At times, we think of purchasing a house but we don't have enough resources to purchase one. For a house or flat you can easily apply for a home loan but what if you want to build a house as per your idea? What if you want to build your dream home? For this, the best option is a construction loan. I will share with you what is construction loan? How to get financing to build a house? What is the eligibility criteria?
Can I get a loan to build my own home?
We all wonder if banks give loans to build your own house. Well, for house construction you can easily get a construction loan. A loan used for construction of houses is called a construction loan. Leading bank institutions such as SBI, HDFC, ICICI bank, etc provide construction loans to the borrowers.
I hope this clears your doubt: do banks give loans to build your own house?
Construction loan: Eligibility Criteria
The age to apply for construction loan is between 18 years to 65 years.
To secure construction loan you have to be an Indian or NRI (non-resident Indian)
A self-employed or salaried individual can apply for construction loan
The minimum credit score to secure construction loan is 750.
A minimum of Rs 25,000 per month income is required to secure a construction loan.
What documents needed to get loan for construction?
Identity Proof
Residential Proof
Income Proof
Property documents including Encumbrance Certificate, Title Deeds of the Plot, Estimate for construction assessed by a Civil Engineer/ an Architect.
Copy of sanctioned plan by local authorities.
Banks can ask for other documents other than the documents mentioned above.
The minimum interest rate at which banks are giving loans to its borrowers is 6.95 per annum. SBI is the bank who is providing construction loan at such low interest rates.
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How to get financing to build a house?
Amish
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2022-03-22T10:08:00+00:00 2023-10-18T17:11:53+00:00Comment
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