Loan For Construction

HDFC Bank Home Loans

HDFC Bank offers various financial products for both individuals as well as organizations. Loans for construction are offered to both individuals – either jointly or singly – or to builders for construction of home. HDFC Bank loans for construction loans can be categorized as regular and telescopic loans. The maximum tenure under each category is as under –

• Telescopic Loans – 30 years
• Regular Loans – 20 years

Building projects are funded depending upon the amount of loan requested and the value of the project. The general limits are as under –

HDFC Bank offers two types of interest rates on construction loans – the floating or adjustable rate and the fixed rate. Applicants may choose the type of interest they would like to pay.

The floating or adjustable rate is linked to the Retail Prime Lending Rate (RPLR). The interest – and therefore the EMI – payable would change with every change in RPLR.

Repayment of loan is completed in Equated Monthly Instalments (EMI) and there are various options available. An option chosen at the time of application remains constant throughout the term of the loan. The following are the options available –

• Accelerated Repayment :

The repayment of the loan is accelerated – hastened – and the loan is repaid within a short term. This option attracts higher EMI since the amount + interest repaid with each instalment is higher.

• Telescopic Repayment :

Under this option, the payment is extended over a long period with smaller EMIs to relieve the burden on the borrower.

• Set Up Repayment Facility (SURF) :

Under this option, the amount of EMI is linked with the amount of pay hike you expect to receive. The EMI in the initial years is low. The amount rises as you grow in your career and enhance your income.

• Flexible Loan Instalment Facility (FLIP) :

This option is the converse of the SURF option. The amount of EMI is heavy during the initial years and decreases as the loan term progresses. It is ideal for those nearing retirement and expecting their income to diminish in the latter years of the term.

HDFC Bank’s loan for construction loan attracts a processing fee of 1.25% of the amount sanctioned subject to a minimum of Rs.3000.

Aditya Birla Capital Home Finance

Aditya Birla Capital offers loans to both real estate developers as well as individuals for construction of homes. The terms under the loan are –

The property will be mortgaged to the bank for the duration of the loan.

Eligibility criteria vary from applicant to applicant depending on whether the applicant is an individual – salaried or self-employed – a sole proprietor, partnership, LLC, or other type of organization.

For more details, please visit the lender website.

Bajaj Finserv Home Loans

Bajaj Finserv Home Loan offers flexibility of loan amount. When an applicant applies for loan, the entire sanctioned amount will be available. However, interest will be charged only on the amount actually utilized. This allows individuals the security of having the amount available as well as relief from heavy interests and EMI.

Bajaj Finserv also offers various value added features such as 72 hour disbursals, quick approvals, and low interest rates.

Bajaj Finserv Home Construction Loan attracts a processing fee of 0.9% and a penalty of Rs. 1000 for EMI default including bounced checks.

The information provided here is not exhaustive and is subject to change by the concerned organization at any time. Please visit the respective websites for detailed and up to date information.

FAQs of Loan for Construction