Land Loan: If you like a plot and don’t have money, then there is no need to worry. You will get up to 85 percent loan to buy the plot. In such a case, you will have to pay only 15 percent. For this, you can take land. Many banks provide this loan.
Land Loan: The price of land is increasing day by day at a rapid pace. In such a situation, many people do not have money to buy land. But a house has to be built to live in. If you do not have money and want to buy land, then now there is no need to worry. You can easily buy your favorite plot. For this, you can also take the help of loan to buy land like a home loan. Land can be easily purchased through land purchase loan. In this, you pay money in installments. However, like other loans, interest has to be paid in this as well.
Almost all banks and NBFCs in the country provide land loans. This loan is also a secured loan like a home loan, but the terms are different. In land loan, more interest has to be paid than home loan. 80 to 85 percent funding is done. After this, you have to invest the remaining amount yourself. This loan is only for buying land. A separate loan has to be taken to build a house. This loan is for a period of 15 to 20 years.
Who can take a land loan
The eligibility criteria for a loan to buy land is the same as that of a home loan. The age of the borrower should be between 21 and 65 years. He should have a stable income. The applicant should be either salaried or self-employed. Usually, banks give this loan only to those salaried people whose minimum income is Rs 10,000 per month. Similarly, banks generally give plot loans to self-employed people earning Rs 2 lakh annually. The income criteria of different banks is different.
Interest rate for land loan
The interest rate on plot loan is slightly higher than that of home loan. If you intend to build a house on the same plot in future and take a construction loan along with it, then you may have to pay less interest. According to media reports, HDFC Bank’s plot loan interest rate starts from 8.40 percent. Similarly, SBI’s plot loan interest rate is 9.50 percent. ICICI Bank starts at 8.50 percent, PNB Housing Finance at 9.25 percent and LIC Housing Finance at 7.70 percent. If your CIBIL score is good, then you can get a great deal.
These documents will be required
- 1 – Aadhar card, identity card or PAN card etc. can be used for identity proof.
- 2 – Ration card, electricity or water bill, lease agreement etc. can be used for address proof.
- 3 – Along with this, bank statement of last 6 months will also have to be given for income proof.
- 4 – Latest IT assessment will have to be given for self-employed.
- 5 – Apart from this, your land tax receipt, title deed and other documents demanded by the bank will also have to be submitted.
