When you construct your own home, you have the flexibility to customize every aspect of the house, from the number of rooms, the materials, internal arrangements, etc. However, paying for the entire construction cost out of your pocket may be difficult. A home construction loan is a feasible solution in such a scenario. Read on to know the various aspects of a home construction loan.
What is a home construction loan?
A home construction loan is a loan you get when you are building a structure over an empty plot of land that you own.
The major benefit of this loan is that the entire loan amount isn’t disbursed at one go. Depending on the stage of construction, you can demand for funds (draw request) from your lender. Also, you pay interest only on the amount utilized and not on the entire loan amount.
Significance of credit score
Just like other loans, your lender takes in to account your credit score before approving a home construction loan. A good credit score will help get you the loan at an attractive rate of interest.
Essential things to note
Note that home construction loans are only provided for the external structure of the house to be constructed. The loan amount generally doesn’t take in to account the interior works that include painting, plumbing, lighting, furniture, etc. Any deviations from the approved plan will be excluded.
Apart from your credit score, your monthly income, the down payment made, and the value of the plot will determine your eligibility. Other than your basic KYC documents, you will have to submit a few other documents like ownership document for land, detailed plan of the house design, license certificate of a qualified builder and building permits from the municipal authorities.
Do you have the plot and your dream home design ready? Turn your dream in to reality with the Bajaj Finserv Home Construction Loan.
With disbursal in 72 hours, our home construction loan ensures you can easily address this essential financial goal. With our instant approval and quick processing of all your draw requests, you have reliable access to finance to ensure your dreams turn in to reality.
Also, with pre-approved offers on home loans, business loan and personal loan among others, availing finance is a hassle-free affair with Bajaj Finserv. Know your pre-approved offer by sharing a few basic details.
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