Home Construction Loan

Aavas Financiers offers home construction loan for the purpose of self-construction of a residential house property.

An easy loan from a financial institution to purchase a plot and construct a home is one of the most popular ways to make your dream home a reality. However, it is recommended to check your home 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 home construction loan and how much will be your monthly EMI.

What is a home construction loan?

A user opts for a home construction loan at the time when he or she wishes to construct their dream house for residential use. A home construction loan helps customers to build a house of their own by providing financial support. For the ease and convenience of the customers, Aavas home construction loan offers easy approvals and quick disbursals.

Benefits of Home Construction Loan

Integrated branch network that facilitates loan servicing at a branch convenient to you.
Avail Tax benefit on Home Construction Loan.
Best Home Loan eligibility to construct home as per your need.

Availability of wide range of payment modes.
Professional team to provide you with doorstep services<
Speedy home loan processing and fast disbursals

Features of Home Construction Loan

Attractive Interest rates
Tranche-wise disbursement as per the stage of construction
Non-income proof customers may also apply
Flexible Tenure
Easy, minimal documentation

No hidden charges
Reliable and secure storage of documents.
Extensive reach in rural India

Eligibility for Home Construction Loan

Applicant should be a resident of India
Applicant should be at least 18 years of age to be considered eligible for the loan.
For salaried borrowers, maximum 65 years of age at the time of retirement whichever is less at the time of loan maturity.
For self-employed borrowers, maximum 70 years at the time of home loan application or 80 years at the time of loan maturity is considered for eligibility.
Minimum loan amount in home loan that can be provided is Rs 1 lakh.

*Home construction loan is available for plot purchase plus construction only. Standalone plot purchase loan is not applicable and the borrower needs to complete the construction within 3 years of availing a house construction loan.

Documents Required for Land Purchase & Home Construction Loans

For Salaried People
For Self Employed People

Identity Proof

Your PAN Card is mandatory, and any one of these:

Passport
Voter ID
Aadhar Card
Driving License

Address Proof

Passport
Voter ID
Aadhar Card
Electricity bill/ water bill/ telephone bill
Driving License

Proof of Income

Salary Slips/Bank Statement/Form 16
Salary Certificate

Property Documents

Title Deeds of the Property
Proof of No Encumbrances on the property
Copy of the plans, approved by the Local Authorities
Construction estimate by an Architect/Civil engineer

Identity Proof

Your PAN Card is mandatory, and any one of these:

Passport
Voter ID
Aadhar Card
Driving License

Address Proof

Passport
Voter ID
Aadhar Card
Electricity bill/ water bill/ telephone bill
Driving License

Proof of Income

IT Returns and/or Financial Statements of last 3 years And/or
Informal Income Documents

Property Documents

Title Deeds of the Property
Proof of No Encumbrances on the property
Copy of the plans, approved by the Local Authorities
Construction estimate by an Architect/Civil engineer

Note 1: For a full list of KYC documents, visit your nearest Aavas Financiers’ Branch.
Note 2: Make sure all your documents are valid (not past expiry date in case of Driving License and Passport)

Click to get more details about the Documents Required for Land Purchase & Home Construction Loans

Why take a Home Construction loan?

It offers the freedom to create your own space as per your likes and preferences. A home construction loan allows you to build your dream house where you can choose everything by yourself such as interior, structure, design, color, construction material, etc. It offers a better sense of accomplishment when everything is as per your choice.
In comparison with other loans where you need to pay interest on the entire amount, home construction loans allow you to pay the interest only on the disbursed amount. Also, Aavas offers competitive home construction loan interest rates.
If you take a home loan for construction on land then you are free to extend or renovate your home in the future by taking a home improvement loan from Aavas and making changes as per your needs and comfort level.

For quick approvals, you must check your loan eligibility by using the free home construction loan eligibility calculator. As well, with an online home construction loan calculator, you can know the monthly EMI to help you in planning your finances well.

Some interesting facts on Home Construction Loan

Nearly 22.28% applications of the total applications were for construction loan.
In the last 30 days, the most active age group who were looking for a construction loan has had an average of 42 years.

64.05% of home construction loan applicants were men and 34.62% of applicants were women, who wanted to construct their homes
Rajasthan has witnessed a notable hike in the number of people looking for a home construction loan.

Need Assistance?

Toll Free
1800-20-888-20

Apply For Home Construction Loan

Plot Purchase plus Home Construction Loan FAQs

Home construction Loan is meant only for construction or plot purchase + construction.

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.

Fill up the application form
Submit the required documents such as land documents, age and residence proof and income details.
On successful submission of the application, deposit the processing fee
After loan approval, you will get the required home 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.