Monthly EMI
₹0
Total Interest
₹0
Total Payment
₹0
Amortization Schedule
| Year | Principal Paid | Interest Paid | Total Paid | Balance |
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About Home Construction Loans
A construction loan is a special type of home loan where funds are released in stages (tranches) aligned with construction progress. Unlike a regular home loan, you only pay interest on the amount disbursed — not the full sanctioned amount.
- Stage 1: Foundation — typically 10-15% disbursed
- Stage 2: Roof/slab — 20-25% disbursed
- Stage 3: Walls, windows — 20-25% disbursed
- Stage 4: Finishing — remaining amount
During the construction period, you pay only pre-EMI (interest on disbursed amount). Full EMIs begin after the final disbursement. This calculator shows the full EMI on the total sanctioned amount.
Frequently Asked Questions
What is pre-EMI in a construction loan?
Pre-EMI is the simple interest charged only on the amount disbursed so far. Once the entire loan is disbursed, your regular reducing-balance EMI begins.
Can I get tax benefit on a construction loan?
Yes. Section 80C benefit on principal and Section 24 benefit on interest (up to ₹2 lakh p.a.) apply from the year construction is completed. Pre-construction interest can be claimed over 5 years post-completion.
What is the typical timeline for a construction loan?
Banks usually sanction construction loans with a completion deadline of 2–3 years. Extensions may be granted on valid grounds.