Construction Loan

Construction Loan – Build with Confidence

A Construction Loan is a short-term financing solution designed to help individuals, builders, and developers fund the construction of residential, commercial, or mixed-use properties. Unlike traditional home loans, construction loans provide funds in phases, ensuring better cost control and smooth project execution.

How a Construction Loan Works

Construction loans are released in installments (draws) based on the progress of your project. Funds are typically disbursed after inspection or milestone completion, such as foundation work, structure completion, roofing, or finishing stages.

This method protects both the borrower and lender by ensuring funds are used strictly for construction purposes.

Key Features of a Construction Loan

• Stage-wise payments aligned with construction progress
• Interest-only payments during the construction period
• Flexible repayment or conversion options after completion
• Suitable for homes, apartments, offices, and commercial buildings
• Transparent cost control and budget management

Benefits of Choosing a Construction Loan

• Better cash flow management during construction
• Pay interest only on the amount disbursed, not the full loan
• Encourages timely project completion
• Reduces financial burden during early construction stages
• Customizable plans based on project size and duration

Who Can Apply?

Construction loans are ideal for:

• Individuals building their own homes
• Property developers and builders
• Small to medium real-estate investors
• Commercial construction projects

Applicants typically need approved building plans, cost estimates, land ownership documents, and contractor details.

Repayment Options

Once construction is complete, the loan can be:

• Converted into a long-term home or mortgage loan, or
• Settled through structured installment plans

Repayment terms depend on the lender’s policy and borrower eligibility.