Want to take loan from bank to build a house, know the process of taking loan and all the necessary information
Small cities Many people make their homes. If you are also planning to build your house and are preparing to take a loan from the bank for construction, we are giving you all the loan related to the loan. Let us tell you that a better option than personal loan can be self-construction home loan. This loan is different from traditional home loans, as it is taken for construction (construction) instead of buying a house. Let us know what is the self-construction home loan, what is its process, which people get it, what are the important documents, what are the tax benefits and what are it important to take care of.
What is a self-construction home loan?
Self-Construction Home Loan is a special type of loan that is given to those who already own their own land and want to build their house on it. This loan is not to buy a house but to build a house on its own. In this loan, money is not given in installments, not simultaneously, but according to the progress of construction. Before giving every installment, the bank site inspects whether the work is being done according to the plan. The bank usually gives a loan of up to 75% -90% of the total construction cost.
Eligibility for loan
- This loan can be received by salaried, self -employment and all qualified applicants doing business. Age should be between 18 and 75 years.
- It is necessary for this loan to be owned by land. The land should be registered in the name of the applicant and there should be no legal dispute on him.
- The minimum monthly income of the applicant should be ₹ 25,000.
- It is necessary to pass the map for house construction.
Required documents
- Identity Card: PAN Card, Aadhaar Card, Passport, Voter ID, Driving License
- Evidence of Address: Electricity/Water/Gas Bill, Passport, Rent Agreement etc.
- Documents of land ownership of land: registered cell deed, title deed, encumbrance certificate, property tax receipt
- Map: Accepted map
- Income Certificate: Salary Slip or ITR
- Bank Statement: 3 to 6 months bank account statement
- Construction cost estimate: detailed cost estimate certified by civil engineer or architect
Interest rates and other charges
- Interest rates are like common home loans, but may be slightly higher: 7.5% to 19%
- Processing fees: 0.5% to 2% of loan amount
- Site inspection fee
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