Buying a ready-to-move-in house or apartment is often more convenient than building your own home. But many buyers have questions about financing a constructed property with a home loan.
In this blog, we explain eligibility, types of loans, documentation, process, and tips to make your dream home purchase smooth and hassle-free.
🧭 1. Is it possible to get a home loan for a built property?
Yes! Banks and NBFCs (Non-Banking Financial Companies) provide home loans for ready-to-move-in properties, including:
Independent houses
Apartments / Flats
Villas in approved layouts
These loans are usually called “Home Purchase Loans”, and you can avail them whether the property is new, pre-owned, or fully constructed.
💰 2. How Home Loan for Built Property Works
Unlike construction loans, which are disbursed in stages, a home purchase loan is disbursed as a lump sum directly to the seller or developer.
Loan Features:
Loan amount: Typically 80–90% of property value
Tenure: 5–30 years
Interest rate: Floating or fixed
EMI: Calculated based on principal, interest rate, and tenure
Example: If a house costs ₹50 lakh and you qualify for 80% loan, the bank will pay ₹40 lakh to the seller and you pay ₹10 lakh as down payment.
📝 3. Eligibility Criteria for a Home Loan on Built Properties
Banks verify several factors before approving a loan:
Age – Usually 21–65 years (at loan maturity)
Income – Salaried or self-employed; banks require minimum income proof
Credit Score – Preferably 750+ for better rates
Property Documents – Clear ownership, approved layout, registered sale deed
Property Type – Only approved properties (RERA, DTCP, or CMDA) are eligible
Existing Liabilities – High EMIs or unpaid loans may affect eligibility
🏢 4. Documents Required
For a smooth loan process, keep these ready:
A. Personal Documents
PAN card & Aadhaar
Passport-sized photos
Bank statements (last 6 months)
Salary slips or IT returns
B. Property Documents
Sale deed / Agreement to Sell
Approved plan and layout plan (RERA / DTCP / CMDA)
Encumbrance certificate (EC)
No-objection certificate (NOC) from builder/association
C. Loan Documents
Loan application form
Processing fees receipt
Cheque for initial processing
🏦 5. Steps to Get a Home Loan for Built Property
Pre-approval / Eligibility Check – Know how much loan you can get.
Select Property – Ensure approved legal documents and clear title.
Apply for Loan – Submit application with all documents.
Property & Income Verification – Bank evaluates both your finances and property legitimacy.
Sanction Letter – Bank approves the loan with terms, interest rate, and tenure.
Disbursement – Bank pays the seller directly (or builder if new property).
Registration & Handover – Complete sale deed registration with bank lien.
💡 6. Tips to Keep in Mind
Verify approvals – Ensure DTCP / CMDA / RERA approvals to avoid rejection.
Check loan eligibility – Don’t overestimate borrowing capacity; leave buffer for EMIs.
Negotiate interest rates – Compare between banks and NBFCs.
Understand hidden costs – Registration, stamp duty, processing fee, insurance.
Get a lawyer to verify documents – Avoid legal complications later.
Home Insurance – Consider taking insurance to protect your property.
📌 7. Advantages of Buying a Ready-to-Move-In Property with a Home Loan
Immediate Possession – No construction wait; move in after registration.
Transparent Costs – No cost overruns like in construction projects.
Faster Loan Process – Banks approve faster as property already exists.
Better Investment – Can generate rental income immediately.
❌ 8. Common Pitfalls to Avoid
Buying unapproved or illegal properties
Not checking builder’s RERA registration or EC
Ignoring pending dues, taxes, or society charges
Overlooking hidden costs like maintenance deposits
✅ 9. Final Thoughts
Yes, you can buy a built house or apartment with a home loan, provided you carefully check property approvals, legal documents, and your eligibility.
At Prakash Constructions, we guide clients not just in building homes but also in buying ready properties safely, including document verification and liaison with banks for loans.