An easy loan from a financial institution to purchase a plot or 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 land purchase 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, application processing through our smartphone application ensure faster processing of your home loan.
Features of Aavas Home Construction Loan
To Get more details about the Documents Required for Salaried or Self employed person to take Land purchase and home construction loan Click Here
Can I get a home loan for land purchase?
No. Home Loans are strictly meant for buying homes that are already built. For the purchase of land and for constructing plot + construction composite loan from Aavas.
What is a plot and home construction loan?
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.
How to apply for plot Purchase and construction loan?
The applicant must follow the following steps to apply for the land purchase loan.
Step 1 The borrower must fill the application form
Step 2- The borrower must submit the necessary documents, Original documents of land, Age proof v Id proof, Residence proof, Income statement, Bank statement, Form 16
Step 3- After successful submission of the documents, the loan amount is transferred to the borrower's bank account
How does a home construction loan work when buying a plot?
The construction loan borrowed from the institution can be used to purchase land, build a property on the land owned, or can be used to renovate the existing property.
Can I get a home construction Loan with no down payment?
No, while applying for the house construction loan the borrower has to pay 20% of the value of land as a down payment without any failure.
Are there any tax benefits on the land purchase and home construction loan?
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.
What are the minimum and maximum tenure of loan for land purchase?
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.
How many years can I keep the plot of land before starting construction?
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.