Home Loan for Under Construction vs. Ready to Move In property


11 Dec 2023 | 5 min min read

Everyone today wants to buy a house so as to call it their own home. However, buying a home is a tedious task. There is a complicated procedure involved in buying your dream home & every time you think you are closer to your goal, the goal just runs away from you. Let’s say if you have made up your mind to buy a property, you start with the details such as locality, the project developer, weather the property is ready to move in or under construction, available discounts, government subsidies, loan options in the market and the government proceedings. To avoid hassles involved in the home loan application, you can apply for one through

Once you get into home buying procedure, you will start wondering whether you have entered into a wrong arena & also whether you will be victorious when everything is done. Do not worry, we are here to help. The very first thing which you will be considering while making a house purchase is, how much money do you have? Is it enough? Will you be considering taking a loan and what is the home loan interest rate? If the property in construction state, how much time will it take in getting possession etc.?

Today we will give you a brief idea of loan criteria for under construction and ready to move in property. First of all, let us understand what are the pros and cons of under construction and ready possession property.

Pros of under construction property

You can easily make your choice when you approach the developer when the project is under construction e.g. you get a lot of options to choose from like, your desired floor, available space options & in some cases you can also decide on what fittings you prefer.

The scope of price increase in future, as we all know, the ongoing construction property is always cheaper than a constructed one. Once you have purchased the property while it is in the ongoing construction stage, the prices are bound to increase when the property is ready.

You can be the property owner for a fraction of amount. Let’s say you book a property in an ongoing construction stage, you don’t have to pay the whole property amount at one shot. You can make regular installment payments to the developer according to slabs. In theory, you become a property owner by continuously spending a small amount.

 Cons of under construction property

Project delay once you purchased the property, there might be a delay in possession. This usually happens in Indian property market. This is the reason; it is suggested to make the payments according to slabs.

The property can sometimes be compromised and you don’t get what was promised to you.

Pros of Ready to Move In Property

You pay for what you see. Buying a ready possession property is the best since you pay for what is displayed and there are no hidden agendas or surprises for the future.

You can immediately move in since for a lot of people, this would be like buying their first house. Purchasing a ready possession property gives you relief on paying rent every month.

Cons of Ready to Move In Property

A lot of money needs to be shelled out initially. You will need to make all the payments in one shot like down payment, registration, loan, etc.

The inflated price. You pay a premium amount for what you could have saved purchasing the property during “under construction state”.

Loan criteria

When you apply for a loan when the property is under construction, you only pay EMIs for what the bank has disbursed to the developer. The developer borrows your loan amount from the bank as per the construction speed i.e. according to the slabs. The loan process for under construction property is smoother than of a ready to move in option.

When it comes to ready possession properties, you will avail full loan amount, which will be credited to the developer and you will start making the EMIs from the 1st month of possession.

Buying a dream house is very challenging and a little bit of research on the same won’t hurt. This will help you save a lot of money, time and efforts in the future. To explore best home loan schemes, log on to or mail us at We are here to serve you best financial products without any hassles.

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