Booked a new launch in Kokapet, Narsingi or Financial District? Under-construction loans disburse in stages with pre-EMI during build — but only if the project is RERA-registered and on the lender's approved (APF) list. We match you to lenders that have already approved your project, for faster, lower-risk funding.
Unlike a ready-to-move property where the full loan is disbursed at once, an under-construction loan releases money in tranches that track the builder's progress. You pay pre-EMI (interest only) on what's disbursed, and full EMI begins near possession. The two things that decide your risk and speed are the builder's RERA status and whether your project is on the lender's APF list.
Loan sanctioned against the project and your eligibility; tripartite agreement signed between you, builder and bank.
Bank releases tranches at foundation, slab, brickwork, plastering and finishing — paid directly to the builder after stage verification.
You pay interest only on the disbursed portion. Optionally start full EMI early to cut total interest.
After final disbursal/possession, full EMI (principal + interest) begins. Construction-period interest becomes tax-claimable over 5 years.
Before you sign, verify: RERA registration number and project status, clear & marketable title, approved building plan, and whether your bank has APF-listed the project. A project on multiple banks' approved lists is the strongest signal of legal and construction soundness. Mintra runs this check for free as part of your loan match.
Plan your cash flow for the overlap between rent (if you're renting) and pre-EMI. Use our registration & down-payment calculator to size upfront cash, and our EMI calculator to project full EMI from possession.
| Under-Construction | Ready-to-Move | |
|---|---|---|
| Price | Usually lower entry price; pay over build period | Higher, but no waiting |
| Disbursal | Stage-wise (CLP); pre-EMI during build | Full loan at once; immediate full EMI |
| Risk | Delivery / delay risk — mitigate via RERA + APF | No construction risk |
| Tax | Construction interest claimed over 5 yrs post-possession | Full benefits from year one |
We check whether your project is bank-approved, explain your stage-wise disbursal and pre-EMI, and match you to the lender that funds it fastest — free, results in 48 hours.
Get My Project Checked