Plot + Construction Loan Explained: Why Banks Don’t Fund 100% & What You Need to Know

Thinking of buying a plot and building your dream home on it? 🏡 Great plan! But if you’re assuming the bank will fund 100% of your plot + construction cost, you might be in for a surprise. Full loan money? That’s a myth! 😅 In this episode, Sourabh shares his excitement about buying a ₹1 crore plot and spending ₹1 crore more on construction—only to learn that the bank is offering just ₹1.5 crores. Why? 🤔 We break down how banks actually evaluate plot + construction loans. While they do offer loans for both land and building, it comes with conditions: ✅ You must start construction within 6–12 months ✅ Loan is disbursed in phases, not as a lump sum ✅ Factors like your income, CIBIL score, project cost, and property valuation decide how much loan you actually get 💡 Example: Even with a ₹25L income and a good credit score (700+), you won’t get ₹1 crore for a ₹1 crore plot + ₹1 crore construction plan. Banks typically lend 70–80% of the estimated value—not the total cost. So if you're planning your dream home, plan your finances smartly! 💸 ✅ Know your loan eligibility ✅ Prepare your downpayment ✅ Time your construction right For more real talk on construction, finances, and home building 🧱 — follow Brick & Bolt! #homeconstruction #plotloan #constructionloan #loanplanning #homefinancetips #brickandbolt #propertyfinance #homeloanfacts #homebuyingtips #constructionbudget #loaneligibility #propertyinvestment #realestateindia #houseconstruction #techinconstruction #buildingmyhome #loanprocess #constructionjourney #homeplanner #architecturetips #civilconstruction #dreamhomeproject #plotpurchase #constructiontips #firsttimehomebuyer #housingloan #loanmyths #bankloanlogic #budgetyourbuild #financialplanning