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Normally, it takes no longer than a week for your application to be approved. You should be a minimum of 18 years old and less than 70 years old. A plot is a good investment that grows in value over the long-term.
Besides, the upper age limit on loan receivers is 65 years. You will also need to be employed, but you could either be a salaried employee or be self-employed to fulfill this requirement. Banks charge floating rate of interest on the term-loan. The interest rate is added to the EMI that starts from the next month of the loan disbursement.
Planning to Take a Plot Loan? Some Important Rules You Need to Know
You can get competitive land loan interest rate options with us. You can shift your plot loan to ICICI HFC with our Balance Transfer facility and join the ICICI HFC family. The principle of a house loan is deductible under Section 80C of the Tax Act. Under this act, you are eligible for tax benefits on the principal repayment amount on a home loan.
Plot loans are approved only for the purchase of a residential plot of land and if the borrower has definite plans of building a house on the plot of land. Banks usually have a timeframe within which the residential property has to be completed on the purchased land. However, once the house has been completed, the completion or occupancy certificate can then be submitted to the bank after which the plot loan will be converted into a regular home loan.
Property related documents
SBI Home Loan is excellent because I've a salary account with them. They offered me a interest rate of 9.5% approximately. I took the loan amount of Rs. 23 lakhs so far i have got only Rs. 16 lakhs since my building is under construction. In SBI interest rate and external charges are less when compared to other bank, so that I have selected the home loan from this bank. I got the loan in the year of 2011 and i have chosen the duration of 15 years but i have done a pre-closure without paying any additional charges. I bought the loan amount of Rs. 12 lakhs with the low interest rate of 10.25%.
Historically Indians are purchasing lands or plots for various purposes predominantly as an investment. A Land loan or plot loan is a loan provided by banks to borrowers for the acquisition of a plot of land. The repayment is completed in Equated Monthly Instalments within a particular tenure prescribed by the bank. Buying a plot or house of land on which to build one, can both seem to be equally confusing. A lot of the issues you face will be the same in both cases. But, the kind of loan you take out can be specific to the purpose.
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You can calculate the monthly EMI by using our EMI calculator. All you have to do is enter your loan amount, interest rate, and repayment tenure. You can use it to purchase land so you’ll build upon it in the future. While home loans can have tenures of up to 30 years, plot loans extend only up to fifteen years. One of the restrictions on plot loans in India is that they can’t be used to purchase agricultural land. Apart from that, it’s fairly easy to apply and acquire approval for a plot loan.
As the name suggests, it is a loan for buying plotwhere you plan to construct a house in the future. You can avail of these loans at affordable interest rates and repay it through easy EMIs for a tenure of your choice. Whether your need is big or small, we finance them all. You can get a plot loan of up to Rs 1 crore to purchase a vacant plot for construction of a residential house. The rate of interest for plot loans at PNB Housing starts at 9.75% p.a. The interest rates are floating rates which change with movement of the base rate during the loan tenor.
• Purpose and location of the property
We understand your needs are unique, and hence, we offer loan amounts varying Rs. 3-25 lakhs. Use our instalment calculator to choose a flexible repayment schedule for tenures raging up to 20 years. We have simple application and documentation processes to help you complete the formalities quickly. Where housing loans can be taken to purchase a house regardless of its type or location, land loans come with certain restrictions.
If you add your wife or mother to your home loan, you may be able to get a lower interest rate, even if they are not earning. The customer shall pay the premium amounts directly to the insurance provider, promptly and regularly so as to keep the policy / policies alive at all times during the pendency of the loan. To get more information, navigate to the"Apply for Loan"button that is present on the left side.
Senior citizens above 65 can also avail this loan on the condition that they repay the amount before turning 70. Another rule for availing of a loan for plot is to have definite plans to construct a house on that plot. The lender will grant the loan only if you promise to begin construction within a stipulated time period from the date of loan disbursement. I had taken a home loan with SBI bank about 5 years ago. Since I was holding a savings account process was smooth and done the process on time.
A plot loan is a unique banking instrument that makes it easy to buy land. It is also known as a land loan but is different from a home loan. The contrast between a plot loan and a home loan is that a plot loan can only be availed to buy land for constructing a house. Most lenders in India provide plot and land loans to qualified candidates. You can use them to purchase land in any area of your choosing.
Plot loans with fixed rate options are now rarely available in the market. A plot loan is a type of home loan that allows you to finance the loan for the residential plot. This is the land on which you will be able to build a dream home later. Plots can be purchased by direct allotment in real estate housing societies/projects or directly from development authorities. Myself approached SBI to apply for a home loan and taken the loan on 2016. The process was smooth and sanctioned with sufficient amount with tenure period of 20 yrs.
For instance, you may get a land loan only for residential purposes, not commercial use. Nearly 11 years before I had taken a home loan with STATE BANK OF INDIA which was processed directly to them.The loan amount was sufficient for the tenure period of 15 years. The rate of interest and processing fee are nominal. They have sanctioned a loan within few days and the process was good.
The amount that you can get on your plot loan application is determined by PNB Housing’s policies, your credit score, and your age. All these factors take into account your financial standing to enable lenders to gauge your repayment capacity. The LTV ratio is the percentage of the land loan that the lender will finance, with the rest paid by the borrower. My Father has taken a home loan with State Bank of India. There was no hassle on the loan process, the manager was clearly explained about the charges.
SBI realty home offers a concession on interest for women employees. The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned.
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