April 17, 2024
Construction loan Rates: Helping Hand for the Dream House
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Construction loan Rates: Helping Hand for the Dream House

Mar 12, 2024

There are a lot of loans banks and government schemes are providing. Nowadays if you need funds for any kind of business, property, or various kinds of things you do not need to ask for it from anybody. You can take a loan from the bank at a very low charge. Various banks are providing various loans. All the banks have various terms and conditions for their various loans. Borrowers should be aware of all the terms and conditions of the loan they are going to borrow. If you are not looking out all the terms and conditions, then you can face some issues. So today we will discuss about construction loan rates.

Sometimes people get confused between the home loans and construction loans. Don’t worry about that we will clear all your doubts regarding the construction loan and construction loan rates. I know that you don’t want to get scammed and do not want to borrow money from somebody like your relatives or some of your close relations. Then don’t skip this article and read every single word of it and it will fill you with great information that you will not face any trouble in the future.

About construction loan rates

These loans are provided to those people who do have a land and wants to build their house on it. Now these kind of loans is a great help to those who are looking to build their dream home. Many people own a land after that they lack some amount to build a house they were thinking. So this is a solution to the problem. There are no loopholes in this loan. Now there is a difference between the home loans and the construction loans. Home loan is something which you can borrow to buy a property(house) and the construction loan is something which you borrow to build a property. That is so normal. There is nothing to get confused between these two loans.

Construction loan rates according to the banks

  • Union Bank of India provide this at the interest rate of 8.50 percent to 12.00 percent and above.
  • State Bank of India lend this loan at an interest rate of 9.20 percent to 11.00 percent and it can go beyond that also.
  • When we talk about Axis Bank its interest rate falls between 10 percent to 13.5 percent
  • Central bank of India interest rate starts from 8.30 percent
  • HDFC Bank serves this loan at an interest rate of 9.0. percent
  • Punjab National Bank offers this loan at an interest rate of 9.00 percent to 14.00 percent
  • Kotak Mahindra Bank interest rate is 9.00 percent

Eligibility for construction loan: Employed Borrowers

  • The borrower resides in India or if they do not reside in India than also the borrower will be eligible to borrow this loan
  • The borrower should be having an official document which gives the proof of the residence of their house. It can be their own house and can be rented one but the criteria is that they should be living in that house for last 1 year.
  • The age of the borrower should be minimum 21 years and maximum 60 years.
  • The most common thing while borrowing a loan is your credit score. If your credit score is not good, then you are not allowed to borrow the loan. Your credit score should be 750 or above. 750 is the minimum credit score you need to qualify for the loan.
  • The borrower should be working somewhere. He should be working in that company for last 1 year and above.

Eligibility for construction loan: Self-employed or small businessman

  • The age factor should be same which starts from 21 years and ends at 60 years.
  • If the borrower does not reside in India but the citizen of India is eligible to borrow the loan
  • The borrower credit score will be same in this which is 750
  • The residence criteria will also be the same.
  • The borrower should be the working something for his or her living.

Common and required Documents for Construction loan

  • Passport
  • Voter ID card
  • PAN card
  • Driving License
  • Aadhar Card
  • Any of the above
  • Proof of Income
  • Land documents
Construction loan Rates
Construction loan Rates

Conclusion

To sum up I want to say that you can borrow the loan from the bank don’t spread your hands in front any individual. You can just compare the rates and the terms and conditions of the loan according to the bank. Then you will get a loan with a great ease and without any problem. I have shared a lot of information about the bank interest rates of different banks. You can research all the things wisely and can decide from which bank you have to borrow the loan. These loans are like helping hands to a lot of peoples who are having lack of funds. They can return the money slowly but can’t arrange that much from other places.

 Hope you find this article well informed and helpful. So always keep in mind to check all the aspects of the loan before taking it. Thank you for reading the article till the end. We will see you in the next article with great topic and information. Till then stay safe, stay healthy, and keep yourself updated.

Disclaimer

We just wrote an article on this. We do not promote such kind of things. If you are looking to borrow such loan than do it at your own risk.

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