Home Construction Loan

Introduction to Home Construction Loans in India

A Home Construction Loan is a special type of home loan designed to provide financial support for building a new house on an owned plot of land. Unlike a regular home loan (used to buy a ready property), this loan is disbursed in stages, based on the progress of construction, ensuring funds are available at every step of the building process.

• Constructing a new house on a self-owned plot

• Expanding or adding new floors to an existing house

• Completing partially constructed property

• Stage-wise disbursement according to construction progress

• Flexible repayment tenure (up to 20–30 years)

• Secured loan with land/property as collateral

• Interest rates similar to home loans

• Tax benefits available under the Income Tax Act on both principal and interest repayments