Banks in India offer a plot loan or land loan to people seeking to buy a piece of land. Individuals avail land or plot loans from a housing board, a real estate development company or via real estate agents. Buying a piece of land has always been a good investment option as the value of land generally appreciates over a period of time. Plot loans are a specialized or unique banking product designed and tailor-made to facilitate the purchase of land plots. They are often confused with home loans.
Want to know more on Home Loans? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.
Plot loans are cheap vis-a-vis home loans. Plot loan interest rates range from 8.70% to 12% a year. They come with minimal processing fees starting from 0.35% to 0.50% of the loan amount sanctioned. No pre-payment penalties are imposed by a majority of banks on plot loans. They are offered for a shorter tenure unlike home loans. Women borrowers get rebates or concessions on land plot loans. The loan to value ratio or LTV ratio is reasonable for plot loan borrowers.
Loan borrowers should have a good credit score in order to minimize the possibilities of loan rejections or get better deals. A credit score is a three-digit number that describes the loan repayment capabilities of an individual. Age is another influencer. The minimum age is 21 in most cases. The biggest factor impacting the sanctioning of plot loan applications is the annual income of the borrower. It in turn decides the loan tenure. For example, an individual with a good yearly income may opt for a shorter loan tenure to reduce the interest rate burden.
See Also: Home Loan Interest Rates Rising
SBI is a leading public sector bank in India and offers a huge array of financial products, including plot loans, for the benefit of consumers. One should have attained the minimum age of 18 years to avail a land loan from SBI. The loan is provided for a maximum term of 10 years. The maximum loan amount is set at Rs 10 Crore. SBI land loans have been clustered into 2 categories: 1) SBI realty loans and 2) agricultural land purchase schemes.
See Also: How to Select the Best Home Loan?
HDFC is a renowned brand among home loan buyers in India. People can also avail plot loans from this leading bank.
Key features
See Also: How To Reduce Home Loan Interest Rates?
Loan Amount |
Interest Rates |
Up to Rs 30 Lakh for women |
8.55-9.0% |
Up to Rs 30 Lakh for others |
8.60-9.10% |
Above Rs 30 Lakh for women |
8.85-9.35% |
Above Rs 30 Lakh for others |
8.90-9.40% |
Up to Rs 75.01 Lakh and above for women |
8.90-9.40% |
Up to Rs 75.01 Lakh and above for others |
8.95-9.45% |
Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.
Have a complaint against any company? IndianMoney.com's complaint portal Iamcheated.com can help you resolve the issue. Just visit IamCheated.com and lodge your complaint. If you want to post a review on any company you can post it on Indianmoney.com review and complaint portal IamCheated.com.
Be Wise, Get Rich.
This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.