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.
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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.
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|
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.
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.