A Builder loan is a short-term, interim loan to pay for the building of a house. As work progresses, the lender pays out the money in stages.
Builder loans are typically short term with a maximum of one year and have variable rates that move up and down with the prime rate. The rates on this type of loan are higher than rates on permanent mortgage loans. To gain approval, the lender will need to see a construction timetable, detailed plans, and a realistic budget, sometimes called the “story” behind the loan.
Once approved, the borrower will be put on a bank draft, or draw, schedule that follows the project’s construction stages and will typically be expected to make only interest payments during construction. As funds are requested, the lender will usually send someone to check on the job’s progress.
1. Loan Term -
The maximum term of your home construction loan can
be up to 30 years and it cannot extend beyond your
retirement age or 60* years (whichever is earlier).
*60 years for salaried individuals and 70 years for self-employed individuals.
2. Loan Amount- Your loan amount depends on your annual income and ability to repay the loan. You can increase your loan amount by adding an earning co-applicant. The loan disbursement is made first towards the purchase of plot and subsequently towards the construction of house on it.
3. Interest Rate & Charges - Your loan interest rate starts from 9.75%* p.a. Know more about fees and charges (*T&C Apply)
4. Modes of Repayment - You can pay your home loan EMIs through:
ID & Address Proof (Any One Required)
Residence Proof (Any One Required))
Salaried Individuals
Self-Employed Professional
Self-Employed Non Professionals
Self-Employed Non Professionals
Note: Original documents are required for verification purpose only