Help on Composite Loan

I am buying a land/plot to construct a house. The land I am buying is within city limits and satisfies all requirements for the composite home loan. The land although has small shops already constructed since it lies in the prime area. I don’t want to demolish them because they can be useful to me too. The shops’ foundation is really good and I am planning to construct my home on top of them and renovate the shops in order to have staircase access to the upper floor.
Can I get a composite loan for this case?

Is anyone going to help at all?

Hi Darsh,

A Composite Loan, also known as Plot-Plus-Construction Loan, is a type of Home Loan offered to individuals who are looking to purchase a plot with the purpose of building a house on it within the next few years. This kind of loan is disbursed in various instalments, commonly known as tranches. The first tranche is disbursed for the purchase of the plot, while the rest of the tranches (usually three) are released as the construction of the house progresses.

However, in your case, since the property is already constructed and you will be renovating it, the bank might offer a Home Loan. We suggest that you speak to your bank about this.

Looking for a Home Loan? Click here.

BB Expert