Home Construction Loan

Construction Loan

If you already own a plot of land and you are planning to construct a house therein, our construction loan product is best suited for you needs.Construction of your own home gives you and your family a great sense of pride and satisfaction.

1. Product Information

The product features are as follows :

  • Maximum Loan Amount 50 Lacs.
  • Maximum Tenure 240 months.
  • Interest Rate
    PLR – 17.67 %
    Segment Interest Rate PLR Less Spread
    Salaried 12.5% - 16.5 % Less 5.17% – Less 1.17%
    Self – Employed 13.5% - 17.5 % Less 4.17% – Less 0.17%
  • Processing Fees
    Initial Non-refundable Processing Fee Rs 3,000 plus applicable taxes and/ or other statutory levies This is a onetime non-refundable fee, and is collected by Vastu HFC for the purpose of appraising the application for the Loan and is independent of the outcome / result of such appraisal. This amount is payable at the time of submitting application form.
    Processing Fees Upto 2% of Loan Amount plus applicable taxes and/ or other statutory levies
  • The tenure of the loan is also dependent on the customer’s profile, age of customer at maturity of loan, age of property at loan maturity, depending upon the specific repayment scheme as may be opted and any other terms which may be applicable based on prevalent norms of Vastu HFC.
  • Vastu HFC calculates the loan eligibility taking into consideration various factors such as income, other sustainable income, age of the borrower, tenure of the loan, work experience and other key parameters that may influence credit worthiness.


  • The most important feature of our offering is that we do not collect any physical document from the customer until we are sure that we can satisfy your requirements.
  • Our documentation requirements are structured to ensure that we collect the least number of documents. The documentation includes an application form, copies of your identification documents, address proof, income documents, bank statements and property documents.
  • Please note that depending on the individual case, Vastu HFC reserves the right to ask for any additional documents as well.

3.Loan Disbursement

We undertake a comprehensive collateral evaluation which comprises of a legal and technical appraisal to understand the marketability, maintenance, the age of property, level of construction, quality of construction, if required legal clearances are in place and so on.

  • In case the construction has commenced within 3 months prior to date of sanction, refinance may be provided for excess payment already released by borrower.The date of commencement of construction should be certified by the technical assessor.
  • The amount sanctioned may be disbursed on the basis of the stage of construction of the property.
  • The amount disbursed may be done through electronic transfers or cheque.

Security interest on the property being financed and / or collateral may be required as per the terms stated in the sanction letter.

As a customer of Vastu, we would provide you all the necessary records and documentation for you to avail the tax benefits on your loan.

We strongly recommend insurance coverage on the property being financed and on the repayments of your home loan.

Home Loan