Home Loan Guide: Eligibility, Tax Benefits, and EMI Explained for New Home Builders
Personal Finance
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News18•28-01-2026, 21:14
Home Loan Guide: Eligibility, Tax Benefits, and EMI Explained for New Home Builders
- •Home construction loans are available from banks and housing finance companies, often as composite loans covering plot and construction costs.
- •Loan amounts are disbursed in tranches based on construction stages, requiring architect/engineer certificates and site photos.
- •EMI typically starts after full disbursement and construction completion; pre-EMI interest is paid on disbursed amounts until then.
- •Under the old tax regime, Section 80C allows up to Rs 1.5 lakh deduction on principal repayment, but only after construction completion.
- •Section 24(b) offers interest exemption: up to Rs 2 lakh for self-occupied homes (reduces to Rs 30,000 if construction exceeds 5 years) and full interest for rented properties (loss set-off limited to Rs 2 lakh).
Why It Matters: Understanding home loan eligibility, tax benefits, and EMI is crucial for sound financial planning before building a home.
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