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Last updated on 31st January 2024
Additional Documentation for Home Construction Loans
Generally, any Indian resident, non-resident Indian (NRI), or person of Indian origin (PIO) with a steady source of income can apply for a house building loan. The applicant should be at least 21 years old at the beginning of the loan and up to 65 years or retirement age at loan maturity.
Home construction loans are typically the best option for house construction as they are specifically designed for this purpose. They offer features like a step-by-step disbursement method and the option to pay only interest during the construction phase.
Yes, you can get a home loan specifically designed for construction. These loans disburse the loan amount in installments based on the construction progress.
Yes, a home construction loan can be beneficial if you want to construct a house according to your design and specifications. It also allows you to pay only the interest component during the construction phase, which can ease the financial burden.
The tenure of a home construction loan can vary based on the lender, but it typically ranges from 5 to 30 years.
Some benefits include step-by-step disbursement of the loan amount, lower EMIs during the construction phase, and tax benefits
Yes, under Section 24(b) and Section 80C of the Income Tax Act, you can claim tax deductions on the interest and principal repayment of the loan, respectively.
For under-construction properties, you usually need to pay pre-EMIs, i.e., the interest on the amount disbursed until the full loan amount is disbursed or until the construction is completed. The principal repayment begins after the full loan amount has been disbursed.
Published on 2nd August 2023