India’s construction industry witnessed a growth of 8.8% across 2018. Much of this can be attributed to improved investor confidence, housing projects, etc. While the Indian government increased its expenditure towards this sector by 20.9%, more and more individuals resorted to external funding assistance that would financially cover their construction requirements.
One such financial assistance is the home advances that can also be used as a home construction loan. With the freedom to construct a house that caters to the house owner’s requirements, the trend of utilizing home loans for house construction is on the rise.
All that borrowers need to do is ensure that they fulfil the following to avail such advances conveniently –
Meet the required eligibility criteria
Follow the eligibility criteria mentioned below –
For salaried applicants
- The minimum age limit of an applicant should be at least 25 years, and the maximum age limit should be at most 58 years.
- The working experience should be a minimum of 3 years.
- The nationality of an applicant should be Indian.
For non-salaried borrowers
- The range of age limit should be within 28 years and 70 years.
- The total experience in the business should be at least 5 years.
- The applicant should be an Indian citizen.
Compare lenders before settling for one
While selecting a lender, it is essential to look into some specific aspects like add-on facilities of attractive construction loan interest rates, foreclosure facilities, part prepayment, etc. Based on these features, an applicant selects a suitable lender.
Look into your current credit score
In case of secured advances, holding a high CIBIL score for a home loan is not a mandate. However, holding a credit score of 750+ ensures that you can negotiate with your lender for a lower rate of interest. An attractive interest rate ensures a reduced financial burden during the repayment process.
Provide the essential documents for salaried person
Following documents are needed for the person who gets salary –
- Passport-sized photographs.
- An identity proof which may include either of Aadhaar Card/ Voter’s ID Card/ PAN – Card/ Driving license/ Passport.
- Address proof which may encompass either of Aadhaar Card/ Voter’s ID Card/ Electricity bill/ Phone bill.
- Last six months of financial account transaction.
- Original salary certificate of the previous month.
- Computation of income.
- Signed identification.
Follow a convenient application process
To apply for home construction loans online, follow the steps mentioned below –
Step 1: Visit the official site of the chosen lender.
Step 2: Check the eligibility criteria to avail the construction loan.
Step 3: Compare the rates of interest of loans for different lenders through a home loan eligibility calculator.
Construction loan features and benefits
- Quick approval: The applicant does not need to wait for too long to approve the construction loan.
- Suitable repayment tenor: There is a flexibility to avail the construction loan. Selecting a convenient schedule in this loan can consider the financial obligation to reduce the monetary burden.
- Easy accessibility to online loan account: Update the detail of your loan along with scheduling the repayment, payable interest, and upcoming EMIs through the EMI calculator.
With access to such crucial pointers, borrowers now can learn about everything they need to know using a guide to understand home construction loans. Such access to convenient funding options ensures that they can continue with their construction requirements sans straining their budget. Make sure to approach a lender that offers you an array of lucrative features to make the most out of your availed finance.