What are the Documents Required for Getting a Loan for Under Construction Property?

Banks often ask for additional verifications when sanctioning home loans for under-construction property, unlike a ready-to-move or resaleable property. Therefore, the documentation process followed while processing a home loan for an under-construction property is different.


Applying for an under-construction home loan

When you are on the lookout for buying a property, you may be persuaded by the extravagant advertisements that give you a view of swanky housing projects. As a buyer, you need to ensure that the promises are likely to be delivered.

  1. Visit the project plot and scrutinize every detail, including the work progress and quality.
  2. Check out the record of the builder regarding project delivery.
  3. Get the assurance that the layout of the flat and carpet area mentioned in the property papers is corroborating.
  4. Verify that the builder has all the essential property papers to build the property at the said place.
  5. Make a proper valuation of the property and estimate the property’s future price.

List of documents required for getting a loan for under-construction property

Verification of documents is mandatory before the bank sanctions a home loan for under-construction property. Below is the list of copies that you can keep handy to conclude your application process without any hindrance.

  1. Complete documents of your KYC (Know Your Customer).
  2. Documents to support your income proof.
  3. Khata certificate and khata extract.
  4. Deed of Sale.
  5. A duly registered and stamped agreement was made with the builder.
  6. NOC (No Objection Certificate) from the builder.
  7. Letter from the builder specifying the recent progress of construction.

Unregistered projects

In case the project isn’t a registered one, ask your builder to furnish the following documents:

  1. One copy of the agreement with the builder.
  2. One original copy of the money receipt issued by the Sub-Registrar.
  3. A proof of Own Contribution Amount.
  4. The builder acknowledged one copy of the authority letter.
  5. One bought a copy of the authority letter addressed to the Sub-Registrar.


You should also find out if the builder has a tie-up with any banks or home finance institutions. If yes, you can get all the verification documents from such a bank or institution. Apart from getting the documentation right, a homebuyer would also get affordable home loan interest rates. This can be checked by using a home loan EMI calculator. So, the home loan must be sought from the institution that provides the best loan offer.

Although the process of documentation for an under-construction home loan is longer than a ready-to-move property, under-construction properties are more affordable. If you choose your property wisely, you can save the purchase cost of your home.


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