An easy loan from a financial institution to purchase a plot to construct a home is one of the most popular ways to make your dream home a reality. However, it is recommended to check your construction loan eligibility with the help of this loan eligibility calculator and also check the EMI amount with this EMI calculator. These two calculators will tell you how much loan you can get under the house construction loan and how much will be your monthly EMI.
Moreover, you can apply through our Aavas Loan App to ensure faster processing of your home loan application.
To Get more details about the Documents Required for Salaried or Self employed person to take Land purchase and home construction loan Click Here
A plot plus construction loan is the amount borrowed to purchase a plot and build a house on the same plot. The loan amount is repaid in monthly installments.
The applicant must follow the following steps to apply for the land purchase and construction loan.
The construction loan borrowed from the institution can be used to purchase a land and construct on the same.
There is no tax benefits on the loan borrowed for land purchase. The tax benefit can only be availed when the borrower is going to construct a house on that particular land.
The minimum tenure for a loan for land purchase and home construction is 2 years and the maximum tenure is 15 years which can exceed up to 30 years in some cases.
There is no lower limit as to how long you have to keep the land before beginning the construction. However, it is important that you finish construction within 3 years of getting the land purchase and construction loan approved. You have to give a written undertaking to Aavas for the same.