Home Construction Loan

Build your home with the help of a home construction loan of up to ₹15 Crores available on Bajaj Markets

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Salaried Employee

Business Owner

✓ Home Loan from ₹2 Lakhs to ₹15 Crores ✓ Interest Rates Starting @ 8.50% Check Offer

A home construction loan can help you construct a residential property on a plot of non-agricultural land. On Bajaj Markets, you can get a home construction loan of up to ₹15 Crores at interest rates starting from just 8.50% p.a. The loan’s repayment is quite flexible with a tenure of up to 30 years to choose from.

Home Construction Loan Interest Rates

You can get a home construction loan from the following lenders through Bajaj Markets at low interest rates:

Lenders	Starting Interest Rate
PNB Housing Finance	8.50% p.a.
L&T Finance	8.60%
Home First Finance Company	9.50% p.a.
Kotak Mahindra Bank	9.00% p.a.
Shubham Housing Finance	10.90% p.a.
India Shelter	13% p.a.

*Disclaimer: The mentioned rates are subject to change at the lender’s discretion

Home Construction Loan Features and Benefits

Any borrower who wants to build a house on his plot or an additional floor on his property can benefit from a home construction loan.

Long tenure:

The home construction loan is available for extended periods of time, ranging from 5 to 30 years, implying that the burden of EMIs can be lowered.

Tax benefits:

With construction loans, you are eligible for a tax deduction on the principal and interest paid under Sections 80C and 24B. These sections allow for a tax benefit of up to ₹2 Lakhs on interest and ₹1. Read More5 Lakhs on principal, respectively. Sec 80 EE allows first-time buyers to claim an extra tax deduction of up to ₹50,000. Read Less

Balance transfer service:

Most financial institutions offer housing loan balance transfer options for house construction loans, just as they do for home loans. If a borrower discovers that his current rate of interest on a loan Read More is greater than the market rate, he can transfer the outstanding balance of his loans to another lender by paying a nominal processing fee. Read Less

Loan Amount:

The sanctioned amount of a home construction loan is determined by lenders after taking your income and repayment capabilities into consideration. Construction loans of up to 90% of the property's valu Read Moree are available. Having a co-applicant can improve your chances of getting a higher loan amount. Read Less

Is a Home Construction Loan Different from a Regular Home Loan

Yes, a home construction loan is different from your regular home loan in many ways. The differences are as follows:

Parameters	Home Construction Loans	Regular Home Loans
Interest rates	Home construction loan interest rates are higher compared to regular home loans	Housing Loan interest rates are lower in comparison to home construction loans
Repayment tenure	Tenure is shorter in comparison to regular home loans.	Tenure is longer in comparison to home construction loans. It can be up to 40 years.
Disbursal pattern	Money is disbursed in a phase-wise manner based on the stage of construction the house is in.	The entirety of the regular home loan amount is given to the borrower as a lump sum.
Documents required	Requires more documentation in comparison to regular home loans.	Requires lesser documentation in comparison to home construction loans.

Home Construction Loan - Eligibility Criteria

The home construction loan eligibility criteria you must satisfy as a salaried or a self-employed professional are as follows:

Eligibility Criteria	Salaried Professional	Self Employed Professional/Non-Professional
Age	18-65 years of age	18-65 years of age
Citizenship Type	Resident Indian or a Non-Resident Indian (NRI)	Resident Indian or a Non-Resident Indian (NRI)
Work Experience	You must have worked with your current employer for at least 1 year	You must be a self-employed professional or non-professional with a business experience of at least 5 years
Residence Type	You must have a permanent residence or must be living in a rented house for at least 1 year	You must have a permanent residence or must be living in a rented house for at least 1 year
Credit Score Criteria	750 or more	750 or more

Disclaimer: Please check with the lender before applying.

Documents Required for Home Construction Loan

If you are a salaried/self-employed applicant who is applying for a home construction loan, you will need the following documents:

1. Documents for Salaried Employees

Proof of Identity: Aadhaar Card and a valid passport
Proof of Residence: Valid passport and a Voter ID card
Proof of Income: Income Tax Returns and latest Form 16
Property Related Documents: Encumbrance Certificate and the title deeds of the plot

2. Documents for Self-Employed

Proof of Identity: Voter ID card and a valid driving licence
Proof of Residence: Aadhaar card and utility bills
Proof of Income: Income Tax Returns, as well as the applicant's and business entity's income computations for the previous three assessment years.
Property Related Documents: Title deeds of the plot and estimate for construction assessed by a civil engineer.

How to Apply for a Home Construction Loan

To apply for a home construction loan on Bajaj Markets, follow these simple steps:

Click on ‘CHECK OFFER’ on this page
Provide your personal and income-related information
Choose your preferred lender from the list provided
Enter the loan amount and tenure
Cross-check the details entered and submit the application
Following this, a representative will reach out to you for further proceedings

Home Loan Quick Links

Home Loan by Banks & HFCs

Home Loan by Amounts & Salary

How much loan can I get for home construction?

You can get a home construction loan of up to 90% of the aggregate building costs. However, the amount sanctioned to you depends on your eligibility and is at the discretion of the lender.

What is required for a home construction loan?

You'll need a solid credit score, a low debt-to-income ratio, and proof of sufficient income to qualify for a construction loan. When you apply for the loan, you must also make a down payment.

How is a home construction loan disbursed in phases?

The loan disbursal of a home construction loan is done in phases/ parts. The lender releases the money in line with the progress of construction.

How long does it take to get a home construction loan sanctioned?

While loan disbursal is often subject to various factors and conditions, most lenders initiate the disbursal within 72 hours of verification of the applicant’s information and documents.

What are the current construction loan interest rates?

Individuals can get a home construction loan for interest rates starting from 8.50% p.a. on Bajaj Markets. However, these rates are subject to change.

What is the tenure of a home construction loan?

Borrowers can get a repayment term of about 5-30 years on applying for a home construction loan. The tenure is likely to differ from one lender to another.

Is a construction loan the same as a home loan?

A home construction loan is a type of home loan, which allows you to build your own house on a plot. You can also build a new floor on your existing property with the help of this loan. It differs from a regular home loan, which allows you to buy an already-constructed apartment, or one that will be constructed later in the future.