A "low interest" loan shouldn't mean you have very little interest in paying it back!
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  • Plot Loan Reviews

    • Punjab National Bank Home Loan
      "Be consistent in the details"
      0.5 1.0/5 "Really Bad"
      PNB housing finance was not a good one for me, though they were okay in the process. They have charged me 100% of the processing fees when I was supposed t be charged only 50%. I had to pay more than 11k. They need to be consistent in the whole process.
      Was this review helpful? 0
      , vadodara
      Reviewed on Sep 23, 2017
    • Bank Bazaar Home Loan
      "Satisfactory"
      0.5 4.0/5 "Great!"
      The services at Bankbazaar has been good and the experience is satisfactory. I faced no issues or inconvenience faced. The website is also good and it is very much informative and very easy to browse through and choose the best bank in the market.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Sep 23, 2017
    • Punjab National Bank Home Loan
      "Overall good"
      0.5 4.5/5 "Excellent!"
      PNB housing finance was very much cooperative and they collected my documents and processed my papers. The disbursement also happened as earlier as possible. The interest rate and processing charges is normal and the overall experience is perfect.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Sep 23, 2017
    • Bank of India Home Loan
      "Fantastic"
      0.5 5.0/5 "Blown Away!"
      I am having the home loan with the Bank of India and their interest rate is around 8.9%. The loan amount got disbursed within specified time period, also I am really happy with the Bank of India for my home loan disbursal.
      Was this review helpful? 0
      , mumbai
      Reviewed on Sep 23, 2017
    • Bank Bazaar Home Loan
      "GOOD SERVICE"
      0.5 4.0/5 "Great!"
      It was a very good service from Bankbazaar ,everything was fine from Bankbazaar service ,even the customer service and the representatives were very helpful and responsible during my loan process they explained everything regarding my loan process.Bankbazaar website was also user friendly. friendly.Overall service was good from Bankbazaar.
      Was this review helpful? 0
      , chandigarh
      Reviewed on Sep 23, 2017
    • ICICI Bank Home Loan
      "WORST SERVICE"
      0.5 1.0/5 "Really Bad"
      It was a worst service from ICICI ,I got only one call from their representatives after that there was no proper response from ICICI representatives . They didn't give any proper information's regarding interest rate ,overall I am not happy with the service of ICICI.
      Was this review helpful? 0
      , chandigarh
      Reviewed on Sep 23, 2017
    • Bank Bazaar Home Loan
      "GOOD SERVICE"
      0.5 3.5/5 "Pretty good"
      The Service was very good from Bankbazaar , I got lot of options from Bankbazaar for my loan process . Even the response was very good ,I checked Bankbazaar website which was easy to use and user friendly overall it was an good experience from Bankbazaar.
      Was this review helpful? 0
      , bangalore
      Reviewed on Sep 23, 2017
    • HDFC Limited Home Loan
      "GOOD SERVICE"
      0.5 3.0/5 "Satisfactory"
      It was a very good service from HDFC ltd,response was very good from their representatives ,helpful customer service .Their interest rate was high compared to market value ,overall it was a good service from HDFC ltd for my loan process .
      Was this review helpful? 0
      , bangalore
      Reviewed on Sep 23, 2017
    • Bank Bazaar Home Loan
      "GOOD SERVICE"
      0.5 3.5/5 "Pretty good"
      The Service was very good from Bankbazaar , I got lot options from Bankbazaar for my loan process . Even the response was very quick ,I checked Bankbazaar website which was easy to use and user friendly overall it was an good experience from Bankbazaar.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Sep 23, 2017
    • ICICI Bank Home Loan
      "GOOD SERVICE"
      0.5 4.0/5 "Great!"
      It was a good service from ICICI ,very helpful and responsible representatives from ICICI during the loan process . I had personal issues so I postponed my loan plan for next year also their interest rate was also 8.4 which was high ,still the overall service was good from ICICI .
      Was this review helpful? 0
      , hyderabad
      Reviewed on Sep 23, 2017
    • HDFC Limited Home Loan
      "GOOD SERVICE"
      0.5 4.0/5 "Great!"
