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Home Construction Loan

Our Home Construction Loan is perfectly suited to your needs; giving tailored and flexible finance to put building blocks to your dream home. The loan is disbursed as per the stage of construction, giving you the flexibility to contribute your share too in parts. MOHFL Home Construction Loan is extended to construct residential premises either from a contractor or contractual builder on a freehold owned plot of non-agricultural land as per plan approved by the local authority.

Loan Amount

Loans covering up to


of the construction cost


Rs.50 Lakhs

*At the sole discretion of MOHFL
Loan Tenure


5 Years


25 Years
25 Years
We offer loans covering up to 85% of the construction cost approved by a certified engineer / architect and verified by an MOHFL valuer.
Loan tenure may not be extended beyond the age of sixty (60) years in case of Salaried and Seventy (70) in case of self-employed customers at the time of loan maturity *
Interest Rate
Customer Type Interest Rate RPLR Minus Spread MOHF RPLR
Salaried 11.75% to 16.00% 8.05 % to 3.80 % 19.80%
Self Employed 12.75% to 17.00% 7.05 % to 2.80% 19.80%

*RPLR - Retail Prime Lending Rate

Approach for gradation of Risk: The risk premium will be decided on a case to case basis as decided by the MOHFL. The approach for gradation of risk is based on factors such as nature of loan, credit worthiness of the borrower, nature of security, nature of the Product, type of asset being financed, borrower profile, repayment capacity, borrower’s other financial commitments, past repayment, tenure of the loan, geography (location) of the borrower, end use of the loan as represented by the underlying asset etc. Such information is collated based on the borrowers input, credit bureau and field inspection by the MOHFL officials. While deciding the interest rate and other charges, the rate offered by the Competitors in the market would also be taken into consideration

Processing Fees

Up to Rs. 5,000 /- (Rupees Five Thousand only). Initial Processing Fee collected is onetime non-refundable fee, and is collected for the purpose of processing the loan application of the borrowers and the same is independent of the outcome of such processing. The same is payable by way of Cheque / Demand Draft / Electronic mode of payment from borrowers bank account in favour of Motilal Oswal Home Finance Limited.

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