Banks operating in the country offer plot or land loans to eligible applicants. The loans can be availed to buy a residential plot where you can build your dream home. They are provided at attractive rates and can be repaid in affordable EMIs with the maximum repayment tenure going up to 25 years. Read on to know more about plot loans.
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.
Plot Loan EMI Calculator
Using an EMI calculator will help you in knowing the amount which needs to be paid as EMI once you avail the plot loan. All you need to do is enter the loan amount, tenure in months, the interest rate and the processing fee and click on ‘Calculate’.
What is Plot Loan?
Plot loans are a unique banking product designed to facilitate the purchase of a plot of land. Also known as land loans, it is often confused as being same as a home loan. 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.
What are Benefits of Taking Plot Loan?
Some of the benefits of availing plot loans are listed below:
Can be availed for purchase of residential land
Attractive interest rates
Affordable repayment tenures
No pre-payment penalty
Processing fee is low
Tax benefit under Section 24 and 80C of Income Tax Act
What is the Eligibility Criteria for Plot Loan?
The eligibility criteria which needs to be fulfilled in order to avail a plot loan are listed below:
What are the Documents Required to Apply for Plot loans?
Listed below is the list of basic documents which you will need to furnish while applying for a plot loan. The documentation requirements are subject to change depending on the eligibility criteria laid down by different lending institutions.
Duly filled Application form
Proof of Identity
Proof of Residence
Most recent salary slips
Bank statement for the last 6 months
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.
Tax benefits on plot loans can be availed only if you construct a house on the plot. The tax deductions can applicable only when the construction is completed. As per Section 80C of the Income Tax Act, you can avail deduction on the principal repayment component up to a maximum of Rs.1.50 lakh per annum.
You can also get tax benefits on the interest portion of the loan under Section 24 after construction of the house is completed and you start residing in the house. Under Section 24 of the Income Tax Act, you are eligible for an annual deduction of Rs.2 lakh. However, to avail that you need to convert the plot loan into a regular home loan.
In addition to this, you need also avail interest rate deduction and reduced interest rates for pre-construction.
What are the differences between Plot Loan and Home Loan?
Plot loans are available for only a residential plot unlike home loans which are available on all properties.
The maximum Loan to Value (LTV) when it comes to plot loans is stipulated at 70 percent. For home loans, the LTV can go up to 90 percent in some cases.
Non-Resident Indians (NRIs) are not offered plot loans by most banks operating in the country
Compared to home loans, the repayment tenure for land loans is lower.
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I have taken home loan from ICICI Bank, my loan was sanction on time and its going to be disbursed soon. The amount of the loan is 18 lakh . the bank informed me that for construction plan I have to pay for 3 lakh. The interest rate is 8.65% but the bank will be reducing the rate by 1.5% from next month.
I have taken INDUSIND home loan because my friend suggested it to me.The tenure of the loan is for 17 years with an interest rate of 11.5%. For submission of documents i have to run up and down apart from that it was fine.But it would have been good if the procedure is little short and not to deduct any installment from account without clearing the check first.
Before 4 years ago, purchased my home loan from LIC Housing finance. Due to the low interest rates, i have selected LIC Housing. Taken the loan amount of Rs. 14 lakhs and i am paying the EMI amount of Rs. 12940 per month. Total duration of the loan is 15 years.
I have taken home loan directly through Tamilnad Mercantile Bank.The rate of interest and the processing fee was high .This loan was sanctioned on time and i have uploaded the documents through online . The service was average according to my concern.
I have taken home loan directly through SYNDICATE BANK. The rate of interest and the processing fee was nominal.This loan was processed on faster basis without any hassles.They gave a clear picture about the loan process .There was proper notification from bank end and i am satisfied with the service .
I hand applied for the Home construction loan @ Rabakavi Branch, Karnataka. We provided all the legal & Income documents. Loan got approved but they dragged it for 4 Months for the final steps and did not disburse finally saying legal issues which are absurd.
