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Plot Purchase and House Construction Loan

An easy loan from a financial institution to purchase a plot or to construct a home is one of the most popular ways to make your dream home a reality. However, it is recommended to check your land purchase eligibility with the help of this loan eligibility calculator and also check the EMI amount with this EMI calculator. These two calculators will tell you how much loan you can get under the house construction loan and how much will be your monthly EMI.

Moreover, application processing through our smartphone application ensure faster processing of your home loan.

Features of Aavas Home Construction Loan

  • We provide finance for self-construction of residential house.
  • The land may be free-hold or a plot allotted by Development Authority
  • Tranch-wise disbursement as per the stage of construction
  • Attractive interest rates
  • Tenure of up to
    • o 30 years for salaried customers (from government/ PSU/ Private sector) with more than ₹ 35,000/Month
    • o 25 years for other salaried customers
    • o 20 years for self-employed customers.
  • We are a perfect partner for your preferred property, which may be:
    • o Development Authority
    • o Freehold
    • o RERA Approved Flats
    • o Nagar Palika
    • o Gram Panchayat
  • Integrated branch network that facilitates loan servicing at a branch convenient to you.

To Get more details about the Documents Required for Salaried or Self employed person to take Land purchase and home construction loan Click Here

Some interesting facts on Home Construction Loan

  • Nearly 25.48 % applications of the total applications were for a construction loan.
  • In the last 30 days, the most active age group who were looking for a construction loan have an average of 41 years.
  • 23.12 % of construction loan applicants were women, who wanted to construct their home.
  • Jaipur has witnessed a notable hike in the number of people looking for a Home construction loan
  • Plot Purchase plus Home Construction Loan FAQs

    Can I get a home loan for land purchase?

    No. Home Loans are strictly meant for buying homes that are already built. For the purchase of land and for constructing plot + construction composite loan from Aavas.

    What is a plot and home construction loan?

    A plot plus construction loan is the amount borrowed to purchase a plot and build a house on the same plot. The loan amount is repaid in monthly installments.

    How to apply for plot Purchase and construction loan?

    The applicant must follow the following steps to apply for the land purchase loan.

    Step 1 The borrower must fill the application form

    Step 2- The borrower must submit the necessary documents, property documents of land, Age proof v Id proof, Residence proof, Income statement, Bank statement, Form 16

    Step 3- After successful submission of the documents, the loan amount is transferred to the borrower's bank account

    How does a home construction loan work when buying a plot?

    The construction loan borrowed from the institution can be used to purchase land, build a property on the land owned, or can be used to renovate the existing property.

    Are there any tax benefits on the land purchase and home construction loan?

    There is no tax benefits on the loan borrowed for land purchase. The tax benefit can only be availed when the borrower is going to construct a house on that particular land.

    What are the minimum and maximum tenure of loan for land purchase?

    The minimum tenure for a loan minimum 5 years which can exceed up to 30 years.

    Related Blogs

    Aavas Blog

    Everything You Need To Know About Home Construction Loans

    17-Jul-2021 |Home Construction Loan

    Everyone aspire to live in their own dream house. The experience will surely be more wonderful if one has planned to build their own house instead of buying a ready to move in. To fulfil these dreams and make you live this wonderful feeling, several housing finance companies offer home construction loans.

    Here’s a detailed guide that explains what a home construction loan is, the types of home construction loans, the process of getting one, and the advantages of taking a home construction loan.
    What is a Home Construction Loan?
    A Home Construction Loan is a type of Home Loan, which you get for constructing a house of your own instead of purchasing a ‘ready to move’ residential property. The loan amount would be disbursed in phases as per stage of construction. Further, you need to provide a detailed construction plan, an estimate from the architect, an approved map etc. to apply for a home construction loan.
    After the loan gets approved, the site under construction will be inspected by the lender or they may send a third party team of technicians for visiting and examine the same.
    What are the types of Home Construction loans?
    There are 2 types of Home Construction Loans
    1. Self-Construction Loan: You can opt for this loan if you have purchased a land/plot or if you already have a land/plot in your name and you need funds to construct a home.
    2. Plot Purchase and House Construction Loan: A borrower can also opt to purchase land and construct a house on the same. However, the borrower has to put in their contribution first.
    The borrower must follow the following steps to apply for the home construction loan.
    Step 1: The borrower needs to fill the application form first
    Step 2: The applicant must submit all the necessary documents like property documents, KYC, income documents, bank statement, Form 16 etc.
    Step 3: After successful submission and approval, the loan amount is then disbursed in tranches as per the construction stage to the borrower's bank account.


