Upgrade and Save: Get 10% OFF on CAclubindia Pro Subscription! Use Code: SAVE10 Subscribe Now!

Pre-construction interest benefit on plot loan etc.

Avinash (lecturer) (41 Points)

11 March 2022

Hello,

I want to buy plot and have plan to start construction in 4 months on it. HDFC Bank is offering plot loan initially and then thereafter construction loan after 3-4 months (when i will get commencement certificate). My question is that,

1. Can i claim pre-construction interest if i take plot loan and construction loan thereafter?

2. Can i claim pre-construction interest if i take plot loan only?

3. Can i claim pre-construction interest if i take construction loan only?

Thanks in advance for help.

Reply
Follow
Share

2 Replies

sabyasachi mukherjee (27151 Points)
Replied 11 March 2022

Answer to 3 consecutive questions:
1. you can claim pre construction interest provided you get a loan I.e. pre construction loan .
a) You hv got to justify your credentials to the bank.
b)after justifying your credentials you get a loan for the house.
c) now you can proceed.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Avinash (lecturer) (41 Points)
Replied 12 March 2022

Thanks for reply,

Bank says that if you take plot loan and then construction loan after 2 - 3 months it will get converted into housing loan when you will submit completion certificate. But can i claim pre-construction interest on plot loan (for the EMI paid upto the time of start of construction loan EMI and even after that upto completion of property)?