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, rabkavi banhatti
Reviewed on Mar 14, 2020
Long back ago, i have taken the home loan from GIC Housing finance. Its because of the immediate process, i have selected this bank. Interest rates were normal because it was 8.35%. I bought the loan amount of Rs. 2.5 lakhs and the documentation process was hassle free. I have chosen a duration of 10 years to close this loan. I have already close the loan 5 years before and they have given me a NOC letter also.
I have taken home loan directly through SBI .The rate of interest was nominal and this loan is still active .Everything was good to me when availed this loan .The loan process was clearly shared by the agent .I am really satisfied with the service . Without any hassles got this loan.
At an Initial I took home loan from DHFL on sudden from their end transferred the process to INDIA BULLS without any intimation. But one issue was faced that my documents not submitted to INDIA BULLS hence I have submitted again. The amount sufficient was fine. EMI need to pay of 36K. The rate of interest is started with 8.35% gradually increased hence on last months was 8.90%. Their service is not good coordination with me.
If any of the builder suggest to go for this bank don't ever go for it... For every 6 months they increase the ROI even RBI is decreasing... Pre closer is a hell for me ...bi have provided a cheque after 15 days they started processing the request to close... From my pocket I paid 30000 rs extra for closing...
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Ashok Kumar NV
Reviewed on Mar 11, 2020
I took home loan from INDIA BULLS, some people suggested to take a loan from this bank so chosen it. They have sanctioned the loan amount of 15L with tenure period of 15 years. Rate of interest is nominal. EMI need to pay of 17K. The processing fee is applicable. Since I am going to buy a plot so taken this loan offer.
My home loan was taken from LIC Housing because their processing time and charges are less but interest rate is little bit high when i compared to other Government banks. They have taken 1 week to sanctioned the loan. Documentation process is as usual like other banks. They have provided me a interest rate of 8.45%.
I have taken home loan directly through Union Bank Of India .The rate of interest and the processing fee was nominal and submitted documents through the agent ,This loan is still active and i have taken this loan for home construction. There are more hidden charges which was informed later this was the only issue. I have been informed that will receive Rs.7000 to 8000 due to good credit score but it was not happened.
HDFC people guided to take Pradhan Mantri scheme for the home loan. The amount was sanctioned of 25L and subsidiary amount of 2.67L. The tenure period of 20 years. An interest rate was fine of 8.5%. Pre closure is applicable with nominal charge. The process was good hence they have sanctioned the loan within 20 days. EMI need to pay of 22413 rupees.
From LIC, they offered a home loan and the loan amount was Rs. 27,00,000. The rate of interest was high 9.15% with the duration period of 20 years and i am paying EMI of Rs.24,000 and they given this loan very faster . LIC have a good customer service.
I got home loan offer from HDFC Limited on one year back. I applied via online, the amount was sufficient with tenure period of 15 years. The rate of interest is moderate. I took this loan to buy an apartment. EMI need to pay of 36K. Pre closure is applicable but there is locking period of 6 months. Their service is good.
I have taken home loan directly through Hdfc Ltd.The rate of interest and the processing fee was nominal.This loan was processed on faster basis without any hassles.The agent gave a clear picture about the loan process .There was proper notification from bank end and i am satisfied with the service .
I took home loan from MAGMA HOUSING FINANCE on 6 months back , the loan duration of 20 years for the amount of 18L. The amount was sanctioned by one month. To buy the flat taken this loan. EMI need to pay of 15,600 rupees. There is pre closure is applicable. The customer service is good.
I bought my home loan from Fullerton but an interest rates are high. In the call centre, there is no proper response for any kind of inquiry and if I sent a mail only they will send the reply after 48 hours. They have sanctioned the loan amount of Rs. 10L and they have not provided the loan as per their committed time.
In HDFC, they were forcing me to taking a home insurance when i availed my home loan. Its just because of my landlord person since he was having their existing loan with HDFC hence have continued the same. They have offered me an interest rate of 9.25% and i need to pay the EMI amount of Rs. 10000 for the loan amount of Rs. 10 lakhs.