Plot + Construction Loan
Buy your plot and build your home with a single, unified loan. One application. One set of documents. Full tax benefits after completion.
Single Loan
One application, one sanction letter, one EMI. No juggling between two separate loans.
Full Tax Benefits
Unlike a standalone plot loan, composite loans qualify for Section 24(b) and 80C deductions after construction.
Lower Cost
Single processing fee instead of two. Often better rates than separate plot + construction loans.
How Funds Are Released
Full plot cost (up to 75–80% LTV)
~25% of construction amount
~25%
~25%
Remaining ~25%
Eligibility
Frequently Asked Questions
What is a Plot + Construction loan?
A Plot + Construction loan (also called a composite loan) is a combined financing product that covers both the purchase of a residential plot and the construction of a house on it under a single loan. Instead of managing two separate loans, you get one sanctioned limit that is disbursed in phases — first for plot purchase, then in construction-stage tranches.
Is a composite loan cheaper than two separate loans?
Generally yes. A composite plot + construction loan simplifies documentation, has a single processing fee, and typically offers better interest rates than taking a plot loan and a separate construction loan. Banks treat it as a single home loan with unified terms and tax benefits.
Can I get tax benefits on a composite loan?
Yes. Unlike a standalone plot loan, a composite plot + construction loan qualifies for Section 24(b) interest deduction (up to ₹2 lakh) and Section 80C principal deduction (up to ₹1.5 lakh) — but only after construction is completed and the certificate of occupancy is obtained.
What is the disbursement sequence for this loan?
Typically: Phase 1 — full plot purchase amount disbursed on sale deed execution. Phase 2 onwards — construction amounts released in 4–6 tranches based on milestone verification by the bank's technical team (foundation, slab, roof, finishing).
How long do I have to complete construction after plot purchase?
Most banks set a construction completion timeline of 18–36 months from plot purchase disbursement. Some lenders extend to 48 months for large projects. If construction is delayed beyond this window, the bank may revise terms or recall the loan.
One loan. Your land. Your home.
Check your composite loan eligibility across lenders and get independent guidance on structuring your plot + construction finance.