    • Good Credit Score: If the applicant’s credit score is high, then there are more chances to get the loan approved quickly and easily.
    • Keep Documents Ready: Applicant needs to arrange and organise all the relevant documents like KYC, income documents, property documents, an estimate from architect, detailed constructions plan, approved map etc. asked by the lender to avail of the hassle-free loan.
    • Apply for Home Construction Loan after checking the eligibility- The lender will examine the buyer’s eligibility based on his income and his repayment capacity. Before applying for a loan it is recommended to calculate your home construction loan eligibility and EMI with an online EMI Calculator first.

    Benefits of a Home Construction Loan?

    • If you believe in Vastu then getting your own house built on Vastu principles of design, layout, space arrangement, and spatial geometry would be a very good option.
    • You can also check quality factors while building a house by determining the structure design, ensuring safety features, looking for paint, plastering and other material quality etc.
    • You can build the house as per your budget like initially, you can build a single floor and later you can extend the construction.
    • You can get your house constructed at the place of your choice, like if you want to build the house near your office or business.


    To conclude, if you are looking for constructing a home or buying a plot plus constructing a house as per your requirement “home construction loan” is the loan for you.

    Aavas Blog

    Why Constructing a Home is a Better Option than Renting

    27-Mar-2021 |Home Construction Loan,Home Construction

    The satisfaction and comfort that one derives in living in one’s own house as compared to staying in rented accommodation are immense. In fact, there are instances of people, who, tired of shelling out monthly rents, apply for home construction loan to build their own houses. Some maintain that staying in a rented accommodation costs less, while some say that having one’s own house is the best way forward as one can live with freedom and without having to worry about paying monthly rent.

    Rent keeps on increasing and the rented house always has a threat of vacating. 

    Owning a home is the dream of every person, the only fly in the ointment being the fact that the sky-rocketing property prices in the recent past have made people take the easy way out of staying in rented accommodation, rather than buying a house. However, if you have decided to stay put in the city of your choice and want to have a dream house of your own, apply for house construction loan. At the same time, make sure you have the necessary funds for the down payment and stable future cash flows.

    There is no denying the fact that having your own home gives you that rare sense of security and happiness which staying in a rented accommodation can’t. Buying a house with a loan makes things easier as you mentally prepare yourself to pay the EMI over the long term. After your EMI is over, you can breathe easy knowing that you don’t have to pay any further money on your housing loan.  

    Experts are of the opinion that the best period of buying a house is at a young age; maybe, just after settling down in a secure job, or sort of settled in a business-owned or parental business because one doesn’t have to worry about the financial part. Managing the EMIs initially may be difficult, but after, say, five to ten years, when income goes up, it would be fairly easy to pay monthly EMIs. Moreover, there is a corresponding rise in property prices with each passing year.

    Those who happen to occupy a rented accommodation, count their blessings once the landlord extends the tenure of their stay through a legal agreement. But not all are lucky in this respect. It all depends on the whims and wishes of the landlords. Moreover, the rising rental prices cause anxiety among those who are not in a position to buy their own homes. However, there is good news for those in a mood to buy their new homes thanks to the availability of lower interest rates and the government subsidy for first-time buyers of affordable homes.

    Owning a house gives you the additional advantage of getting extra income through rentals or from paying guests. Those who happen to pay monthly rents in rented accommodation may find the expenses cheaper in the short run as compared to the EMI, but in the long run, you actually end up paying more. Needless to mention, there is no way you can recover the cost of your rent. As a homeowner, you can easily mortgage the property but a tenant cannot mortgage a rental property.

    Buying a house is a smart idea for many as there are tax benefits on the principal amount, the interest one pays, in addition to some more benefits that can accrue to you if you are a first-time buyer. There is no doubt that home construction loans are a unique way to reduce tax and own the house of your choice.

    One more advantage of owning a home is that it frees you from the annoying ritual of monthly rent payment because your mortgage payment each month turns out to be your investment for your own secure future. You can pay as much or as little as you like by going for a payment schedule that suits you from many mortgage options. Needless to say, a day will come when your house might be worth more than you paid for it. So, always work toward having your own house which is a golden goose for your future.

    For construction cases, in fact area of construction can also be restricted to suit our cash flows and as the cash flows increase over a period, he can extend the house. 



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