Reliance Home Loan for Under-Construction Property Out Now
Investing in an under-construction property is not a new phenomenon in India as people generally opt for it as the price is invariably found to be less more often than not. There are many lenders, such as Reliance Housing Finance, which offer home loans to buy an under-construction property. So, you can check out the Reliance Home Loan details pertaining to under-construction property in this article.
Nitty Gritty of Reliance Home Loan for Construction The loan is obtained for a short term to pay for the cost of home construction. Borrowers availing the loan must get ready to pay at Prime Lending Rate (PLR) that varies with time. The loan would require you to submit a construction timetable showcasing plans and budget. You can get the same from the property developer with whom you are negotiating a purchase deal. The construction loan can further be classified into one step loan and multi-step loan. Let’s check out what they are.
One-step Loan This loan means the same lender for construction and mortgage
Multi-step Loan The mortgage and construction loan are split wherein the construction of the building is split. The mortgage payment begins after the construction of the building.
Construction Stages There are various stages of construction that include the following – Foundation – At this stage, home undergoes construction with the placement of steel. Frame and Brickwork – The builder places the frame of the house including roofs and windows. Lock Up – The doors and windows become lockable at this stage Second Fix – At this stage, plumbing and electrical work gets completed with the installation of pipes, gutters and plaster boards Completion – This is the final stage of construction wherein the builder tells buyers about the features of the home.
How Would the Payment Get Disbursed at Various Stages of Construction? At the foundation stage, a maximum of 20% of the total price is disbursed. The framework, lock up and second fix stages would see a disbursement of up to 70% of the combined price. The remaining 20% of the total cost would be paid by the bank at the time of completion.
How Much Time Does Reliance Take to Disburse at Various Stages? It takes around 2-7 working days to release the payment at various stages of construction. Advantages of Reliance Home Loan for Under-construction Property The loan taken to buy an under-construction property comes with the following benefits. Ease of Payment – You need to make a down payment constituting 20% of the price. After that, you need to pay the installments every month at an agreed interest rate, making it all the more convenient for you.
Scope for Greater Return – Under-construction properties are located on the city’s outskirts. And so, they are cheaper compared to ready-to-move homes. As the development kicks in, the value of the property would appreciate and increase the scope for a greater return on the investments. So, these were the details pertaining to under-construction property loans at Reliance Housing Finance. Read the details carefully before going to purchase an underconstruction property.