A construction loan is a type of loan that is used to finance the construction of a new building or the
renovation of an existing building (not to be confused with renovation loan which is usually for the
interior of a house/apartment and is the case when using FindTheLoan.com). Construction loans are
typically short-term loans that are used to cover the cost of the materials, labour, and other
expenses associated with construction.
Some construction loans are disbursed in a series of instalments, depending on the progress of the
construction, while others are disbursed in a lump sum.