A composite loan is a loan taken for self-construction of a house. The
loan is given to finance the cost of the land and the construction of
property on such land.
The banks will require documents of proof of
income, identity, residence and documents relating to title of the
property being purchased. You will have to submit an estimate of the
total cost of construction, certified by an architect/civil engineer.
The cost of the plot to you or the current market value, whichever is
lower, will be taken into account to work out the total cost of the
project, provided you commence the construction within a reasonable time
after purchase of the plot.
The bank will determine the home loan amount eligibility based on the total cost comprising construction and land cost. The loan will be released in parts, based on the progress of the construction, and after you have brought in your full contribution. The bank may insist on sending its own personnel to assess the construction progress or may rely on certificates/photographs submitted by you.
The bank will determine the home loan amount eligibility based on the total cost comprising construction and land cost. The loan will be released in parts, based on the progress of the construction, and after you have brought in your full contribution. The bank may insist on sending its own personnel to assess the construction progress or may rely on certificates/photographs submitted by you.
Some banks are not comfortable funding self-constructed properties. You will need to take this into account while finalising your lender.
Below are the links to the websites of leading lenders:
- Axis Bank
- DHFL Vyasa Housing Finance
- GIC Housing Finance
- HDFC Ltd.
- HSBC Bank
- ICICI Home Finance Co. Ltd.
- IDBI Home Finance Ltd.
- India Infoline Housing Finance Ltd.
- Indiabullls Housing Finance Ltd.
- LIC Housing Finance
- PNB Housing Finance Ltd.
- Reliance Home Finance Private Limited
- State Bank of India (SBI)
- Sundaram BNP Paribas Home Finance Ltd.
