Indian Bank Home Construction Loan

Starting a construction or renovation project is an exciting enterprise, but it is also fraught with financial challenges. This is where the Construction Loan from Indian Bank excels, providing a fantastic chance to realise your dream. This loan, which is a hallmark product from one of the top public sector banks in India, is available for both residential and commercial real estate projects. It offers appealing interest rates and adaptable repayment plans, making it a unique choice for both home builders and developers. By reducing the financial complexity of building projects, the loan frees borrowers from the burden of worrying about how they will pay for their dream projects. Your financial solution for building a new house or remodelling a business is an Indian Bank construction loan.

Features of Indian Bank Construction Loan

Here is a snapshot table of some of the features of the Indian Bank Construction Loan:

Indian Bank Construction Loan Interest Rates

Indian Bank Construction Loan Interest Rates are linked to the Repo Linked Lending Rate (RLLR) plus a spread, which may vary depending on the type and purpose of the loan. Here is a tabular representation of the interest rates for different loan schemes as of February 2024:

All the charges are subject to change without further notice.

Indian Bank Construction Loan Fees and Charges

Indian Bank Construction Loan Fees and Charges are as follows:

• Processing Fee: 0.25% of the loan amount, subject to a minimum of Rs. 1,000 and a maximum of Rs. 20,000
• Prepayment Charges: Nil for floating rate loans and 2% for fixed rate loans
• Documentation Charges: Rs. 500 per lakh of loan amount, subject to a minimum of Rs. 5,000 and a maximum of Rs. 25,000
• Inspection Charges: Rs. 500 per visit for residential property and Rs. 1,000 per visit for commercial property
• Legal Opinion Charges: As per actuals, depending on the complexity of the case
• Valuation Charges: As per actuals, depending on the size and location of the property
• Stamp Duty Charges: As per the state laws, depending on the loan amount and the property value
• GST: 18% on all the applicable charges

All the charges are subject to change without further notice.

Eligibility Criteria for Salaried and Self employed

To be eligible for Indian Bank Construction Loan, you need to meet the following criteria:

For salaried applicants

• You should be a resident Indian citizen
• You should be between 18 and 60 years of age
• You should have a regular and stable source of income
• You should have a minimum net monthly income of Rs. 15,000
• You should have a good credit score and repayment history

For self-employed applicants

• You should be a resident Indian citizen
• You should be between 18 and 65 years of age
• You should have a regular and stable source of income from your business or profession
• You should have a minimum net annual income of Rs. 1.5 lakh
• You should have a good credit score and repayment history

Documents Required for Salaried and Self Employed

To apply for Indian Bank Construction Loan, you need to submit the following documents:

For salaried applicants

• Application form
• passport size photographs
• Identity proof 
• Address proof 
• Income proof 
• Property documents 

For self-employed applicants

• Application form with passport size photographs
• Identity proof 
• Address proof
• Income proof 
• Business proof such as registration certificate, GST certificate.
• Property documents

Features of Indian Bank Construction Loans

Some of the benefits of Indian Bank Construction Loan are:

• You can avail a high loan amount to meet your construction or renovation needs
• You can enjoy a low interest rate that is linked to the market rate
• You can repay the loan in easy EMIs over a long tenure
• You can avail a moratorium period of up to 24 months during the construction or renovation period
• You can get tax benefits on the interest and principal repayment under Section 24 and Section 80C of the Income Tax Act, 1961