What is a home construction loan and how does it work?

It is a type of home loan taken for self-construction of a residential-house property on vacant land or adding another level to an existing building.The loan amount is disbursed in several instalments, which is linked to the completion of various stages of house construction.

How do I repay a home construction loan?

You can repay a home construction loan through EMI which is deducted from your bank account through ECS or by providing post-dated cheques.

What are the types of rate of home construction loan interest offered by SMFG Grihashakti?

We offer affordable home construction loan interest rates. The interest rate is determined based on the borrower’s credit score and repayment capacity.

Please call our toll free customer helpline 1800 102 1003 if you have any queries or face any issue on our website. We regret any inconvenience caused.

Dismiss

Thank you!
Our representative will contact you shortly

Error occurred while submitting data. Please try again after some time.

Fill in the details below

We will call you back as soon as possible

Generate OTP

I hereby authorize SMFG Grihashakti and its affiliates to call and/or send an SMS to me in relation to any of their products.

Home Construction Loans

Apply Now

Home Construction Loans

Easy financing to build your dream home

Getting your dream home constructed all by yourself is a unique experience. A home construction loan can help you finance the complete process. Starting from planning structural design to execution, constructing a new home from scratch requires effortless planning, skilled masons and engineers and a constant flow of funds to cover the diverse expenditures.

SMFG Grihashakti Home Construction Loan is designed to cover the unique funding requirement for home construction. The home building loan is disbursed in the form of instalments that are linked to various stages of construction; therefore, you don't have to take the hassle of managing cash and can focus on the construction work.

Features of Home Loan Construction
Benefits of Taking a Home Construction Loan
Home Construction Loan Interest Rates
Documents Required for Home Construction Loan
Home Construction Loan Eligibility Criteria
FAQs

Apply Now Apply Now

Features of Home Loan Construction

Rapid approval and quick disbursal:

You can apply online and following the approval of your home loan for construction application, disbursal of funds will be initiated within 72 hours.

Easier to manage EMIs

We offer affordable interest rates for construction financing. This means your home loan for construction is more affordable and easy on your pocket. You can also determine the EMI amount using the home loan EMI calculator present on the website.

Flexible tenure

The new home construction loan has a maximum tenure of 30 years. And, by opting for a longer tenure, you can reduce the EMI amount for the construction mortgage. This will also help you to manage your finances in a better way and maintain your standard of living.

Hassle-free repayment schedule

You can pay your home construction loan EMI through ECS (electronic clearing system) or by giving post-dated cheques.

Generous tax benefits

You can avail of all the tax benefits on the principal and interest component of the loan for home construction as listed under Sec 24 of the Income Tax Act. Further, you may also be eligible for the benefits provided under the Government of India sponsored PMAY-CLSS (subject to certain criteria).

Benefits of Taking a Home Construction Loan

Here are a few reasons why you should consider construction funding solutions at SMFG Grihashakti:

Easy financing option: Self-home construction requires quick access to funds to make timely payments to vendors and labourers. Under the home loan for construction facility, you can apply for a higher amount that helps to meet various kinds of expenses easily.

Funds are available quickly: The home construction loan has a quick and simple approval process and the first instalment or subsequent instalment is disbursed within 72 hours of placing a request, which helps you to keep the work going, without missing deadlines.

Flexible repayment tenor: Based on financial capability and obligations, you can fix the convenient construction-to-permanent loan repayment tenure to reduce the monetary burden and maintain the standard of living.

Home Construction Loan Interest Rate

When considering a home loan for construction, it's crucial to understand the interest rate structure, as it greatly influences the total cost of borrowing. The interest rate for a home-building loan is determined based on several factors, including your credit score, income stability, and the loan amount requested. The interest rates can be either fixed or floating. SMFG Grihashakti offers floating rates of interest on home loans, linked to the Retail Prime Lending Rate. Our team of financial experts can guide you through the intricacies of these rates, ensuring you make an informed decision that balances affordability with your dream home aspirations.