      It was a excellent experience with hdfc ltd for the home loan. They have explained everything very clearly to me. The process took some days not sure about it. I also got a good rate of interest at that time 8.75%. And also a processing fee was charged nominal I had taken it for 20 years but I pre closed it later.
      Was this review helpful? 0
      , mumbai
      Reviewed on Sep 23, 2017
    • ICICI Bank Home Loan
      "GOOD SERVICE"
      0.5 4.0/5 "Great!"
      I have taken home loan from ICICI bank. The approved loan amount from the bank is 15 lakhs with a rate of interest of 10.75%. I am satisfied with the rate of interest as the promise to give me in that rate and the processing fees was bit high with ICICI bank,processing fee was normal. Tenured is for 20 years i have taken.
      Was this review helpful? 0
      , kharagpur
      Reviewed on Sep 23, 2017
    • Allahabad Bank Home Loan
      "GOOD SERVICE"
      0.5 3.0/5 "Satisfactory"
      The loan amount which ALLAHABAD BANK offered me was good. The customer services and representatives where very helpful. They contacted me and informed me the details. I was fine with the interest rate which was 8.5. Overall I can say it was good service.
      Was this review helpful? 0
      , kolkata
      Reviewed on Sep 23, 2017
    • Bank Bazaar Home Loan
      "EXCELLENT SERVICE"
      0.5 5.0/5 "Blown Away!"
      The Service was very excellent from Bankbazaar , I got lot of options from Bankbazaar for my loan process . Even the response was very excellent from their representatives ,I checked Bankbazaar website which was easy to use and user friendly overall it was a excellent experience from Bankbazaar service.
      Was this review helpful? 0
      , kolkata
      Reviewed on Sep 23, 2017
    • Punjab National Bank Home Loan
      "EXCELLENT SERVICE"
      0.5 5.0/5 "Blown Away!"
      It was an very good service from PNB ,during my loan process the representatives of PNB was very helpful and very responsible representatives . But I was little busy with my personal issue ,even with a interest rate it was fine so I can say overall it was a excellent service.
      Was this review helpful? 0
      , kolkata
      Reviewed on Sep 23, 2017
    • Bank Bazaar Home Loan
      "EXCELLENT SERVICE"
      0.5 5.0/5 "Blown Away!"
      The Service was very good from Bankbazaar , I got lot options from Bankbazaar for my loan process . Even the response was very quick ,I checked Bankbazaar website which was easy to use and user friendly overall it was an good experience from Bankbazaar.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Sep 23, 2017
    • ICICI Bank Home Loan
      "GOOD SERVICE"
      0.5 4.0/5 "Great!"
      It was an very good service from ICICI ,response was very good from their representatives ,helpful customer service . Even their interest rate was also fine it was low compared to others ,overall it was an good service from ICICI .
      Was this review helpful? 0
      , hyderabad
      Reviewed on Sep 23, 2017
    • Bank Bazaar Home Loan
      "EXCELLENT SERVICE"
      0.5 5.0/5 "Blown Away!"
      Service was very good from Bankbazaar , I got lot options from Bankbazaar for my loan process . Even the response was very quick ,I checked Bankbazaar website which was easy to use and user friendly overall it was an good experience from Bankbazaar.
      Was this review helpful? 0
      , new delhi
      Reviewed on Sep 23, 2017
    • Punjab National Bank Home Loan
      "EXCELLENT SERVICE"
      0.5 5.0/5 "Blown Away!"
      The loan amount which PNB housing finance offered me was not sufficient. So I cancelled my plans in taking the home loan. Else the customer services and response was good. They contacted me and informed me the details. I was fine with the interest rate and charges. Overall I can say it was excellent service.
      Was this review helpful? 0
      , new delhi
      Reviewed on Sep 23, 2017
    • Bank Bazaar Home Loan
      "GOOD SERVICE"
      0.5 4.0/5 "Great!"
      Service was very good from Bankbazaar ,customer service of Bankbazaar was very good and responsible. I even have checked with Bankbazaar website which was user friendly I like most in Bankbazaar is I can check my credit profile through Bankbazaar website which was very useful for me ,so overall it was an good service from Bankbazaar .
      Was this review helpful? 0
      , chennai
      Reviewed on Sep 23, 2017
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    Plot Loans is Rated as "Great!" by 23759 Users

