home loan on construction

Bank	Interest rate	Best for
State Bank of India	6.95% p.a.	Low Interest Rates
HDFC Bank	7.35% p.a.	Long-term Requirements
DHFL	9.50% p.a.	Easy Mode of Repayment
Canara Bank	6.90% p.a.	Low Processing Fees
PNB Housing Finance	9.25% p.a.	Non-Resident Indians (NRIs)
Aditya Birla Housing Finance	9.00% p.a.	Best for self-employed
Bank of Baroda	6.85% p.a.	Maximum number of top-up loans
Federal Bank	8.15% p.a.	Best Loan-to-Value

Best Loans for Home Construction

1. SBI Regular Home Loan

·         Interest rate concession for women applicants

·         Zero charges on prepayment

·         Extended loan repayment tenures

·         Starts at 6.95% p.a.

·         Up to 30 years

·         Rs.662 per lakh

·         0.35% of the loan amount (Min. Rs.2,000; Max. Rs.10,000)

2. HDFC Home Construction Loan

·         Can be availed by individuals looking to construct a house on a residential plot/or a Development Authority allotted plot

·         Longer loan tenures

·         Competitive interest rates

·         Interest rate: starts at 7.35% p.a.

·         tenure: Up to 30 years

·         Lowest EMI: Rs.689 per lakh

·         For Salaried: Up to 0.50% of the loan amount or Rs.3,000
For Self-employed: Up to Rs.1.50% of the loan amount or Rs.4,500

4. DHFL Home Construction Loan

·         Suitable for those looking to construct a house on an already owned plot/property.

·         Lowest Interest rate starts at 9.50% p.a.

·         Up to 30 years

·         Rs.841 per lakh

·         Up to Rs.20,000 + document charges

5. Canara Bank Home Construction Loan

·         Individuals above the age of 60 years also eligible for the loan

·         Available for both salaried and self-employed borrowers

·         Zero prepayment housing loans floating rate charges

·         Interest Rate: Starts at 6.90% p.a.

·         Tenure: Up to 30 years

·         Lowest EMI: Rs.659 per lakh

·         Up to 0.50% of the loan amount (Min. Rs.1,500; Max. Rs.10,000)

6. PNB Home Construction Loan

·         Extended loan tenures for a comfortable repayment period

·         Simple documentation and quick processing

·         Nominal processing fee

·         Interest Rate: Starts at 9.25% p.a.

·         Tenure: Up to 15 years

·         Lowest EMI: Rs.823 per lakh

·         Processing Fee: 2% of the loan amount

7. Aditya Birla Housing Finance Plot & Home Construction Loan

·         Up to 70 years maximum age at loan maturity for self-employed individuals 

·         Up to 90% of property value provided as a loan 

·         Can be used to purchase a residential plot as well for the home construction 

·         Interest Rates: 9.05% p.a

·         Loan Tenure: Up to 30 years

·         Lowest EMI: Rs. 808 per Lakh

·         Processing Fees:  Up to 1% of the loan amount

8. Bank of Baroda Home Construction Loan

·         Avail top-up loans up to 5 times during loan tenure 

·         Up to 90% of property value provided as a loan 

·         Can be used to purchase a residential plot as well for the home construction 

·         Interest Rates: 6.85% p.a.

·         Loan Tenure: Up to 30 years

·         Lowest EMI: Rs. 655 per Lakh

·         Processing Fees: Up to 0.50% of the loan amount

9. Federal Housing Loan

·         Loan to value of up to 85% of the property cost 

·         Loan amount of up to Rs.1500 lakh  

·         Interest Rates: 8.15% p.a.

·         Loan Tenure: Up to 30 years

·         Lowest EMI: Rs. 744 per Lakh

·         Processing Fees: Up to 0.50% of the loan amount

Eligibility Criteria for Salaried

Eligibility Criteria	Requirement
Age	·         Minimum Age: 18 years ·         Maximum Age: 65 years
Resident Type	The applicant must be (any one): ·         Resident Indian ·         Non-Resident Indian (NRI)
Employment	The applicant must be salaried and be working under the current employer for at least 1 year
Residence	The applicant must have (any one): ·         A permanent residence ·         Or a rented residence where he/she has resided for ·         at least 1 year before applying for loan
Credit score	A good credit report with a score of at least 750 or more obtained from a recognised credit bureau

Eligibility Criteria for Self-Employed

Eligibility Criteria	Requirement
Age	·         Minimum Age: 18 years ·         Maximum Age: 65 years
Resident Type	The applicant must be (any one): ·         Resident Indian ·         Non-Resident Indian (NRI)
Employment	The applicant must be (any one): ·         Self-Employed Professional (SEP) ·         Self-Employed Non-Professional (SENP)
Residence	The applicant must have (any one): ·         A permanent residence ·         Or a rented residence where the individual has ·          resided for at least 12 months before applying for loan
Credit score	A good credit report with a score of at least 750 or more obtained from a recognised credit bureau

Documents Required for Salaried

Proof of Identity (any one)	·         Aadhaar Card ·         Valid Passport ·         Voter ID Card ·         Valid Driving License ·         PAN Card
Proof of Residence (any one)	·         Valid Passport ·         Voter ID Card ·         Aadhar Card ·         Employer ID Card ·         Utility Bills
Proof of Income	·         Income Tax Returns and latest Form 16 ·         Salary account statements showing salary credits ·          for the last 6 months ·         Salary slips or certificated for the last 3 months
Property Related Documents	·         Encumbrance Certificate ·         Title Deeds of the Plot ·         Estimate for construction assessed by a Civil Engineer/ ·          an Architect ·         Photocopy of the plan sanctioned by Local Authorities
Other Documents	·         Own Contribution Proof ·         Appointment letter/employment contract If the current employment period is less than 12 months ·         Bank account statements indicating repayments  made towards other ongoing loans if any ·         Processing fee cheque in favour of the lending institution ·         Duly filled loan application form affixed with  passport size photographs of all the applicants/co-applicants.

Documents Required for Self-Employed

Proof of Identity (any one)	·         Voter ID Card ·         Valid Driving License ·         PAN Card ·         Valid Passport ·         Aadhaar Card
Proof of Residence (any one)	·         Aadhar Card ·         Utility Bills ·         Valid Passport ·         Voter ID Card ·         Employer ID Card
Proof of Income	·         Income Tax Returns coupled with the computation of income of both the applicant and the business entity (attested by a certified CA) for the last 3 assessment years ·         Balance Sheet and P & L account statements with Annexures/ Schedules of both the business entity and the applicant (attest by a certified CA) the last 3 years ·         Savings account statements of the applicant and the current  account statements of the business entity for the last 6 months
Property Related Documents	·         Title Deeds of the Plot ·         Estimate for construction assessed by a Civil Engineer/ an Architect ·         Encumbrance Certificate ·         Photocopy of the plan sanctioned by Local Authorities
Other Documents	·         Own Contribution Proof ·         Latest Form 26 AS ·         Business Profile ·         Memorandum and Articles of Association of the Company ·         Partnership deeds if the business entity is established as  a partnership firm ·         List of Shareholders and Directors with their respective ·         shareholdings if the business entity is established as a company (certified by a CA) ·         Bank account statements of both the individual and the business entity indicating details of ongoing loans if any ·         Processing fee cheque favouring the bank/financial institution ·         Duly filled application form affixed with passport size photographs of all the applicants/co-applicants and signed across.