Q:We are a group of 4 individuals. Some working i.e. Salaried and a few in Business. We plan to buy a plot approximate 4-5 Ghunta within the PMC limit and construction a Building having 2BHK Flats within the permissible limit - may be 4-5 units. We want this to be a financed project and AFAIK Banks offer something called a Composite Loan (Plot + Construction). Few queries based on this. The Loan has to be taken by all 4 of us to buy plot and construct. How is this possible? will the banks allow a joint borrowing based on our Income Tax from our source of income?How does the Down payment etc work. Does the Bank expect us to have a project plan etc and then approve this?For Disbursement, Does the bank pay us off in one go? We may take 2 years to construct the property? no use of having all the money at one time.We also welcome any VC's who may want to invest with us. We are planning to construct it at A quality. How easy is it to sell such properties?Is there anyone who has done projects like these? could you please get in touch with me. Could get to learn from your "Lessons Learned"
Latest Answer: Hi Krishnendu,
And also do not give a false declaration as the bank may demand that you repay the loan in one chance and if you are not able to pay, it will spoil your credit history.
If you don’t plan to construct a house instantly, you could apply for a plot loan or get the existing loan modified or converted into a plot loan.
Q:Hi, I own a plot and want to construct a house. it has been 15 years of me working and I want to withdraw money from my Employees provident fund ( EPF). How can I do this?
Latest Answer: Banks like SBI, Axis Bank, HDFC Ltd, ICICI Bank, etc, can be applied for a construction loan. As a thumb rule, if you are below 40 years, you should be eligible for around four times your net annual income as a loan of 20 years tenure. If the loan amount is below 30 lakh, the rate of interest will be in the range of 10% to 10.25% per annum.
