• Types of Composite Loan : Business loans A combination of a working capital loan and a term loan. This helps businesses meet short-term and long-term needs. Home loans A combination of loans for purchasing a home, constructing a home, or renovating a home.

Combines land purchase and construction: You can use a composite loan to buy land and build a house on it. Includes both land and construction costs: The loan scheme includes the cost of both the land and the construction. Requires construction plans: When applying for a composite loan, you'll need to share your construction plans with the lender.

Composite loan is a loan extended by banks and financial institutions for the purpose of purchasing a plot or land and constructing a house on it within a given a timeline. It's a combination of plot loan and construction loan.

Evaluate your current loans: List all your loans, including interest rates, amounts, and repayment terms. Find a lender: Speak with lenders who offer composite loans. Gather documents: Prepare the required documents, which may include: A completed and signed loan application Proof of identity, such as a passport, PAN card, or driver's license Proof of residence, such as a utility bill or voter ID card Bank account statements Income proof, such as a salary certificate or tax returns Proof of business existence, if applicable Submit your application: Along with your application, submit the required documents. Review the terms: Carefully review the interest rates, fees, and repayment schedule of the loan. Accept the loan: If approved, the loan will be disbursed and your existing loans will be paid off. Start repaying: Begin making payments as per the loan's schedule.

Consolidating loans A lender assesses existing loans, including home loans, personal loans, and other credit facilities The lender combines the outstanding amounts into a single composite loan The borrower makes one monthly payment to cover the composite loan

Combining land and construction loans A composite loan helps you buy land and build a house on it within a given time frame The lender disburses the loan amount in stages, upon land purchase and as construction progresses The lender monitors construction and releases the second tranche of a loan after you achieve a particular completion stage