Are you wondering about getting a construction loan? Are you figuring out the best way to get the construction loan? Well, if you are having any financial issues with the construction then you can easily rely on the construction loan. Several banks provide such kind loans with interest. But before taking a construction loan, it is essential to learn every detail related to that.
First, you need to have a great mindset to deal with every situation and consequence. In addition to this, borrowing funds to purchase the land for the construction or for booking an under-construction property, you can also obtain it to get the house or Industry constructed on that specific plot. Mainly such lons are provided by all the leading financial institutions in India or banks.
What is a Construction Loan?
A construction loan is mainly taken against the mortgage of the property on which you can plan to carry out your new concept of construction or renovation. If you are decisive about expanding your construction area and you are considering building more on your existing property, then you can find financial help for the construction process of the home or Industry by taking a construction loan. Mainly you can get it from the banks.
Here are the central banks which will ensure to provide home construction loans in India:
You can go to the State bank of India to get it. State Bank of India is one of the leading public sector banks in India for construction loans. You can rely on this bank to get the construction loan most effectively. State bank of India also provides home construction loans at a meagre interest rate of about 6.5 per cent for a feature of 30 years. The best thing about this bank is that it does not charge any prepayment fees. The state bank of India provides an overdraft facility on such kind of loans, which mainly depends on the eligibility of your income and loan repayment capacity.
PNB Housing Finance is the other way to get the construction loan for your home construction. You can get such loan from PNB Housing Finance for around 7.35 per cent for the tenure of 30 years. Mainly PNB housing finance charged a processing fee of up to 1.00 per cent on the construction loan. The construction loan which is offered through the PNB is available for residents and non-residents as well. The best thing about construction loans from PNB is that there are no specific charges or penalties on the prepayment of home construction loans.
You can get a construction loan from HDFC Bank. HDFC Bank provides all Indian residents and nonresidents above 24 years who can apply for the construction loan for a tenure up to 30 years from the HDFC bank. The interest rate of HDFC Bank is about 6.75 percent as it charges processing fees for up to per cent. The best part of getting a construction loan from HDFC Bank is that it offers a special discount on the rates if the loan is taken by the female borrowers solely or even as a co-applicant.
There are several other banks like ICICI Bank and Citibank that provide construction loans with lower interest rates. You can consider any bank according to your preference and according to the low interest rate. You need to submit all the essential documents to access such kind of loan
Eligibility criteria of Construction Loan
It is essential to become eligible to access such loan. To avail of the construction loan, you will have to have detailed knowledge or construction plan about the house or industry, including the material used in the construction of the house. You can quickly get such loan if you can fulfil the eligibility criteria:
The age limit to get a kind of loan is between 18 to 70 years. Before or after that age, you will not get the loan. Most of the banks also give such kind of loans for a maximum period of 65 years.
The only salary-based or self-employed can access the loan. The interest rate is the minimum for the salary-based person.
It is essential to have a credit score of 750 or above which is the ideal score to avail the construction loan.
Any Indian resident or non-resident Indian can only apply for it.
Make sure to have identity proof like an aadhaar card, passport, voter id card, valid driving license, PAN card, and income proof.
It is essential to be mindful that such kind of loans are not the same as home loans or plot loans. It hold different pricing and include a lot of terms and conditions as well. If we talk about the process of approval and the disbursement of it, it is slightly different from other types of loans.