Loan Against Land

Loan Against Land is a type of mortgage loan offered by banks and Housing Finance Companies (HFCs) against a piece of land owned by the borrower. This piece of land is kept as collateral till the loan is fully repaid. The loan amount availed can be used by the borrower for various purposes like expanding a business, funding children’s education, meeting medical expenses, and more.
Note: Loan Against Land is provided by only a few of the providers as most of the banks and HFCs only accept residential and commercial properties. The widely-known term used for such a product is Loan Against Property.

Features and Benefits of Loan Against Land

Mentioned below are some of the features and benefits of availing a Loan Against Land.

• Available to both salaried and self-employed individuals
• Flexible tenure and lower interest rate as compared to a personal loan
• Tax benefits on the interest paid

Check Also: Loan Against Property EMI Calculator

Loan Against Land Interest Rates & Processing Charges

As the availability of Loan Against Land is rare, with only a few of the providers, refer to the table below to check the interest rates for Loan Against Property offered by the leading providers.
Note: You can connect with your preferred provider to check availability of Loan Against Land.

Bank	Loan Against Property Rate	Processing Fee
Citibank	8.53% onwards	0.75% of the loan amount
SBI	9.35% onwards	1.00% of the loan amount
Kotak Bank	9.50% onwards	1.00% of the loan amount
HDFC	9.65% onwards	0.25% of the loan amount
IndusInd Bank	9.95% onwards	2.00% of the loan amount

Check Also: Compare Mortgage Loan Rates from Top Providers

Loan Against Land Eligibility Criteria

Here are some of the pre-requisites to be eligible to apply for a Loan Against Land.

Age	Minimum:21years Maximum: 70 years
Nature of Work	Salaried and Self-Employed individuals
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.

Check Also: Loan Against Property Eligibility Calculator

Loan Against Land Documents Required

The documents required for availing a mortgage loan depend on the nature of occupation of the applicant. The table below shows the list of documents for both salaried and self-employed individuals.

Salaried Individuals	Self Employed
Duly signed application form with photograph(s)	Duly signed application form with photograph(s)
Identity proof, address proof and age proof	Identity proof, address proof and age proof
Salary slips of last 3 months	Financial statements, including balance sheet, profit and loss account statements
Bank statements	Bank statements
Latest Form-16 and Income Tax Return (ITR) details	Income Tax Return (ITR) details of the last 3 years
Title documents of the property	Title documents of the property
Proof of total work experience	Business existence proof

Click To Check Detailed Loan Against Property Documents List

How to Apply for Loan Against Land

Customers can apply online for Loan Against Land through Paisabazaar.com by simply following the below-mentioned steps.

• Go to Loan Against Property section at 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.

FAQs

Q1.  Is it mandatory to have a co-applicant for availing Loan Against Land?
A co-applicant for a loan against land is generally not required. However, if there are multiple owners of the land, it is mandatory to include them all as co-applicants.

Q2. How is the value of land calculated?
The market value of land is estimated in terms of money that it can raise if it is sold at prevailing conditions.

Q3. What is the maximum loan tenure available?
The maximum tenure offered goes up to 20 years. However, this may vary from one lender to another.