A Purchase + Construction Loan is a type of loan designed for individuals who plan to purchase a plot of land and construct a residential or commercial property on it. This loan provides financial assistance for both the purchase of the plot and the construction of the property, offering a convenient and comprehensive solution for your real estate needs.
1. Comprehensive Financing: This loan covers both the cost of purchasing the plot and the expenses related to the construction of the property. This eliminates the need to apply for separate loans for each purpose.
2. Secured Loan: A Purchase + Construction Loan is a secured loan, meaning the plot of land and the constructed property serve as collateral. This reduces the lender's risk and often results in lower interest rates compared to unsecured loans.
3. High Loan Amounts: Lenders typically offer high loan amounts based on the market value of the plot and the estimated construction cost. The loan amount can be up to 75-80% of the combined value.
4. Competitive Interest Rates: Due to the secured nature of the loan, Purchase + Construction Loans usually come with competitive interest rates, making it an affordable borrowing option.
5. Flexible Repayment Terms: Borrowers can choose repayment terms that suit their financial situation, with options ranging from 5 to 30 years, depending on the lender's policies.
• You must have a good credit history
• Nature of Employment: Salaried employee of a public or private organization, or Self-employed professional.
• You must be able to provide collateral, such as property or equipment
• Age: Minimum of 21 years at the time of application and Maximum of 65 years by the time of loan maturity.
• Nationality: Resident Indian
• Income : Minimum monthly income based on the location and type of employment.
•Credit Score: 750 or above, with a good credit history.
• Work Experience: Overall work experience: At least 1 year and In current organization: At least 6 months
At Fintech ,documentation for purchase plus construction applications involves basic KYC documents(PAN, address proof) bank statements and Personal documents. Here is a
list for quick references
SALARIED | SELF EMPLOYED |
PAY SLIP LAST 3 MONTHS | GST CERTIFICATE |
BANK STATEMENT LAST 6 MONTH | GST 3B RETURNS LAST ONE YEAR |
EMPOLYEE ID CARD | ITR LAST 3 YEARS |
FROM 16 (LAST 2 YEAR). | BANK STATEMENT LAST ONE YEAR TO TILL DATE AND MSME/UDHAYAM |
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