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

    • LIC Housing Home Loan
      "Low responsibility "
      0.5 3.0/5 "Satisfactory"
      From LIC, I had taken RS 23 lakhs as a home loan with a fixed rate 11.25%, LIC service initially was good and then they responded like GOVT staffs not like a corporate staff, the response from LIC staff was not good.
      Was this review helpful? 0
      , visakhapatnam
      Reviewed on Aug 18, 2017
    • Bank Bazaar Customer Support
      "Loan Application with Axis Bank"
      0.5 3.5/5 "Pretty good"
      The way application is presented is quite easier to fill in the details. The details to be filled in was quite general which includes the bank details and Aadhar offcourse PAN card also but the good thing is even if one document is not ready it can be produced later
      Was this review helpful? 0
      , chennai
      Reviewed on Aug 18, 2017
    • SBI Home Loan
      "Needs improvement when it comes to service"
      0.5 5.0/5 "Blown Away!"
      Everything is fine, however they have a very lenghty process I was made to visit the branch for each and every thing. Otherwise I am happy with the customer service however they are not doing good when it comes to overall service
      Was this review helpful? 0
      , bangalore
      Reviewed on Aug 18, 2017
    • LIC Housing Home Loan
      "Looking for a better interest rate and customer service"
      0.5 3.0/5 "Satisfactory"
      LIC Housing Finance has sanctioned the home loan for the residential property based on my salary, they offered me the loan amount of Rs.15 lakhs for the tenure of 20 years. Interest was on the higher side than SBI and Hdfc, LIC housing provided me 10.5%, I hope they will revise and apply the new rate of interest from September onwards. Their customer service is not upto the mark, I would like to suggest them to improve on it. I am planning to do balance transfer shortly.
      Was this review helpful? 0
      , kolkata
      Reviewed on Aug 18, 2017
    • Punjab National Bank Home Loan
      "PNBHFL Review"
      0.5 1.5/5 "Bad"
      Not a good experience. No proper communication once loan agreement is signed. One of the disbursement got 1 month late for which late payment charges was applied to me. I have got sanctioned loan of 34 lacs and policy was included with 1.5 lacs amount saying that its free of cost. But this amount got added to total loan amount ie 34 + 1.5 total 35.5 lacs. So I will be paying return on 35.5 lacs.
      Was this review helpful? 0
      , thane
      Reviewed on Aug 17, 2017
    • LIC Housing Home Loan
      "Very good service"
      0.5 4.0/5 "Great!"
      I have got the Housing loan from LIC housing loan. They have disbursed my loan within 15 to 20 days. The response they gave was very good in regards to my home loan application. The rate of interest was comparatively equal with the other banks with LIC HOUSING FINANCE.
      Was this review helpful? 0
      , kota
      Reviewed on Aug 17, 2017
    • LIC Housing Home Loan
      "Very good service"
      0.5 4.0/5 "Great!"
      I have got the Housing loan from LIC housing loan. They have disbursed my loan within 15 to 20 days. The response they gave was very good in regards to my home loan application. The rate of interest was comparatively equal with the other banks with LIC HOUSING FINANCE.
      Was this review helpful? 0
      , kota
      Reviewed on Aug 17, 2017
    • Citibank Home Loan
      "Good overall"
      0.5 4.0/5 "Great!"
      Citibank has been good in the home loan services and to get this loan through, it was a easy task. I never faced any inconvenience to get the disbursement and even after the loan was disbursed. The interest rate and charges are also normal. Services are good in all.
      Was this review helpful? 0
      , pune
      Reviewed on Aug 16, 2017
    • SBI Home Loan
      "Home loan"
      0.5 5.0/5 "Blown Away!"
      Thankfully SBI has offered this housing loan to me. Being a joint account holder, I am very much happy in taking the housing loan, my income was very less but they some how helped us which is the best part. Special efforts were actually taken by them they suggested stating that they can offer the loan by clubbing wife and husband's income so that we can take the loan easily . I am happy with the rates offered as it was floating . To conclude, I am completely happy with their service.
      Was this review helpful? 0
      , ernakulam
      Reviewed on Aug 16, 2017
    • HDFC Limited Home Loan
      "Not Good"
      0.5 1.0/5 "Really Bad"
      I had gone through some issues with HDFC limited when I was taking the home loan. Because, they made me to pay for 3 EMIs. Which is not at all required. I felt that I had paid some more charges as a processing fee and other irrelevant charges. Even I do not have any property insurance, but they had forced me to pay for insurance. I am not at all happy with HDFC Limited.
