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Home Construction Loan

Aavas Financiers offers 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 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.

The land may be free-hold or a plot allotted by Development Authority. We are a perfect partner for your preferred property, which may be:

  • Development Authority
  • Freehold
  • Nagar Palika
  • Gram Panchayat

We are also offering Flexible Loan Tenure of up to

  • 30 years for salaried customers (from government/ PSU/ Private sector). Net Salary should be more than 35,000/- per month.
  • 25 years for other salaried customers.
  • 20 years for self-employed customers

Note: Loan tenure not to exceed residual age of property at the time of disbursement

Moreover, you can apply through our Aavas Loan App to ensure faster processing of your home construction 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

Benefits of Home Construction Loan

  • Integrated branch network that facilitates loan servicing at a branch convenient to you.
  • Avail Tax benefit on Construction Loan.
  • PMAY Credit Linked Subsidy Scheme (PMAY CLSS) *
  • Best Home Loan eligibility to construct home as per your need.
  • Availability of wide range of payment modes.
  • Professional team to provide you 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   secured 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 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.

*One should fulfil the eligibility criteria for PMAY linked Subsidy scheme in order to avail the scheme benefit.
*Construction loan is available for plot purchase plus construction only. Standalone plot purchase loan is not applicable and borrower needs to complete the construction within 3 years of availing construction loan.

Required for Land Purchase & Construction Loans

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
Other Documents
  • Signed Application Form with Picture
  • Cheque For Processing Fee
  • Bank Statement of Last 6 Months
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
Other Documents
  • Signed Application Form With Picture
  • Cheque For Processing Fee
  • Bank Statement of Last 6 Months
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)

To get more details about the Documents Required for Land Purchase & Construction Loans Click Here

Some interesting facts on Home Construction Loan

  • Nearly 23.22% applications of the total applications were for a construction loan.
  • In the last 30 days, the most active age group who were looking for a construction loan have had an average of 42 years.
  • 28.05% of home loan applicants were men and 18.74% 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?
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Loan Amount, i.e=1000000

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.

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