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    Home Loan BYTES FROM OUR KITCHEN

    Plot Loans

    Plot Loan:

    In India, purchase of land has been one of the age old forms of investment. Conventionally, investors are inclined towards purchasing property either as an investment for future resale or for building a house. So, in case you’re planning to purchase a piece of land or vacant plot, a plot or land loan might be the right choice for you.

    What is a Plot Loan?

    Plot loans, also known as land loans, are a unique banking product designed to facilitate the purchase of a plot of land. A plot / land loan may often be confused with a home loan, as the latter also concerns the purchase of an existing / construction of new flat or house. However, land loans too addresses a similar need, with the prime difference that they are availed for the purchase of the land on which construction has to be carried out subsequently.

    Perfect Home Loan Deals for you

    While home loans may be obtained with relative ease, a land loan might not be as easy to get. The reason behind this being, land loans concern not only the purchase of land but also the subsequent development of property on the land. When it comes to land loans, lenders operate at a higher risk, as land loans carry significantly higher risk, as compared to home loans. Here, the lender requires assurance about returns on the investment. For this reason, if you wish to up your chances of obtaining a land loan, it would be beneficial if you can provide adequate assurance to the lender about your development plans on the purchased property.

    For lenders, an undeveloped property is a greater risk than a developed property, as it is much easier for the landowner to dismiss an undeveloped property rather than a property which will be utilized as a source of income. For example, if you wish to obtain a land loan for farming purposes, your chances of getting the loan might be higher, as compared to someone, who wishes to purely to purchase the property, but does not have any concrete plans on its development.

    In India, several leading banks like ICICI, Axis Bank, HDFC Bank, Punjab National Bank, IDBI, Federal Bank, etc. offer plot loans to customers for the purchase of land.

    Features & Benefits of Plot / Land Loans:

    Plot/land loans have been around for a while and are accompanied by a distinct set of features. Listed below are some of the notable features and benefits of land loans.

    1. Location & Type of Property:

      While home loans are available for all kinds or types or properties, a land loan may only be availed for the purchase of a residential plot. Another limitation in availing a plot loan is that the land in question must be located within the limits of the respective municipality or corporation. A plot loan is usually taken for the purchase of land with the idea of constructing a house.

    2. Loan to Value Ratio (LTV):

      Loan to value or LTV basically implies to the amount of loan you can get against a property. While the LTV ratio for home loans may be anywhere between “80% to 85%, for plot loans it is significantly lower and could be capped at a maximum of 70% of the land value. So, if you are considering taking a plot loan to purchase land and construct a house thereupon, expect to bear about 30% of the total cost of the land.

    3. Tax Benefits:

      Contrary to popular belief, a land loan will not fetch you any tax benefits. You may however, avail tax benefits on a land loan, only if you plan to construct a house on the plot in the near future. In this case, the tax deduction will only be applicable on the construction amount of the loan and after the completion of the construction.

    4. Tenure:

      Compared to home loans, which usually carry longer tenure, a land loan is accompanied by a relatively shorter tenure. While the tenure for home loans may stretch up to a period of 30 years, the maximum available tenure for a land loan may stretch from 15 - 20 years.

    5. Loan Amount Limit:

      Plot loans offered by banks are often accompanied by a fixed upper limit. You may take the loan only up to a certain limit, as specified under the policy. Like other loans, different banks may carry different upper limits when it comes to land loans, so you must find out which suits you best based on your financial requirements.

    6. Clauses Included:

      If you wish to opt for a land loan, do keep in mind, there are certain pre-requisites which you will have to observe. The most prominent clause of any land loan is that it requires the borrower to begin construction on the acquired plot of land within a specified period of time.

