Plot Loan for Land Purchase
Plot Loan to Build the Home of Your Dream/Build your Assets
Not comfortable living in a regular-sized flat, thinking to purchase land and build a space that is uniquely yours then get a low-interest plot loan with FinMarket to build the home of your dream. Avail a plot loan with interest rates as low as from 9.75% p.a. onwards. The loan tenure for plot loans is up to 30 years and gets a maximum loan amount up to 1 crore or more. We provide land loans at affordable interest rates with low processing Apply Now.
Features and Benefits of Plot Loan
- Interest rate : If you purchase a land to build a home, you can avail a plot loan at a low-interest rate. All the charges will be communicated upfront hence there will be no hidden charges
- Prepayment charges : Most of our lenders provide options to close the loan after completing initial EMI's without any pre-closure charges.
- Tax benefits : You can avail tax benefit for the loan amount, after completion of construction of a house, bungalow, or a villa on the plot purchased.
- Tenure: Plot loan comes with 15 - 30 years of loan tenure, it varies based on the customer profile, age of the customer, and customer repayment capacity.
- Loan to value ratio: Loan to value ratio (LTV) is the amount of loan he/she can get against the property. For land loans, the LTV ratio is capped at a maximum of 80% of the total land value.
- Balance transfer: Customers with land loans can opt for a balance transfer facility, a balance transfer is a facility offered by banks to transfer the balance loan amount to other banks with a low-interest rate.
- Top-up loan: A top-up loan is a loan granted by the bank over and above your current plot loan. The top-up loan is a financial help provided by banks to fulfill your dreams with little financial assistance.
- Quick disbursal: Since quick processing and disbursal is the top priority while purchasing a land, we speed up the process and once get approved, the lender sends the fund directly to your bank account.
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Plot Loan Types
Plot loan:
A loan to Purchase vacant residential plot or piece of land, the purchased plot should be within municipality or corporation limits.
- The land or plot of your choice must be purchased strictly for non-agricultural purposes.
Plot + Construction Loan:
Customer who opts for plot + construction loan need to purchase the residential land and should construct a house within the stipulated time
- If a customer does not begin construction within the specified time,then the bank can increase the rate of interest
The Eligibility Criteria for You to Avail Land Loan on the Below Factors
| Criteria | Salaried | Self-Employed |
|---|---|---|
| Age (Primary applicant) | 23 years to 55 years | 23 years to 55 years |
| Age ( Co-applicant) | 18 years to 55 years | 18 years to 55 years |
| Net Monthly Income | Rs.35,000 | Rs.35,000 |
| Loan Tenure | Up to 30 years | Up to 30 years |
| CIBIL Score | Above 750 | Above 750 |
| Minimum Loan Amount | Rs.30 lakhs | Rs.30 lakhs |
| Maximum Loan Amount | Rs.100 lakhs | Rs.100 lakhs |
Documents Required for Plot Loan
| Criteria | Salaried | Self-Employed |
|---|---|---|
| Identity Proof | Passport, Voter's ID, Driving License or PAN Card. | Passport, Voter's ID, Driving License or PAN Card. |
| Residence Proof | Passport or utility bills. | Passport or utility bills. |
| Income proof | Past two years bank statement of salary account. | Past two years audited financial statements. |
| Property documents |
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Interest Rates for Plot Loan 2024
| Banks/NBFC Names* | Interest rates | Processing Fees |
|---|---|---|
| HDFC Plot Loan | 9.75% onwards | 20% of the loan amount |
| AXIS Plot Loan | 9.75% onwards | 20% of the loan amount |
| ICICI Plot Loan | 9.75% onwards | 20% of the loan amount |
| Kotak Plot Loan | 9.95% onwards | 20% of the loan amount |
| Bajaj Finserv Plot Loan | 9.75% onwards | 5% of the loan amount |
| SBI Plot Loan | 9.55% onwards | 5% of the loan amount |
| IDFC Plot Loan | 10.25% onwards | 40% of the loan amount |
| Tata Capital Plot Loan | 10.25% onwards | 40% of the loan amount |
| PNB Plot Loan | 9.95% onwards | 10% of the loan amount |
| Aditya Birla Plot Loan | 10.25% onwards | 40% of the loan amount |
* Note: Wherever the details regarding interest rates, processing fees and tenure are mentioned, they may differ as per the lenders' discretion. The actual eligibility will be determined based on the borrowers' risk profile during the loan application process.
Tips for getting Plot Loan Approval
- Maintaining a good credit history, a score above 750 is considered ideal.
- Check with the lender to find out whether or not you are eligible for a plot loan.
- Compare interest rates offered by various lenders ensures that you get the lowest rate.
- Don't apply for a loan at several lenders which decreases your credit score.
- Assess various fees that your lender charges to get a clear estimate of the expenditure.
- Once done with finalizing a lender, make sure you ask them about loan pre-payment.
- Before borrowing a loan, plan for its repayment to avoid financial confusion later.
- If your loan application has been rejected, it is advised to wait for at least 6 months to apply again.
Do's and Don'ts while applying for a land loan
| Do's | Don'ts |
|---|---|
| Check the rate of interest offered by the lender. | Ignore your credit score and make multiple inquiries regarding loans from different banks. |
| Check the eligibility criteria and documents. | Do not sign your loan documents without reading it completely. |
| Consider how you'll pay the loan off. | Don't ask someone to co-sign your loan if you're Not sure you can make the payments. |
| Make sure that the loan is in accordance with your FOIR. | Applying without calculating your required credit amount. |
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FAQs
Find answers to all your queries ranging from application procedure to eligibility criteria, interest rates, and documents required.
Q: What is the maximum tenure of a plot loan?
A: The maximum tenure for a plot loan is 30 years, but it varies from lender to lender.
Q: Can I get tax benefits on my plot loan?
A: No, a plot loan does not offer any such tax benefits offered by a home loan, you can avail tax deduction only if you are constructing a house on the land.
Q: What is the maximum time available for starting construction after taking a land loan?
A: The construction should be completed within two years from the date of disbursement of the loan.
Q: Does a loan for construction include the cost of labour and raw materials?
A: Yes, a loan for construction will include both these costs.
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