House Loan (1)

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House Loan
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How to get a Home Loan to construct your own House
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• Documents to be attached with application In
  addition to the regular know your customer
  (KYC) and income documents,
• to avail of a house loan for constructing a house
  on a plot of land owned by you, you will have to
  provide the prospective lender with all the
  relevant documents that establish your title and
  ownership of the plot of the land.
• In addition to the documents of the plot, you
  will have to submit the plan and layout of the
  proposed house, duly approved by the local
  municipal authority or gram panchayat.
• You will also have to submit an estimate of the
  cost of construction, which has been certified by
  a civil engineer or an architect. 

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• Margin money As with any other home loan, the
  borrower will have to contribute the margin money
  towards construction of the house, depending on
  the amount of home loan that is requested.
• While calculating your contribution, the cost of
  the plot is also taken into account, in case the
  same has been purchased recently.
• However, the value/cost of the plot is not taken
  into account while computing your contribution.
• in case the same has been inherited by your or is
  received as a gift or if it was purchased long
  back.
•  

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• Disbursement of the loan The disbursement of the
  construction loan is done in parts, and the money
  is released, based on the progress of the
  construction, similar to the process followed
  when an under-construction flat is booked with a
  developer.
• However, the lender will not disburse any money
  till you bring in your own contribution as agreed
  and provide proof of the same.
• For availing disbursements from the bank, you
  will have to submit photographs of the house and
  certificates from an architect or civil engineer
  about the stage of completion of the house.
• The lender may rely on the certificate and
  photographs submitted by you, or it may decide to
  depute its own technical person to verify the
  same. So, if the construction is completed
  quickly, the disbursement of money by the lender
  will also be faster.
• Source https//housing.com/news/get-home-loan-con
  struct-house/

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Click to know more on House Loan https//www.hdfc
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