    7. Prepayment Charges:

      Since a plot loan is not the same as a home loan, it is very likely that the loan provider may charge a prepayment penalty. In order to be sure, do enquire with your loan provider about the same beforehand.

    8. Interest Rates:

      Like other types of loans, the interest rates on plot loans can also be floating or fixed, depending on the bank and the prevailing market conditions. However, interest rates on plot loans are relatively higher as compared to other types of loans like home loans or auto loans.

    9. EMIs:

      Home loans are usually characterized by shorter tenures and higher EMIs. This is for the reason that plot loans are sanctioned for a shorter duration as compared to most other types of loans. EMIs on plot loans are also dependent on a number of other factors like the repayment capacity of the borrower, borrower’s age, etc.

    10. Down Payment:

      When it comes to land loans, down payments for them are usually higher. The loan to value ratio for land loans prevails around 70%, which means that the borrower would have to shell out around 30% of the plot value themselves.

    Eligibility:

    Land loans may be obtained by individuals who are residents of India and aged above 21 years. While NRIs also constitute a prominent part of property buyers segment in India, there are not many banks which extend plot loans to this category of individuals. Also, interest rates on plot loans might also be slightly higher for NRIs.

    Documents Required:

    Listed below is the list of basic documents which one may be required to furnish, in order to apply for a plot loan. The documentation requirements are subject to change depending on the eligibility criteria laid down by different lending institutions.

    1. Duly filled Application form
    2. Applicant’s photograph
    3. Proof of Identity
    4. Proof of Residence
    5. Most recent salary slip
    6. Bank statement for the last 6 months
    7. Form 16
    8. Cheque for loan processing fee

    Additionally, you may also be required to provide the following documents pertaining to the land.

    • Original documents pertaining to ownership of the land
    • ‘No Encumbrance’ Certificate for the plot
    • Layouts / drawings of the plot, duly approved by the Town Planning Authority.
    • Revenue receipts
    • Land records
    • Tax receipts for taxes paid by the landowner

    Plot Loan FAQ

    1. Will I get any tax benefits, if I take a plot loan?

      You may avail tax benefits on a construction loan, which forms a part of a plot loan. This implies that the loan combines the cost not only for purchasing the land but also to carry out construction on the purchased plot. A plot loan taken solely for the purpose of purchasing a plot or piece of land will not attract any tax benefit.

    2. I am a salaried individual. I wish to purchase a plot in order to begin construction of a house within the next 6 months. Am I eligible for a plot loan?

      Yes, you would be eligible for a plot loan, as the loan includes a clause which requires the borrower to begin construction of a house within a specified period of time.

    3. Can a plot loan be taken for purchasing agricultural or commercial land which is outside the city’s municipal or corporation limits?

      No, plot loans may only be taken for pieces of land which are located within the municipal limits and the land is meant for residential purposes.

    4. Does a loan for construction include the cost of labor and raw materials?

      Yes, a loan for construction will include both these costs.

    5. I am a self-employed Indian resident. Am I eligible for a plot loan?

      Yes, plot loans are also open to self-employed individuals who hold a healthy credit history.

     

    News About Home Plot Loan

    • YSR Congress Accuses State Government of Forcible Land Acquisition

      The YSR Congress accused the Andhra Pradesh government of coercing farmers to give up their fertile land under the garb of Land Pooling, also declaring that farmers are being denied their rightful compensation. Although the provisions for acquisition gave the government the go ahead after 90 percent of the villagers agreed, Bhumana Karunakar Reddy, a leader from the YSR Congress, criticized the government for acquiring land that overshot requirements. He further went on to say that farmers were threatened if they were unwilling to part with their lands. Mr Chandrababu Naidu has been accused of violating provisions of the Land Acquisition Act, 2013 and creating a massive land bank of 10 lakh acres through forcible land acquisition. It has been alleged that land has often been forcibly acquired for major projects in the capital region, the Bandar Port and Bhogapuram Airport.

      5th January 2017

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