Our home construction loan interest rates are affordable so that you can build your dream home easily. You can use our home loan calculator to estimate your monthly EMI and select an appropriate tenure so that the EMI is affordable and doesn’t strain your finances.

Documents required for Home Construction Loan

The following are the documents required for our homebuilding finance loan:

Type of Document	Salaried	Self-employed
Proof Of Identity	PAN Card Voters ID Driving License Employee Card	PAN Card Voters ID Driving License
Proof Of Income	Last 3 months’ salary slips 2 years’ Form 16 6 months’ bank statement with salary credits	Last 2 years’ ITR with computation CA audited Financial wherever applicable 6 months primary bank statement
Proof of Residence	Aadhaar Card* Latest Electricity bill/piped gas monthly bill Ration Card Property Tax/Water Bill	Aadhaar Card* Latest Electricity bill/piped gas monthly bill Ration Card Property Tax/Water Bill

Type of Document

Salaried

Self-employed

Proof Of Identity

PAN Card
Voters ID
Driving License
Employee Card

PAN Card
Voters ID
Driving License

Proof Of Income

Last 3 months’ salary slips
2 years’ Form 16
6 months’ bank statement with salary credits

Last 2 years’ ITR with computation
CA audited Financial wherever applicable
6 months primary bank statement

Proof of Residence

Aadhaar Card*
Latest Electricity bill/piped gas monthly bill
Ration Card
Property Tax/Water Bill

Aadhaar Card*
Latest Electricity bill/piped gas monthly bill
Ration Card
Property Tax/Water Bill

Documents pertaining to the property you wish to construct will also be requested.

*Terms and conditions apply. Please note that the Aadhaar card copy will need to be masked as per regulatory requirements. Depending on the applicant's profile & requirements as well as SMFG Grihashakti's policy at the time of loan application, additional documentation may be requested.

Home Construction Loan eligibility criteria

SMFG Grihashakti loan for house construction eligibility criteria include:

For salaried	For self-employed
The applicant should be employed in an MNC or government organization or publicly listed company or privately-held or partnership or proprietorship firms.	Self-employed applicants include individual businessmen, sole-proprietorship, professionals (doctors, CA, architecture), partnership firms, private limited, closely-held and unlisted companies.

Quick Links

Home Loan

Home Loan EMI Calculator

Home Loan Eligibility Calculator

Home Loan Interest Rates

Articles

knowledge-center

HOME CONSTRUCTION

GOVERNMENT GIVES MAJOR BOOST TO HOUSING AND HOME LOANS IN INDIA

There has been a steady offtake in the affordable housing segment due to government’s various incentives and efforts to stimulate the industry. Our honourable Prime Minister Narendra Modi has given a kick-start ...

Know More

HOME CONSTRUCTION

OWN A HOME WITH PRADHAN MANTRI AWAS YOJANA

The country’s 40 per cent population lives in cities and it is the responsibility of the government to uplift their standards of living. The country is estimated to have a shortage of nearly 20 million housing units needed by the rural...

Know More

HOME CONSTRUCTION

PRADHAN MANTRI AWAS YOJANA - CREDIT LINKED SUBSIDY SCHEME

The country is estimated to have a shortage of nearly 20 million housing units needed by the rural and urban poor, at far lower price points of ₹5-15 lakh. ...

Government of India is continuously working to ensure this dream come true for all home seekers in the country.

Know More

HOME CONSTRUCTION

10 TIPS TO MAKE HOME-BUYING EXPERIENCE, LESS OVERWHELMING!

Thinking of buying your first home? Then you must be someone who may have spent countless hours researching online or discussing about it with your friends, family, co-workers, maid and even your cab driver.

