Every person yearns to own a home at some point in life. You will need your own home to support a family or have a robust real estate investment. We offer Home Loans and Home Construction Loans or Construction Loans, as they are popularly known, to fulfill this dream with simple documentation and flexible repayment schemes. Both the loans come in handy when you plan for a residential property. But, there are quite a few differences between Home Loans and Construction Loans that you must know about.

Let us look at the differences and understand which loan best suits your need.

Eligibility :

  • Permanent and Contractual employees working in State Govt./Central Govt. offices. State/Central Govt. /undertaking Govt. /Govt. aided school/Madrasha/Primary School/Govt. Aided libraries/Colleges/Employes of local Self-Govt. Institution/Statutory Bodies eligible to become nominal member of the Bank.
  • Reputed professional/business person

Purpose :

  • Construction of dwelling House.
  • Purchase of yearly built House /Flat.
Points of Difference Home Loans House Building Loan
Documents Required

Some of the required documents for Home Loan for verification are:

* KYC Documents * Papers of the Property * Income Proof

In addition to documents needed for Home Loans, you also need to provide:

* Approval from the Municipal Corporation * Architect-authorised construction blueprint
Interest Rate * As may be decided by the bank from time to time. * Floating rate is generally lower compared to Fixed Rate
Disbursal

Once you get the approval for the loan, the lender transfers the entire amount of the loan to your bank account.

In the case of Construction Loans, the lender will transfer the loan amount in installments.

Maximum amount of Loan :

  • For salaried person, the maximum amount would be 80% of the project cost on the basis of certain Rules & Regulations.
  • In case of professional/business man the maximum loan amount would be 75%-80% of the project cost on the basis of certain Rules & regulations.

Processing Fee :

There are certain processing fees decided by the Bank authority time to time.

Repayment Period :

The maximum period of repayment is 25 years but should not be beyond 60 years for salaried persons and 70 years for professional/ businessmen.