Pre-construction interest benefit on plot loan etc.

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.

Replies (2)
Quick Summary
This discussion explores whether pre-construction interest can be claimed on plot loans and construction loans. The consensus is that you can claim pre-construction interest if you secure a specific pre-construction loan, provided you meet the bank's criteria. It also touches on how plot loans might convert to housing loans upon completion.

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.

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)?

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