Yes, Non Resident Indians are eligible for plot loans from banks in India. You can also approach a bank with which you have an existing relationship or fixed deposits or other investments. You can also approach the bank for a loan after improving your credit score, which can be done by clearing your past debts. However, if you have bad credit, you can still hope to get a land loan sanctioned from a bank by taking a joint home loan with a spouse as your co-applicant, providing your spouse has a high credit score and a regular source of income. How can I get a land loan with bad credit?Ī good credit score is essential to get quick and hassle-free approvals for land loans.This gives the borrower the freedom to apply for tax benefits on the home loan as plot loans do not qualify for any tax deductions.
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. Banks usually have a timeframe within which the residential property has to be completed on the purchased land. 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.
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Get Checklist: Documents Required for Home Loan How to Get Tax Exempted from Plot Loan? Tax receipts for taxes paid by the landowner.Layouts / drawings of the plot, duly approved by the Town Planning Authority.‘No Encumbrance’ Certificate for the plot.Original documents pertaining to ownership of the land.The documentation requirements are subject to change depending on the eligibility criteria laid down by different lending institutions.Īdditionally, you may also be required to provide the following documents pertaining to the land. Listed below is the list of basic documents which you will need to furnish while applying for a plot loan. What are the Documents Required to Apply for Plot loans? Should be between 18 and 65 years of age.Should be a salaried or self-employed applicant.The eligibility criteria which needs to be fulfilled in order to avail a plot loan are listed below: What is the Eligibility Criteria for Plot Loan? Tax benefit under Section 24 and 80C of Income Tax Act.Can be availed for purchase of residential land.Some of the benefits of availing plot loans are listed below: The difference between plot and home loans is that a plot loan can be availed for the purchase of the land where the house will be constructed later. Also known as land loans, it is often confused as being same as a home loan. Plot loans are a unique banking product designed to facilitate the purchase of a plot of land. All you need to do is enter the loan amount, tenure in months, the interest rate and the processing fee and click on ‘Calculate’. Using an EMI calculator will help you in knowing the amount which needs to be paid as EMI once you avail the plot loan. Note: The EMI is calculated after considering the loan amount to be Rs.1 lakh, tenure being 120 months and the interest being the lowest as mentioned in the table above. Compare: Home Loan Interest Rate all Banks
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