Land loan, also known as Plot loan, is an ultimate financing option for customers looking to buy a piece of land/plot for residential construction purposes or as an investment. Land loan is available at attractive interest rates starting from 8.15% for a maximum tenure of up to 20 years.
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Features and Benefits of Land Loan
Mentioned below are some of the salient features and benefits linked with land loan/plot loan.
- High loan-to-value ratio of up to 90%
- Longer tenure
- Attractive interest rates
- Generous Tax benefits
- Availability of balance transfer facility (offered by most of the leading providers)
Land Loan Interest Rate & Processing Charges
The table below shows Land loan interest rates and processing charges for the leading providers.
|Provider Name||Interest Rate||Processing Charges*|
|SBI||8.65% onwards||0.40% of the loan amount+Applicable Tax|
|HDFC Bank||8.15% onwards||0.50% of the loan amount+Applicable Tax|
|ICICI Bank||8.90% onwards||1% of the loan amount+Applicable Tax|
|PNB Housing||10.25% onwards||0.35% of the loan amount+Applicable Tax|
|Axis Bank||8.55% onwards||1% of the loan amount+Applicable Tax|
|Canara Bank||9.10% onwards||0.50% of the loan amount+Applicable Tax|
|Bank of India||8.10% onwards||0.40% of the loan amount+Applicable Tax|
|YES Bank||10.25% onwards||2% of the loan amount+Applicable Tax|
Land Loan Eligibility
Here are some of the pre-requisites to be eligible to apply for a Land loan.
|Age||Minimum: 18 years|
Maximum: 65 years
|Nature of Work||Salaried/Self-Employed|
|Credit Score||750 or above|
Over and above this, there are several other factors like an applicant’s income, liabilities, assets owned, etc., which are evaluated by the provider to determine the eligibility of a customer for availing a Land loan.
Following are the documents required in order to apply for a Land loan.
- Duly filled application form
- Age proof
- Income proof
- Address proof
- Plot/land-related documents
- Layouts/drawings of the plot (approved by the respective authority)
Note: This list is non-exhaustive. Additional documents may be required based on the applicant’s profile and the provider’s requirement.
How to Apply for a Land Loan
Customers can apply online for Land Loan through Paisabazaar.com by simply following the below-mentioned steps.
- Go to land loan section at paisabazaar.com
- Fill out the required field and agree to the given terms & conditions
- Enter your personal and loan-related details
Now, few eligible loan options will appear. Compare and apply for a home loan that suits your requirements.
Read Also: How is a Home Loan Different from Land loan
Q1. Is it mandatory to have a co-applicant?
No, a co-applicant is not required to apply for a land loan. However, it is mandatory for the co-owner(s) to join as co-applicant(s).
Q2. Are there any prepayment charges?
In case of variable rate loans having individual borrowers, no prepayment charges are levied as per RBI directives. However, a lender may charge a certain prepayment penalty in case of a fixed-rate home loan.