HDFC Home Loan For Construction

Many individuals aspire to own a home at some stage in their lives. Thus, the HDFC construction loan presents an appealing financing option for those looking to build a residential house. This ideally allows you to secure a loan amount of up to 100% of the construction value, subject to a maximum of 90% of the market value.

Although it bears similarities to a traditional home loan, it differs in terms of required documentation, tenure, loan quantum, and interest rates. Hence, we cover topics such as HDFC construction loan interest rate, eligibility criteria, required documents, applicable fees, relevant features, and other pertinent details. Let’s scroll down to learn more about this plot construction composite loan HDFC.

HDFC Construction Loan Interest Rates

Here are the prevailing HDFC construction loan interest rates and other key parameters of an HDFC house construction loan:

Noun Parameter
Interest rate 8.75% to 9.40% p.a
Loan Amount 90% of the Loan-to-Value (LTV) ratio
Processing fees Up to 1.50% of the loan amount or Rs. 4500, whichever is higher.
Loan Tenure 15 years

HDFC Construction Loan Fees and Charges

Let's examine the fees and charges associated with the HDFC home construction loan:

Fee/Charge Amount
Processing Fee Up to 1.50% of the loan amount or Rs. 4500, whichever is higher 
Prepayment charges  2% of the prepayment amount 
Late payment charges Up to 18% p.a. on overdue instalment amounts
Interest rate conversion fees  Up to 0.50% of the Principal Outstanding amount
Cheque bounce charges Rs. 300 per incidence
Repayment mode swap charges Rs 500
Stamp duty & other statutory charges As applicable in the respective States.

HDFC Construction Loan Eligibility Criteria for Salaried Applicants

The eligibility criteria for salaried individuals applying for HDFC construction loans are as follows:

  • You must be aged between 21 and 65 years old. 
  • You must have a minimum salary of  Rs 10,000 per month.
  • You must have a positive credit score and repayment history.
  • You must be an Indian citizen.

HDFC Construction Loan Eligibility Criteria for Self-Employed Applicants

The eligibility criteria for self-employed individuals applying for HDFC house construction loans are as follows:

  • You must be aged between 21 and 65 years old. 
  • You must have a minimum salary of Rs 2 lakh per annum.
  • You must have a positive credit score and repayment history.
  • You must be an Indian citizen.

HDFC Construction Loan Documents Required for Salaried Applicants

The following are the required documents for HDFC home construction loans, applicable to salaried employees:

  • Proof of Identity: PAN Card (mandatory), Aadhaar Card, Driving licence, or Passport.  
  • Proof of Address: Utility Bills, Voter ID Card, or Ration Card.
  • Proof of Income: Salary slips for the past three months, bank statements for the last six months, and the latest Form-16 and income tax returns.
  • Proof of Property: Non-encumbrance certificate on the property, title deeds of the plot, a copy of the plans duly approved by the local authorities, and a construction estimate prepared by an architect/civil engineer.

HDFC Construction Loan Documents Required for Self-Employed Applicants

The following are the required documents for HDFC construction loans, applicable to self-employed individuals:

  • Proof of Identity: PAN Card (mandatory), Aadhaar Card, Driving licence, or Passport.  
  • Proof of Address: Utility Bills, Voter ID Card, or Ration Card.
  • Proof of Income: Balance sheets and profit & loss account statements for the past two years, bank statements covering the last 12 months, and income tax returns with income computation for at least the last two assessment years.
  • Proof of Property: Non-encumbrance certificate on the property, title deeds of the plot, a copy of the plans duly approved by the local authorities, and a construction estimate prepared by an architect/civil engineer.

Features of HDFC Construction Loans

Let's take a look at the features of a plot construction composite loan in HDFC Bank:

  • Applicable for both personal use and investment purposes.
  • Secure 100% of the construction value.
  • Competitive interest rates start at just 8.75% per annum.
  • High Loan-to-Value (LTV) ratio, allowing up to 90% of the market value.
  • Flexible repayment tenure ranging from 5 to 15 years.
  • Eligible for tax benefits on interest payments, maximum of Rs 2 lakhs.
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