This loan give borrower a freedom to build a building on empty plot and based on construction level borrower can request for loan. This will get disbursed accordingly.
In such case the interest is charged only on the money utilized and not on the entire credit amount.
This loan is applicable for both individual consumers as well as for builders.
Based on loan type, repayment tenure varies. For loan availed under telescopic option, maximum tenure can go up to 30 years.
There are two main stream segments under HDFC construction loan. One is an adjustable rates loan where the loan rates linked to HDFC retail prime lending rate. Other variant is a trufixed home loan rates. Here for initial 2 3 years rates will be fixed and then will automatically convert into adjustable rates for the remaining tenure.
These home loan building projects comes in variety of repayment options also.
The loan is tailored especially for real estate builders and developers. It offers builders a good finance cost to meet project costing against the return from the project sale. It offers loan with maximum tenure of up to 60 years.
The loans require collateral. Collateral can be provided in the form of hypothecation of the project receivables or through the mortgage of the property.
Loan amounts can go up to Rs 100 crore. However, the amount offered at that time of availing loan will depend on construction cost. It is applicable for salaried, solo proprietorship, partnership, self employed etc.
Eligibility of loan will depend on borrower. Itr can be availed for residential as well as commercial construction. For residential properties loan cover 30% of the cost whereas for commercial construction it will be 65% of the project.