Paisa Express, with its strong and experienced team of consumer finance experts is here to help and assist you make personal finance decisions easy, transparent and convenient. We intend to simplify your decisions through technology and data innovations and information at your fingertips.

We at Paisa Express believe in an open and friendly environment and encourage free-flowing ideas, teamwork, and assistance at all steps. If you are looking for a land loan, we will help you choose the best lender.

Loan for Land / Plot Purchase
Traditionally Indians purchase lands or plots for various purposes predominantly as an investment. A plot is a good investment that grows in value over the long term. Hence, it gives better returns at the resale. A Land loan or plot loan is provided by banks to borrowers for the acquisition of a plot. The repayment of the loan will be in Equated Monthly Instalments (EMI) within a particular tenure prescribed by the bank.

Construction Loan/ Plot plus construction loan:
A Construction loan can be availed for construction of house on a piece of land already owned or it can be availed for purchasing a plot and construction of house on the same plot. You need to provide construction estimates from a certified engineer and banks fund up to 85% of the approved estimates. In case you want to purchase a land and construct a house on it banks will fund for the plot first and approve the construction loan after getting the approved sanction plan from the concerned authorities.

Different Types of Loan for Plot Purchase Land Loans can be undertaken by individuals/entities from the following

• Purchase of a plot can be directly from a Real estate developer/Development authority or a Housing society.
• Purchase of a plot through resale directly from individuals or through allotments from employers.

Pre-requisites for Loan for Plot Purchase

• The land or plot of your choice must be purchased strictly for non-agricultural purposes
• The lay out should be approved by the local authorities and must have relevant documents during the time of purchase.

Key Features of Loan for Plot Purchase

• Low -Interest Rates – Competitive interest rate that is the lowest in the industry
• Low Processing Fee – Don’t lose out on your loan amount in the form of the processing fee.
• No Pre-Payment Penalty – For all individual loans, you can complete the loan whenever you want without any penalty.
• No Hidden Charges – All the charges will be communicated upfront hence no hidden charges
• Interest charges on Reducing Balance – Interest charged only on Principal outstanding amount.
• The maximum repayment period could range between 10 to 15 years depending on the age.
• Some banks provide concession for women borrowers.

Land / Plot Loan Eligibility Check

• Before a person applies for a land loan it is always good to do an eligibility check which is available at Paisaexpress.com This way your credit score will not be affected as we will only soft pull your credit score and check with other internal criteria to make sure you are eligible.

Eligibility Criteria

The following are the eligibility criteria for Plot Loans
• Age: The minimum age requirement is 18 years while the maximum age at the time of loan completion is 70 years
• Loan Tenure: Most banks provide maximum tenures of 15 years but there are some banks that provide loan tenure of 30 years
• Loan Amount: You can get loans as per your income eligibility or max up to 85% of the property value.
• Interest Rate: The loan starts at 6.50%
• Processing Fees: It varies from bank to bank. In general, the processing fee will be 0.5% to 1%.
• Pre-Payment Charges: Nil

Documents Required for Land / Plot Loan

ID & Address Proof (Any One Required)

• Aadhaar card
• PAN card (Mandatory, if income is considered for loan eligibility calculation)
• Valid Passport
• Voter ID card
• Driving license
• Utility Bill: Electricity, Telephone, Post-paid mobile, water bill, etc.
• Ration card

 

Property Documents Required:

• Allotment letter if any
• Agreement of Sale
• Last 15 years link documents
• Last 15 years Encumbrance Certificate
• Copy of Approved Lay out
• Land Regularization Certificate
• Copy of Approved Municipal Sanction Plan in case of Construction loan
• Copy of Estimates from a certified engineer in case of construction loan