Home Construction Loan

Last Updated 19th Jan 2021

Construction Loan – Rate as on 19 Jan 2021

Bank Interest Rate Processing Fee
SBI 6.80% 0.20% , Min Rs. 4,000, Max Rs. 17,400
HDFC 6.80% 0.25%, Min Rs. 3,000, Max Rs. 10,000
Bank of Baroda 6.85% Min Rs. 7,500
Citibank 6.75% NIL
ICICI Bank 7.10% 1.00%
Axis Bank 6.90% 0.20% , Min Rs. 5,000, Max Rs. 25,000
  • As per the current rates, Citibank offers the lowest interest rate of 6.75% along with a processing fee of % minimum 0 and maximum 0 for a home construction loan.
  • Other top banks that offer loans at best rates for construction of a house are SBI, HDFC, Bank of Baroda, Citibank and LIC Housing Finance.
Apply for Home Loan @ 6.75%* Get upto ₹ 1,000* Cashback

About Home Construction Loan

A home construction loan is a loan taken against the mortgage of the property on which you plan to carry new construction or renovation. For instance, if you plan to expand your house area and build one more floor on your existing property; then you can finance the construction of the house by taking a home construction loan

Compare Top Banks providing Construction Loan

Bank Interest Rate Tenure Processing Fee
SBI Home Loan 6.80% 30 years 0.20% , Min Rs. 4,000, Max Rs. 17,400
HDFC Home Loan 6.80% 30 years 0.25%, Min Rs. 3,000, Max Rs. 10,000
Citibank Home Loan 6.75% 25 years NIL
Bank of Baroda 6.85% 30 years Min Rs. 7,500
ICICI Bank 7.10% 30 years 1.00%
Axis Bank 6.90% 30 years 0.20% , Min Rs. 5,000, Max Rs. 25,000
PNB Housing Finance 7.35% 30 years 0.50%, Min Rs. 10,000
LIC Housing Finance 6.90% 30 years Min Rs.
Indiabulls 9.25% 25 years Min Rs. 7,500, Max Rs. 10,000
DBS Bank 7.30% 20 years Max Rs. 10,000
Aadhar Housing Finance 11.00% 30 years Min Rs. 3,500
Aavas Financiers 8.00% 30 years 1.00%
Kotak Bank 8.60% 20 years Max Rs. 10,000
Karnataka Bank 8.55% 30 years 0.25% , Min Rs. 250
Indian Bank 7.55% 20 years 0.23% , Max Rs. 20,381
GIC Housing Finance 10.25% 20 years Min Rs. 2,500
Dhan Laxmi Bank 7.40% 20 years 1.00% , Min Rs. 10,000
Sundaram Home Finance 8.60% 20 years 0.50%
Corporation Bank 8.35% 30 years 0.50% , Max Rs. 50,000
Bajaj Finserv 6.90% 20 years 0.35%
Bank of Maharashtra 8.20% 30 years 0.50%
Tata Capital 9.05% 30 years 0.50%
Andhra Bank 8.15% 30 years 0.50% , Max Rs. 10,000
LT Housing Finance 9.90% 30 years 2.00%, Min Rs. 4,999
Standard Chartered Bank 9.40% 20 years 1.00%, Min Rs. 5,000, Max Rs. 10,000
UCO Bank 6.90% 30 years 0.50% , Min Rs. 1,500, Max Rs. 15,000
PNB 7.15% 30 years 0.35% , Min Rs. 2,500, Max Rs. 15,000
Reliance Capital 10.00% 30 years 1.00%, Min Rs. 3,000, Max Rs. 6,500
OBC 8.00% 25 years 0.50% , Max Rs. 20,000
Jammu And Kashmir Bank 7.70% 15 years 0.25% , Min Rs. 500, Max Rs. 10,000
IDBI Bank 7.40% 30 years 0.50% , Min Rs. 2,500
Federal Bank 8.35% 30 years 0.50% , Min Rs. 3,000, Max Rs. 7,500
DCB Bank 10.24% 20 years 2.00%, Min Rs. 5,000
Central Bank of India 6.85% 30 years 0.50% , Max Rs. 20,000
Piramal Housing Finance 9.00% 30 years 0.10%
Bank of India 6.85% 30 years 0.25% , Min Rs. 1,500, Max Rs. 20,000
Yes Bank 9.85% 25 years 1.00%, Max Rs. 15,000
Allahabad Bank 8.25% 20 years 0.40% , Max Rs. 50,000
United Bank of India 8.00% 30 years 0.59% , Min Rs. 1,180, Max Rs. 11,800
Syndicate Bank 8.00% 30 years 0.13% , Min Rs. 500, Max Rs. 5,000
RBL Bank 10.45% 25 years Min Rs. 5,000, Max Rs. 15,000
Karur Vysya Bank 8.20% 25 years Min Rs. 5,000
Indian Overseas Bank 7.45% 30 years 0.53% , Min Rs. 8,900, Max Rs. 13,350
HSBC Bank 8.65% 25 years 1.00% , Max Rs. 10,000
Edelweiss 10.50% 25 years 0.25%
Canara Bank 8.05% 30 years 0.50% , Min Rs. 1,500, Max Rs. 10,000
IDFC First Bank 9.50% 30 years Min Rs. 5,000, Max Rs. 5,000
IIFL 8.70% 30 years 1.25%
Union Bank of India 8.25% 30 years 0.50% , Max Rs. 15,000
South Indian Bank 8.05% 30 years 1.00% , Max Rs. 10,000
Punjab and Sind Bank 8.05% 30 years 0.25% , Min Rs. 1,000, Max Rs. 15,000
Lakshmi Vilas Bank 9.70% 20 years 0.40% , Min Rs. 10,000, Max Rs. 20,000

Here are some of the major banks which provide home construction loans in India:

House Building Loan - Features & Benefits

A home building loan has the following benefits for any borrower who wish to construct a house on his plot or an additional floor on his house:

Construction Loan Eligibility Criteria

To avail the construction loan, you need to have a detailed construction plan about the house, including the materials to be used in the construction of the house. You can get a construction loan if you fulfill the following eligibility criteria:

House Construction Loan Documents

To get a home construction loan, you must get a pre-approval for the construction plan of property and submit the following documents:

FAQs

How much loan can I get for home construction?

You can apply for a home construction loan upto a loan amount of 90% of property’s value. However, the loan amount for construction loan ranges upto Rs. 150,000,000. You can also add a co-applicant to increase your loan eligibility.

What is required for a home construction loan?

To avail a home construction loan, you will need to submit the essential property documents such as encumbrance certificate, title deeds of the property, and estimated construction cost quotation so that the bank can evaluate that the property has a clean title and technical specifications. You also need to provide other documents for identity, address and income proof. Besides, having the essential documents you need to fulfill the basic eligibility criteria of the banks to grant a loan related to age, income and profession etc.

Where can I get a home construction loan?

Major Banks such as SBI, Axis Bank, PNB and Citibank provide home construction loans. You can decide about the best bank for a home construction loan based on the interest rates, processing fees, lending process and documents required for availing the loan.

Which bank is the best for construction loans?

HDFC can be considered as the best bank for construction loans as it provides loans at the lowest interest rate of 6.75%.

What are the current construction loan rates?

As on 19 Jan 2021, construction loan rates start from 6.75% rate of interest and range till 12.50% rate of interest.

Home Loan News - Jan 2021
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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