Thinking of buying a property under construction? Well, it’s a wise choice, given how expensive ready-to-move-in and resale properties are compared to an under-construction property.

Nevertheless, an under-construction house is still a considerable expense. You’ll still require a loan to finance the purchase. Fortunately, there’s a world of lenders out there that offer convenient and affordable home loans for under-construction properties. All you need to do is meet their eligibility conditions and furnish the requested paperwork.

To help you save the hassle and time, here’s a list of documents you should keep ready when applying for a deconstruction property loan.

List of documents required for under-construction property loan

Document verification is an integral step in the home loan application process. Not presenting the paperwork on time can cause unnecessary delays.

Here’s the complete list of documents required to make your application process go a lot smoother:

  • Khata Certificate and Khata extract
  • Sale deed
  • KYC (Know Your Customer) documents for income proof
  • No Objection Certificate (NOC) issued by the builder on their letterhead
  • Agreement with the builder, duly registered and stamped
  • Letter from architect/builder indicating the project’s progress

If the project isn’t registered yet, you must ask the builder to provide you with the following documents:

  • An original copy of ‘money receipt’ issued by the Sub-Registrar
  • A copy of the Own Contribution Amount Proof
  • A true copy of the agreement with the builder
  • Acknowledged copy of the authority letter, addressed to the Sub-Registrar
  • A copy of the authority letter acknowledged by the builder

While seeking the documents mentioned above, you should also ask the builder if the ongoing project has a tie-up with any lenders. If yes, you can directly obtain all the verification documents from the lender itself. However, you don’t need to choose the same lender for your housing loan.

Additional Read: Home Loan Tax Benefits for Under Construction Property

Things to keep in mind before applying for an under-construction housing loan

While looking for a new home, it’s easier to get swayed by flashy advertisements and brochures. However, many builders have a track record of over-promising and under-delivering, resulting in a bad investment. So, before you sign a deal or apply for a loan, here are a few boxes you must check:

  • You, as a borrower, must visit the project site and physically inspect the quality and progress of the construction
  • Evaluate the track record of the builder
  • Make sure that the flat layouts and the carpet area match with the information provided on the property papers
  • Conduct a thorough valuation of the property and assess its future price appreciation
  • Make sure that the borrower has all the necessary property certificates

Additional Read: How to Calculate GST on Under-Construction Property

To sum up

By keeping all the documents ready, you can secure a housing loan in a speedy and hassle-free manner. If you’re searching for a reliable lender, turn to Tata Capital! Our under-construction property loan benefits include flexible repayments, attractive interest rates, and a seamless application and documentation process.

Start your loan application process today by checking your home loan eligibility here.

0 CommentsClose Comments

Leave a comment

To know more about Terms & Conditions, click here.


This communication is provided for general information only, without regard to any specific objectives, financial situations and needs of any particular person. This communication does not constitute an offer or invitation to avail services and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Nothing in this communication should be considered as an investment or financial advice, nor should this communication be construed as an advice to buy or sell or as a solicitation to buy or sell the securities if any referred to herein. The intent of this communication is not recommendatory in nature. This communication is being supplied to you solely for your information and the same should not be reproduced, redistributed or passed on, directly or indirectly, to any other person, or published or copied, in whole or in part, for any purpose whatsoever.