EVERYTHING YOU WANTED TO KNOW ABOUT A HOME CONSTRUCTION LOAN

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Top 3 reasons people buy their own home:

1. More expensive to buy land and construct your own home in a large city: In the more developed cities across India, the land is fast becoming expensive to afford for the middle class. It is even more expensive to buy a plot of land, construct the home, and also manage all the amenities for a standalone home such as power backup, security, etc. Hence Apartments find favor in metro and Tier I cities across India.


2. Difficult to manage construction while working in a job or running a business: In the modern lifestyle, it is difficult to find the time to manage an ongoing construction project. Even if you have a contractor doing the construction, the homeowner has to visit the site regularly to ensure quality and speed of work.


3. It’s harder to manage and maintain a standalone home: If you construct your own home, it will require much more effort to manage and maintain the home as it gets older as you have to manage everything, including all the support services such as electricity, plumbing, etc. In an apartment, the common services are taken care of by the society office, and you only have to manage things inside your apartment.


Top 3 reasons people construct their own home:


1. The ownership of your home is complete and independent: In India, it is considered more secure and prestigious to own both, the land as well as the house constructed on it. When the house grows old, one can still reconstruct it or sell the land at value. In apartment complexes, the ownership of the land is shared by all residents.


2. The quality of construction is in your control: When constructing your own house, you get to choose every material, every fitting, every finish that goes into making it. Such construction also is also durable and lasts generations.


3. The home can be built over a period of time to accommodate your financial and personal requirements: Most people have a limited budget when constructing a house. But you can continue the construction in parts over the years adding more floors, more rooms, and amenities, as your family’s needs grow. If you have decided to construct your own house then you may want to understand a little more about a Home Construction Loan.


What is a Home Construction Loan?

A home construction loan is a home loan given to someone who wants to build their own house and not purchase an already built home. In a construction loan, as the construction work progresses, the loan is released in parts to meet the spending needs of the homeowner.

Advantages of a home construction loan:


➔ No need to pay interest on the entire amount from day 1

◆ A home construction loan is disbursed as per the construction stage of your house,hence, you need to pay interest only on the amount that has been disbursed to you.

➔ Authority to rebuild, renovate, or extend your home any time in the future

◆ If you think that there is a need to renovate your house or add a new floor or a room,you can easily take a home renovation loan and make changes to your house according to your requirements.


To increase your chances of getting a home construction loan approved faster they must:

➔ Maintain a good credit score

➔ Choose a reputed contractor for their project

➔ Should be organized with their property documents and construction plan

If you wish to apply for a loan from an institute like Shubham Housing Finance then you can check


your eligibility by keeping in mind the following parameters:

● Applicant should be more than 21 years of age but, not more than 65 years of age at the

time maturity

● Applicant should have a bank account

● Applicant should reside in a city where Shubham’s branch office is located

● No guarantor is required

● All the owners of the property being financed and all individuals whose income has been considered for the loan have to be the co-applicants to the loan.


Shubham Housing Finance’s easy-to-use Shubham Home Loan Interest Rate Calculator or the Shubham Home Loan EMI Calculator can be used to get an estimate of your expenses and to plan your finances. To be eligible for a Shubham Housing Finance home loan, one has to meet a few basic home loan eligibility criteria which might differ depending on whether you are a salaried individual or self-employed.


If you want to know more about this or check which option will work best for you, give us a call on our Toll-Free Number 1800-258-222-5, Whatsapp us on 807 624 1122, or email us at customercare@shubham.co. You can also locate your nearest Shubham Housing branch using the Shubham branch locator.