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What Is Land Construction Loan Calculator

If your dream is to construct your own home or purchase a plot of land, you can now make it a reality thanks to a land construction loan. 

But buying property to build a house or constructing a house on a vacant plot requires significant financial support. Right from identifying the kind of property or house, planning, executing and finishing, buying a plot or constructing a home comprises various expenditures that call for a large sum of money. 

Hence, having a land construction loan can help you in that regard. But one of the most critical aspects before obtaining a land loan is to know exactly how much you can avail so that you can comfortably repay over a period of time. Here, having a land construction loan calculator can be immensely supportive in helping you make an informed purchase.

Difference Between A Home Loan and A Land Construction Loan

A land construction loan and a home loan may appear similar in the process of obtaining it, terms and conditions as well as interest rates. But there are some areas of differences between a home loan and a land construction loan. Let's look at some of the major points:

  • A home loan is only applicable to a residential property that has already been constructed, is under construction or likely to be constructed soon.
  • A land construction loan is available only to purchase a residential property located within a municipal or corporate limit.
  • A land construction loan is not permissible if you are looking to purchase agricultural land.
  • You can purchase a residential plot with a land construction loan and become eligible for a home loan to construct the house in that particular land after you've purchased the plot.

How to Use a Loan Construction Calculator?

One of the principal benefits of using a land construction EMI calculator is to help you know the amount you will need to pay as EMI. If you know the property rates and the lending institutions' interest rates, you can easily gauge the EMI amount through the calculator. All you need to do is:

  • Enter the loan amount
  • Enter the loan tenure or duration in months
  • Enter the interest rate
  • Enter the processing fee
  • Click on calculate
  • Receive the results in seconds

Use the calculator as a general self-help planning tool to help you guide your property purchase.


There are numerous benefits of using a land construction loan calculator before you decide to make a purchase. These include:

There are numerous benefits of using a land construction loan calculator before you decide to make a purchase. These include:

1) Get to know the home loan amount you can be eligible for

2) Receive an indicative EMI amount against your loan

3) Plan your purchase based on the principal amount and EMI you can afford for the tenure of the loan

4) It helps you plan your cash flows and ensure your construction or property purchase progress goes smoothly without a halt.

5) It saves you time and effort by calculating the EMI in seconds

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The land construction loan calculator helps you determine the number of EMI amounts you need to pay towards your land construction loan. This can help you make an informed choice, as it also functions as an interest calculator to help you understand the interest due on your land loan in addition to the overall EMI amounts.

The land loan construction calculator estimates your repayment amount by considering the principal amount, the rate of interest, loan duration or tenure entered into the calculator to display the EMI amount you need to pay each month.


It is a simple and easy-to-use calculator. All you need to do is key in the principal amount's values, loan tenure or duration, and interest rate to get instant and exact results automatically. You can know your total interest payable, the total amount — interest + principal, and the loan EMI per month.

A loan construction calculator can be useful in helping you decide whether you can afford the financial commitment of a land loan or a construction loan in the long run. You can use the calculator to understand how an increase or decrease in your EMI amount will depend on the principal loan you intend to obtain and the loan duration for which you will be paying the EMIs

Knowing your land construction EMI in advance through the loan calculator can help you determine four crucial factors. These are:

  • The amount you need to borrow on your construction loan.
  • The decision to go for a long-term or short-term loan.
  • The amount you can comfortably contribute towards your EMI amount every month without impacting your budget and future expenses.
  • The amount you can comfortably contribute towards the down payment.

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Disclaimer:- ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470.  Please note, loans related services are not Exchange traded products and I-Sec is acting as a distributor to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.