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Investing in a plot of land has always been known as a prudent financial move in India. It offers you promising returns over long term. The investment Ave. Serves like a valuable asset and also holds a potential for a great appreciation in value. It makes it a great choice for you. Land or plot purchases have been a permanent choice among Indians for investment purposes owing to the perceived stability and the ever growing potential.
If you are looking forward to by a land in India, then there are several land loans or plot loans available for this purpose. You can get the loan for plot purchase in India. They are different from home loans which might just span up to 30 years. Plot loans just have a tenure of around 15 years. The tenure is completely short because of the unique nature of land purchases and the perceived quicker value appreciation associated with plots. One of the major restrictions of availing a plot loan in India is that you cannot use it for the purchase of agricultural land but for nonagricultural land the process of applying and obtaining the approval of plot law is completely seamless. You need to meet some criteria like being a minimum of 18 years old and under the age of 70.
We provide the best plot purchase loan so you can count on us. We will evaluate our eligibility based on different factors like income credit history and the specifics of the land being considered for the purchase.
The main purpose of plot purchase loan is to allow you to invest in land for future development or resale. Despite the plenty of limitations, the accessibility and relatively seamless process of acquiring plot loans make them really appealing option for you if you're looking forward to investing in nonagricultural land. You need to know that the plot loans are especially designed for the purchase of land, and they have unique features that distinguish it from the home loans in India. These features only serve the unique nature of the land purchase. It offers you specific terms and conditions customized to your requirements.
You need to know that the interest rate applicable to the not purchased loan and home loans is basically similar. But at times the banks might offer slightly higher rates for loans intended for land acquisition as compared to those for home purchase. The slight variance might be because of the basis point higher for land loans. Furthermore, banks might often set a timeline for the construction on the purchased plot. If you fail to initiate construction within the given timeline then the loans interest rate structure can transit from a home loan to a loan against property
The loan to value ratio signifies the proportion of the loan amount being sanctioned against your properties value. The loan to value ratio is generally lower if your land loan includes construction. It is capped at 70% of the Land's value. But at the same time for home loans the loan to value ratio can be around 75% to 90%.
Plot loans generally come with a short tenure of around 15 years unlike home loans that can offer you a long tenure of around 30 years. The equated monthly installment or the EMI for the plot loan is more than for the typical home loan. The tenure for a land loan is dependent on different factors like your age repayment capacity and of course other factors.
You must know that plot purchase loan does not offer any type of tax benefits unlike home loans where you can avail tax benefit reduction under section 8C for the principal repayment and under section 24B for the interest components. But if you construct a home on the purchased plot then you can claim tax deductions on the loan taken for construction after your construction is complete.
You can get floating rate loans and it does not attract any type of prepayment. But land loans are similar to home loans which might incur prepayment charges ranging from 2 to 4% of the prepaid amount if you are a non-individual entity. It is very important for you to review the loan agreement to understand the foreclosure charges before you finalize the agreement.
You need to know that a plot under construction loan combines the purchase of residential plot with the construction of your house within a specific time frame. If you fail to initiate construction within the designated time it might lead to an increase in the interest rate.
Pre-sanction charges include the fees for property inquiries verification of the legal ownership and the evaluation fees you need to know that the valuation fees determine the worth of the property and the eligibility.
Post sanction charges might be applicable, and it includes the processing fees, administrative expense and any other extra charges specified in the loan agreement after it is approved.
You need to understand the unique distinctions between plot loans plot plus construction loans and home loans. This will make it very easy for you to make the right decisions about the real estate investment and manage the expenses perfectly.
If you are looking forward to buying a vacant residential plot or land intended for future construction or investment purposes, then you need to look no further as you can always get a plot loan from us. Even though a plot purchase loan does not provide any type of tax benefits, but it is completely beneficial as the value of a plot is likely to increase in a short time. So, this is completely worth taking the risk and you should not think twice before connecting with us!
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