Builder loan

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:

• Electronic Clearing Service (ECS)/ National Automated Clearing House(NACH)- based on standing instructions, given to your bank
• Post Dated Cheques (PDCs) - Drawn on your salary/savings account. (Only for locations where ECS/NACH facility is not available.)

ID & Address Proof (Any One Required)

• 1. PAN card (Mandatory, if income is considered for loan eligibility calculation)
• 2. Valid Passport
• 3. Voter ID card
• 4. Driving license
• 5. Aadhar Card

Residence Proof (Any One Required))

• 1. Utility Bill: Electricity, Telephone, Postpaid mobile, water bill etc.
• 2. Ration card
• 3. Letter from employer
• 4. Bank statement /copy of Pass book reflecting address
• 5. Valid Rent Agreement
• 6. Sale Deed

Salaried Individuals

• 1. Salary slips for the last 2 months or salary certificate*
• 2. Cash Salary – Income details on Company Letterhead
• 3. Copy of bank statements for the past 3 months (salary account)
  *If variable components like over time and incentives are reflected, then salary slips for the past 6 months are required.

Self-Employed Professional

• 1. Certificate of qualification for professionals : CA, Doctors or Architects
• 2. Copy of last two years’ income tax returns, along with computation of income
• 3. Copy of last two years’ P/L account with all schedules and audited balance sheet, wherever applicable.
• 4.VAT or Service Tax returns or TDS Certificate
• 5. Bank statement for the last 6 months (Savings account, current account and O/D account)

Self-Employed Non Professionals

• 1. Copy of your last two years’ income tax returns, along with computation of income
• 2. Copy of last two years’ P/L account with all schedules and audited balance sheet, wherever applicable
• 3.VAT or Service Tax returns or TDS Certificate
• 4. Bank statement for the last 6 months (Savings account, current account and O/D account)

Self-Employed Non Professionals

• 1. Allotment letter from builder
• 2. Agreement of Sale
• 3. Registration and stamp duty receipt
• 4. ndex- ii
• 5. NOC from builder
• 6. Own Contribution Receipt (OCR )
• 7. All builder linked documents (Applicable for cases which are not approved or previously not funded by DHFL)
• 8. Tripartite Agreement
• 9. Partnership Deed
• 10. Sale Deed
• 11. Title Search Report
• 12. NA order

Note: Original documents are required for verification purpose only