- Current Account
- Pay
- Collect
- Trade
Services
Solution for Exporters
- Debt & Working Capital
24x7 Loans
For MSMEs with turnover up to ₹30 Cr
- Treasury
- Transact Digitally
Home Loan
Home Loans and Construction Loans may sound alike to most people since they share the common goal of facilitating dream home purchases. However, there is a significant difference between these types of loans, both in terms of their purpose and the terms of the loans. It is crucial to understand both these types of loans before you proceed with purchasing your house. Let’s check out the difference between Home Loan and Construction Loan.
Home Loans, offered by banks and financial institutions, empower borrowers by providing funds to facilitate the purchase of their own homes. In the case of Home Loans, disbursing the entire loan amount occurs at once, with instalments commencing immediately thereafter, facilitating the acquisition of ready-to-move-in homes.
Home Construction Loan, as the name suggests, is extended to the borrowers to finance the construction of their homes. You need to submit your construction plan, proposal and estimated cost to the lender. Home Construction Loans are different from Home Loans in the sense that these are disbursed in instalments as the construction progresses.
Before you apply for a home loan for Self Construction, it is essential to understand the nuances of these loans. Here is how Home Construction Loans work:
Following are the major differences between Home Loans and Construction Loans:
Also Read: Top 6 factors for selecting the right Home Loan
Depending on the type of home you plan to purchase, you need to decide whether to opt for a Home Loan vs Construction Loan. Apart from selecting the right loan, you also need to select the right lender. Axis Bank has been the borrower’s choice for faster and more affordable loans. You can get Home Loans or Home Construction Loans at affordable interest rates, quicker financing and flexible terms. Apply for a Home Loan now with Axis Bank!
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
Look through our knowledge section for helpful blogs and articles.
Copyright@ 2025 Axis Bank