      Was this review helpful? 0
      , mumbai
      Reviewed on Aug 16, 2017
    • SBI Home Loan
      "Need an improvement"
      0.5 1.0/5 "Really Bad"
      In the market other banks are providing home loan to a gram panchyat property but SBI is not providing the home loan. My property located in Channanagar at Hyderabad but SBI have rejected my application, their loan norms are very strict and they asking lot of documents with heavy paper works.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Aug 16, 2017
    • ICICI Bank Home Loan
      "Very Good service"
      0.5 5.0/5 "Blown Away!"
      I have applied Home loan with ICICI bank. They are fast in their process, they fixed an appointment to collect the documents after that they told the required documents were missing so that was the reason I haven't proceed with ICICI bank. The rate of interest is low when compared with others banks.
      Was this review helpful? 0
      , bangalore
      Reviewed on Aug 16, 2017
    • Bank Bazaar Customer Support
      "Good "
      0.5 5.0/5 "Blown Away!"
      It was a good experience, I enjoyed it and I will let other customers also know more about bankbazaar and I will also refer the same process to others to get the loan . Hope further things will also be smooth and processing fees should be made less by Hdfc bank .
      Was this review helpful? 0
      , kanpur
      Reviewed on Aug 14, 2017
    • Bajaj Finserv Home Loan
      "Very good services"
      0.5 5.0/5 "Blown Away!"
      My home loan was approved within minutes by Bajaj Finserv. The customer services are good and the overall experience was nice. I been a very long time customer of this company and I have always got the best of services. The interest and rate and charges are normal.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Aug 14, 2017
    • Bank Bazaar Customer Support
      "For home loan"
      0.5 4.5/5 "Excellent!"
      It's very easy to process the home loan ,I am very satisfied with bank bazar app ,very good. Customer care service is very helpful and quick service was provided with in 24 hours ,it's really good and comfortable service that I received from bank bazar.com Thanku bankbazr
      Was this review helpful? 0
      , kolkata
      Reviewed on Aug 13, 2017
    • HDFC Limited Home Loan
      "Poor Service"
      0.5 1.5/5 "Bad"
      Very poor service. They claim to be transparent on the process and commitment , however, have a very poor support. @Sector 62, Noida branch. Till the time processing fees is not encashed, all is good, after , complete turn around on the attitude and response. You can be even cheated after commitment done.
      Was this review helpful? 0
      , gurgaon
      Reviewed on Aug 13, 2017
    • Bank Bazaar Customer Support
      "Excellent service"
      0.5 4.0/5 "Great!"
      Bankbazaar provides complete service. The comparability option is very good in bank bazaar website, I would say it helps to choose the best product in the market. The website of bank bazaar is easy to use and user friendly, I am happy with bank bazaar service.
      Was this review helpful? 0
      , pune
      Reviewed on Aug 12, 2017
    • SBI Home Loan
      "Excellent service"
      0.5 4.0/5 "Great!"
      The Overall process was very good from SBI home loans, The executives are really good and they were updating me the status on time to time. They have disbursed my loan within 2 weeks of time. I am happy with the loan amount . The rate of interest is nominal with SBI. I am satisfied with the SBI service.
      Was this review helpful? 0
      , pune
      Reviewed on Aug 12, 2017
    • review Home Loan
      "Better service"
      0.5 5.0/5 "Blown Away!"
      Got home loan from Equitas housing finance. They have approved the loan amount around Rs,10lakhs based on my documents, they have promised that they will release the documents to make the account as current account. The rate of interest is high when compared with others.
      Was this review helpful? 0
      , dindigul
      Reviewed on Aug 12, 2017
    • Axis Bank Home Loan
      "Very worst service"
      0.5 1.0/5 "Really Bad"
      I have applied home loan with Axis bank , they told that I am eligible to get loan upto 12lakhs but I have asked only 10lakhs, Axis bank has sanctioned my loan, But they never released the loan amount, by saying that I had back log with ICICI bank.
      Was this review helpful? 0
      , dindigul
      Reviewed on Aug 12, 2017
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    Plot Loans is Rated as "Great!" by 22942 Users

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    Home Loan BYTES FROM OUR KITCHEN

    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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