5 Things to Know About Home Loans for Under-Construction Property

Investing in a dream home often involves navigating through various financial options, with Home Loan being the most common choice for many. While purchasing an under-construction property offers the advantage of customisation and potential appreciation, it also comes with its own set of challenges, particularly when it comes to securing a Home Loan. Understanding the nuances of a Home Loan for under-construction properties is vital to ensure a smooth and hassle-free experience. 

Features of Home Loan for Under-Construction Property 

The Bajaj Housing Finance Home Loans for under-construction properties come with several benefits namely: 

 1. Loan Amount of Rs.5 Crore*:

Avail of a sizeable Home Loan of Rs.5 Crore* or even higher, depending on your eligibility. 

 2. Competitive Interest Rate of 8.50%* p.a. 

Our attractive housing loan interest rate is an opportunity you don't want to miss. With a rate of 8.50%* p.a., salaried applicants can enjoy the benefit of Home Loan EMIs as low as Rs.759/Lakh*.  

3. Repayment Tenor of 32 Years

To ensure convenient EMI repayment, you can opt for a longer tenor. By selecting a tenor of up to 32 years, you will be able to repay your loan amount at your own pace. 

4. Customized Repayment Options

If you're interested in buying an under-construction property and wish to start paying only a portion of your EMIs, we can offer you repayment options that are tailored to your needs. 
 

Read Also: Difference Between Home Loan and Construction Loan 

5 Tips While Opting for a Home Loan for Under-Construction Property

When opting for a Home Loan for an under-construction property you can benefit from the EMI Holiday Scheme, which offers borrowers to purchase a property by paying only a part of their interest for the initial period of their Home Loan tenor. The actual EMI begins after the full disbursal of the loan or possession of the property, whichever is earlier. The considerations for a constructed or under-construction property remain the same. Here are some considerations:  

1. Home Loan Amount and Eligibility

Lenders typically finance up to 80-90% of the property's value, depending on the applicant's eligibility criteria, such as income, credit score, and existing financial obligations. 

2. Interest Payments

During the construction phase, borrowers are usually required to pay only the interest component of the loan amount disbursed.   

3. Legal Due Diligence

Conducting thorough legal due diligence on the property and ensuring that all necessary approvals and clearances are in place is important to avoid any legal complications in the future. 

4. Builder’s Reputation  

Assessing the reputation and track record of the builder is essential to ensure the timely completion of the project and adherence to quality standards. 

5. Loan Agreement Terms

Carefully review the loan agreement terms, including the disbursal schedule, interest rates, processing fees, and prepayment charges, to avoid discrepancies later.  
 

Read Also: Home Loan Tax Benefits on an Under-Construction Property 

*Terms and conditions apply.