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Tata Capital > Blog > Construction Loan > Loan for Plot Purchase and Home Construction

Construction Loan

Loan for Plot Purchase and Home Construction

Loan for Plot Purchase and Home Construction

Do you dream about owning a house tailored to your preferences? If so, building a house might be something to consider. Constructing your own house gives you the freedom to fully customise it to meet your specific needs and match your aesthetics.

However, financing could be a factor that keeps your dream of building and owning a house from coming true. With plot plus construction loans, this obstacle is no longer insurmountable. These specialised loans are designed to support both land acquisition and construction costs, bridging the financial gap for aspiring homeowners.

Dive into this article to understand how a loan for plot purchase and construction works, its advantages, eligibility criteria, and the documents required. 

What is a plot plus construction loan?

A plot plus construction loan is a financial solution for those dreaming of homeownership. It is a dual-purpose versatile loan that covers purchasing a residential property and funding the subsequent home building. The coverage of this loan extends beyond direct plot purchase to resale acquisitions and balance transfer.

Advantages of a plot plus construction loan

#1. Versatile and comprehensive coverage

The plot plus construction loans cover all aspects of your financial needs related to building your house. It includes both the purchase of the plot and construction costs. Additionally, its versatility caters to all scenarios, whether purchasing a plot directly, through resale, or upgrading an existing house.

#2. Competitive interest rates and flexible repayment terms

The plot plus construction loan interest rate is competitive, reducing your financial burden. The plot plus construction loan terms and conditions allow for flexible repayment options. The repayment term can extend up to 30 years, meaning you can choose a tenure that aligns with your financial capabilities.

#3. Nationwide access

There is no geographic restriction to limit your access to the loan for plot purchase and construction. The loan gives you the flexibility to purchase land anywhere in India. With this loan, you can build your home in your dream location.

#4. Easy eligibility and quick approvals

You can avail yourself of a plot plus purchase loan by meeting simple eligibility criteria. These loans also come with quick processing and approvals, giving you immediate access to funds.

#5. Tax and financial incentives

The loan for plot purchase and construction comes with financial perks. You can avail of deductions under the Income Tax Act 1961. You also have the advantage of facilities such as balance transfers, which ease your EMI burden to help you navigate your finances.

Eligibility criteria for loan for plot purchase and home construction

- You must be between 24 and 65 years of age to be eligible for a loan for plot purchase.

- You must have a minimum salary of Rs. 30000 monthly and two years of work experience.

- Self-employed applicants must have a three-year business history, and NRIs need three years of work experience.

Documents required for loan for plot purchase and home construction

- Age, Photo, and Address Proof: Passport, PAN Card, Driver’s License, Aadhar Card, utility bills or property tax documents

- Income Proof: Bank statements, salary slips, and yearly increment documents.

- Existing Loan Details

To sum up

The journey from dream to reality when building your dream home needs a solid financial backbone. A comprehensive plot plus construction loan can fund every stage of your journey.

Tata Capital offers plot purchase and construction loans that blend competitive interest rates, flexible repayment tenures, and flexible coverage. Our experts provide stellar service and support to help you find the perfect home loan that meets your requirements.

For more information and to start your home loan application process, visit the Tata Capital website today!


1. How does a plot plus construction loan work?

A plot construction loan is a dual-purpose loan that finances the purchase of a plot and the construction of a house on it.

2. Can we get the loan on a plot and build a house?

Yes, you can use the loan to build a house. You can also use it for renovation and expansion purposes.

3. What is the maximum tenure of a plot loan?

The maximum tenure of a plot plus construction loan is 30 years. You can select a tenure that meets your financial needs.

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