to support every claim you make.
Tax benefits depend on your situation and the law in force, and apply only after construction is complete. This is general information, not tax advice — please confirm with a tax professional.
See your EMI and what you could borrow
Free, instant and built for Indian borrowers — estimate the EMI once your house is complete, with RBI LTV context and §80C / §24(b) tax-saving estimates.
FAQs
Home construction loan — questions, answered
The sanctioned amount is released in tranches that match your construction milestones — foundation, plinth, slab, walls, roof and finishing. The lender typically inspects or verifies each stage before releasing the next tranche, and interest accrues only on the amount disbursed so far, not on the full sanction.
During construction you pay pre-EMI — interest only on the amount disbursed so far, which keeps outflow low while you build. Once the house is complete and the full loan is disbursed, regular EMIs that repay both principal and interest begin over your chosen tenure.
Beyond standard KYC and income proofs, a construction loan needs the plot title deed and tax receipts, a building plan sanctioned by the local authority, and a detailed cost estimate from a registered architect or civil engineer. These let the lender size the loan and structure the stage-wise drawdown.
Tax benefits begin only after construction is complete and you take possession — usually evidenced by the completion certificate or first occupation. From that year you can claim §24(b) interest (up to ₹2 lakh for a self-occupied home) and §80C principal (within ₹1.5 lakh); no deduction is allowed while the house is still being built.
If you are buying the plot and building on it, many lenders offer a composite loan that funds both the land purchase and the construction in one facility, usually subject to construction starting within a set period. If you already own the plot, the loan funds the construction cost alone.
Yes — stage-wise inspections are normal. Before releasing each tranche, the lender's technical team usually checks that the previous milestone is complete and that the build matches the approved plan and estimate. A small inspection or valuation charge may apply at each stage as per the sanction terms.
Lenders typically fund up to about 90% of the estimated construction cost (indicative*), with the balance arranged from your own funds; the exact share depends on the lender's policy, RBI LTV norms, your profile and the engineer's estimate. For a composite land-plus-build loan the funding share is calculated on the combined value.
Tenure can run up to 30 years (indicative*), counted once full EMIs begin after completion, and is capped by your age at loan maturity. A longer tenure lowers the EMI but increases the total interest you pay over the life of the loan.
Ready to build your home?
Get a tailored construction-loan plan — free, with no obligation.
Tell us about your plot and plan and we'll compare 30+ lenders and come back with an honest cost picture and drawdown schedule.