Know More

Happy Owners

Happy Homes

Mr. & Mrs. Vijaya Bhaskar Besta, Secunderabad

Mr. & Mrs. Chandrashekhar Shashtrimath, Karnataka

Mr. & Mrs. Kaithepalli Harishkumar, Vishakhapatnam

Mr. &Mrs. Rakoti Simhachala, Vishakhapatnam

“Owning a home brings in a sense of satisfaction and pride. The representative from SMFG Grihashakti has delivered good service and made our walkthrough in loan process easy. My favourite part in the entire home is the living room, which I have decorated well with special care.”

Mr. & Mrs. Vijaya Bhaskar Besta, Secunderabad

“Nothing compares to the happiness, which you get on moving to a home of your own. We are thankful to SMFG Grihashakti for helping us to achieve this happiness – they delivered excellent services in all aspects. Ever since we have moved to our home, our business has been booming!”

Pujan N. Maniar Family, Ahmedabad

“We are really happy to shift to our own place. Thanks to SMFG Grihashakti team, who helped us with their good service. The new home is very lucky for us because after we shifted here, I started my own business.”

Mr. & Mrs. Chandrashekhar Shashtrimath, Karnataka

“Having a house of your own gives you a sense of security and fulfilment. Kudos to the SMFG Grihashakti team – they are very prompt in their services! Our home is very special to us as we bond together as a family and also spend quality time with friends.”

Rupam Das Family, Kolkata

“We were looking for a home of happiness and peace. Thanks to the SMFG Grihashakti team, who helped us to realise this dream of ours. Our home has been very lucky for us – ever since we have shifted to our new home, prosperity followed!”

Mr. & Mrs. Kaithepalli Harishkumar, Vishakhapatnam

“I was very excited when I moved to my first home. Along with purchase of my new home, I also needed some funds to renovate my home. SMFG Grihashakti has been very cooperative and made my loan process very smooth. I love the balcony of my house, where I see birds chirping every morning."

Mr. R Sarvanakumar, Chennai

“Our new house is very special to me as it was the first house after our daughter was born. With SMFG Grihashakti we completed the loan process very smoothly. I love the hall of my house, where I can watch my daughter play.”

N. Durga family, Chennai

“The best part of our new home is its locality! Situated near a children’s park, now our children get to play during evenings. Service from SMFG Grihashakti has been wonderful with speedy and hassle-free loan process.”

P. Vasanthakumari family, Chennai

“Having a home is a special feeling and we experienced this when we moved from our rented accommodation to our own home. We feel fortunate to come across Grihashakti, who made the entire loan journey so simple and fast. My favourite place in the home is the living room, where I can relax with my wife after a day’s work."

Mr. &Mrs. Rakoti Simhachala, Vishakhapatnam

“It was a great feeling to own my first home. I am thankful to SMFG Grihashakti for their assistance throughout the loan process. Now my home being closer to my workplace, I can spend a quality time with my family”

Mr.Hemant Chandramani, Rajkot

“Staying in a home of your own has its own comforts. And if it is your first home, the feeling becomes more special. Thanks to SMFG Grihashakti as they helped us to realise our dream. The entire home is very special to us as we build sweet memories every day.”

Y. Sai Kumari Family, Vishakhapatnam

“A home of your own makes you feel independent. My mother was so happy when I shifted her to my own home. SMFG Grihashakti has been really helpful in making the entire loan process smooth and hassle-free. The favourite place at my home is the living room where I can spend quality time with my mother.”

Ms.Reema Chandiramani, Bhopal

Our home being the first home of our own is very special to me. It has also been a symbol of security for us. SMFG Grihashakti has been really quick in their processes and helped us through the entire loan process. Every corner of our home reflects a part of us – happiness and peace!"

Mr. & Mrs. Dinesh Sharman, Bhopal

I really feel proud to own my first home. I am thankful to Grihashakti, as the employees were so cooperative that I didn’t have to visit the branch repeatedly. My favourite in the home is balcony, from where I can see the vast sky."

Ms.Anju Saini, Kishangarh

Disclaimer: *Please note that loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms and disbursal process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you are an existing customer and wish to foreclose your loan, please note that foreclosure terms and charges will be applicable as per our policy at the time of loan foreclosure.