Plot + Construction Loan

A regular home loan is offered for ready-to-move or under-construction properties. In contrast, a plot plus construction loan covers both the purchase of a plot and the construction of a house on it.

You can apply under the Plot + Construction Loan product. Submit the necessary documents, including proof of plot ownership and your construction plan. Once approved, the loan amount will cover both the plot purchase and the house construction.

Construction must commence within two years of purchasing the plot. If construction does not begin within this period, the plot loan may be converted into a non-housing loan (NHL), which could affect your loan interest rate.

The tenure for a plot purchase and construction loan can be up to 20 years, depending on your eligibility and repayment capacity.

You can apply jointly by adding the co-owner as a co-applicant.

For salaried applicants, salary slips, and bank statements are reviewed. For self-employed applicants, ITRs, bank statements, and GST returns are assessed. These help determine your loan eligibility based on your income and FOIR.

To apply for a plot construction loan, you must submit:

• Sale deed
• Title documents
• Encumbrance certificate
• Land conversion certificate (if applicable)

Each applicant must submit their KYC documents, proof of income, and ownership papers (if they are a co-owner). These are essential for processing a joint plot and construction loan.

If the plot is jointly owned, all owners must be included as co-applicants. Their combined income may be considered, and joint ownership documents must be submitted to process the loan for building a house.

The plot and construction loan is disbursed in stages—typically at the foundation, plinth, roof, and completion phases. Each stage is subject to verification by the technical team before release.

At every stage of construction, a site inspection and progress report are required. The technical team reviews the progress before approving the next disbursement of your house construction financing.