Plot + Construction Loans

A composite loan that finances both the purchase of a residential plot and the construction of a house on it. Simplify your journey to a new home with a single loan product. One Loan, Two Dreams A Plot + Construction loan, also known as a composite loan, is the perfect solution for those who want to buy a piece of land and build their home on it. It streamlines the financing process by combining two separate needs into a single, convenient loan, saving you time and paperwork.

How It Works Single Application Process: Apply once for a loan that covers both land purchase and construction costs. Structured Disbursement: The first tranche is disbursed for the plot purchase. Subsequent tranches are released as construction progresses. Tax Benefits: Enjoy tax deductions on both the principal and interest components of the loan for the construction part, once the house is built and occupied.

Cost-Effective: Often more economical than taking two separate loans. Defined Timeline: Lenders usually require construction to begin within a specified period after the plot purchase. Eligibility Criteria Eligibility is similar to a standard home loan, but with added checks on the plot's legal status and the approved construction plan. The plot must be located within municipal or local development authority limits.