ICICI Home Loan for Construction

Dreaming of building your own home? The ICICI Construction Loan is your go-to solution! This loan empowers you to turn your architectural dream into a beautiful reality, offering attractive interest rates, flexible features, and a streamlined process.

Construction loans are specifically designed to finance the construction of your property, covering the cost of materials, labor, and other construction-related expenses. You can use the borrowed amount to:

  • Build a new house on an existing or new land
  • Extend or renovate your current home

Once the borrower has obtained a plot loan and purchased the land, they may be eligible to apply for a construction loan to build the house on the purchased land. The construction loan would be used to pay for the cost of building the house and repaid over a shorter period than a plot loan.

Learn about the ICICI construction loan process, documents required, processing fees, and other charges below.

ICICI Construction Loan Interest Rates

Banks and financial institutions offer interest rates based on borrowed amount, interest rates, and repayment history. Similarly, the interest rates charged by ICICI home construction loans start from 9.00% p.a. The information below highlights the key parameters before applying for an ICICI construction loan.

Interest rate 9.00% onwards
Loan Amount As per the applicant's eligibility
Loan-to-Value Ratio (LTV Ratio) 70% of purchased land along with home construction charges
Loan Tenure Up to 20 years

ICICI Construction Loan Fees and Charges

Take a quick look at the fees and charges of ICICI construction home loan:

Loan Processing Fee: 0.50-2%% of the loan amount, exclusive of taxes.
Prepayment Charges:
  • For Floating Rates: No pre-payment charges apply to ICICI home construction loans. 
  • For Fixed Rates: 2% on the prepaid borrowed amount.
Late Payment Charges: 2% of the construction loan amount per month. 
Repayment Swap Fee: INR 500
Cheque Bounce Charges INR 500
CIBIL Score: A credit score above 750 is considered good to qualify for an ICICI construction loan. 
Administrative Fee INR 5,000

ICICI Construction Loan Eligibility Criteria for Salaried Applicants

Checking the eligibility beforehand is vital as it makes the application process smoother. Below are the factors you should consider before applying for ICICI construction loans.

  • Age Qualification - All salaried candidates between 20-65 years of age are eligible for an ICICI construction loan. 
  • Minimum Salary - He/She should have a monthly income of at least 25000. 
  • Nationality - He/She must hold Indian citizenship. 

Please note: ICICI bank provides the option to check the specific eligibility of applicants by simply putting information like monthly income, ongoing EMIs, interest rate, desired tenure, and more on their official website. 

ICICI Construction Loan Eligibility Criteria for Self-Employed Applicants

Several factors are considered by financial institutions when determining a home loan for an applicant. Here’s a detailed overview of the basic elements for Self-Employed applicants considered by ICICI home construction loan:

  • Age Qualification - All salaried candidates between 20-65 years of age are eligible for an ICICI construction loan. 
  • Income - Stable track of financial statements
  • Nationality - He/She must hold Indian citizenship. 

ICICI Construction Loan Documents Required for Salaried Applicants

Documents required to qualify for ICICI construction loan for salaried employees include the following:

  • Application form 
  • 3 Passport size photograph
  • Identity Proofs
  • Residence proofs
  • Age Proofs
  • Processing fee cheque
  • Copy of financial statements of past 6 months
  • A copy of salary slips for the past 3 months
  • Form 16 / Income Tax Returns

ICICI Construction Loan Documents Required for Self-Employed Applicants

Documents required to qualify for ICICI construction loan for salaried employees include the following:

  • Completely filled Application form 
  • 3 Passport size photograph
  • Identity Proofs
  • Residence proofs
  • Age Proofs
  • Processing fee cheque
  • The last 6 months' financial records
  • Form 16 / Income Tax Returns
  • Business existence proof
  • Education qualification certificate
  • Income Tax Returns (for last 3 years) with Income computation
  • Audited Balance Sheet and Profit & Loss Account of last 3 years

Features of ICICI Construction Loans

Below we have highlighted some significant features of ICICI construction loan:

  • Flexible loan amount: Up to ₹2.5 crore
  • Repayment tenure: Up to 20 years
  • Application procedure: Easy online application and tracking
  • Adaptable nature: Attractive balance transfer options
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