Financial banks and institutions provide extended loans to help buyers purchase a plot of land and for construction purposes within a limited time period. This is what is composite home loan called in simple words.
A loan that comprises a land loan and a construction loan is called a composite home loan. If you want to construct a house on land and you need loans I feel you should secure a composite housing loan.
Now that I have explained composite housing loan, I will share the experience about how my father secured a composite housing loan.
My father was looking for a loan and after visiting the SBI bank he learnt about the composite loan housing schemes.
The guidelines of SBI Realty Housing Loans allows an individual to take a composite loan under the condition that the piece of land purchased should have a fully constructed house within 5 years from the date of availing first disbursement on loan.
I will share with you the current interest rate and loan amount of SBI Realty Housing Loans.
| Interest Rate | 7.40% onwards |
| Loan Amount | Up to Rs. 15 crore |
| Loan Tenure | Up to 10 years |
| Processing Fees | 0.35% – 0.50% of the loan amount (Min. Rs. 2,000; Max. Rs. 10,000) + GST |
Some Important points to remember:
There is an interest rate concession for women
There is no prepayment penalty
The housing construction should begin within 5 years after availing the first disbursement of the loan.
The Age limit to get a composite loan is 18-35 years.
A salaried and self-employed individual can avail of this loan.
I hope you understand what is composite home loan now.
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What is composite home loan?
Nandu
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2022-03-11T18:47:57+00:00 2022-03-11T18:47:59+00:00Comment
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