Housing Loans

226 - Composite Loan

Composite Loan

Brief Terms & Conditions at a glance


Purpose of Loan

For purchase of land and construction of house thereon.


Who is eligible

All individuals who are salaried/professionals/self-employed/businessmen/NRI/Pensioners who have adequate repayment capacity.


Quantum of loan

75% to 85% of the project cost subject to repayment capacity and sufficient net take home income.


Repayment period

  1. For salaried individuals - 5 years to 30 years.
  2. For professionals - 5 years to 25 years.
  3. For NRI - 5 years to 15 years.
  4. For business class  - 5 years to 20 years.


Interest rate applicable

Floating rate of interest applicable as given below:

  1. For loans up to Rs. 30 lakhs  - 9.00% to 10.50%.
  2. For loans above Rs. 30 lakhs -9.25% to 10.75%.



The loan amount for purchase of site shall not exceed 70% of the total loan amount sanctioned and as well as 80% of the site cost. The loan amount towards construction of house will be released as per the progress in construction.


Security for the loan

Equitable mortgage of the residential property being financed.


Collateral security

Depends up on case to case basis.


Stamp duty

As laid down in The State Stamp Act of the respective state government.


Other conditions

  1. Construction of house must begin as early as possible and not later than 18 months from the date of disbursement towards site purchase.
  2. Interest on the site loan amount to be serviced on monthly basis till the 12th month from the month of disbursement and EMI to commence from the 13th month onwards.
  3. If construction has not commenced within 18 months, then the loan amount disbursed towards site purchase will be treated as a site loan and the rate of interest applicable to site loans prevailing on the date of conversion, will be charged retrospectively with effect from the date of first disbursement.
  4. In case the loan is pre-closed within 18 months without commencing construction, then also the loan amount released towards site purchase shall be treated as site loan and rate of interest applicable to site loans prevailing as on the date of closure will be charged retrospectively with effect from the date of first disbursement.

Note: For details regarding Processing charges, other charges and other Compliances, please contact your nearest branch.

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