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

    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.


    Plot Loan Interest Rate 2021

    Banks Interest Rate (p.a.)
    SBI Plot Loans 6.75% - 7.30%
    HDFC Plot Loans 7.05% - 7.95%
    ICICI Bank Land Loan 7.00% - 7.80%
    Federal Bank Plot Loan 7.65% - 7.80%
    Shriram Housing Finance 8.90%
    PNB Housing Plot Loan 8.55% -10.55%
    Karnataka Bank Plot Loan 10.89%-12.09%
    Maharashtra Bank Plot Loan 6.95%-7.25%

    Compare: Home Loan Interest Rate all Banks

    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
    • Minimal documentation
    • 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:

    • Must be a resident Indian
    • Should be a salaried or self-employed applicant
    • Should be between 18 and 65 years of age
    • Compare: Plot Loan Eligibility

    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
    • Applicant’s photograph
    • Proof of Identity
    • Proof of Residence
    • Most recent salary slips
    • Bank statement for the last 6 months
    • Form 16
    • 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

    Get Checklist: Documents Required for Home Loan

    How to Get Tax Exempted from Plot Loan?

    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.


    1. Can plot loan be converted to home loan?

      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. Banks usually have a timeframe within which the residential property has to be completed on the purchased land. 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. 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.

    2. How can I get a land loan with bad credit?

      A good credit score is essential to get quick and hassle-free approvals for land loans. 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. You can also approach the bank for a loan after improving your credit score, which can be done by clearing your past debts. You can also approach a bank with which you have an existing relationship or fixed deposits or other investments.

    3. Are NRIs eligible for plot loans?

      Yes, Non Resident Indians are eligible for plot loans from banks in India. However, the plot loan can only be used to buy a plot of land for residential use and cannot be used for any other purpose.


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    Plot Loan Reviews

    • ICICI Bank
      "Excellent Loan"
      0.5 5.0/5 "Blown Away!"
      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.
      Was this review helpful? 183
      , new delhi
      Reviewed on Mar 21, 2020
    • IndusInd Bank
      IndusInd Bank
      "Not good loan"
      0.5 3.0/5 "Satisfactory"
      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.
      Was this review helpful? 158
      , ahmedabad
      Reviewed on Mar 20, 2020
    • LIC Housing
      "Best housing loan "
      0.5 5.0/5 "Blown Away!"
      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.
      Was this review helpful? 205
      , tirupur
      Reviewed on Mar 20, 2020
    • Tamilnad Mercantile Bank
      "Average Service"
      0.5 2.0/5 "Expected more"
      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.
      Was this review helpful? 136
      , surat
      Reviewed on Mar 15, 2020
    • Syndicate Bank
      "Easy loan approval"
      0.5 5.0/5 "Blown Away!"
      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 .
      Was this review helpful? 128
      , bangalore
      Reviewed on Mar 14, 2020
    • ICICI Bank
      "Disappointed with ICICI"
      0.5 0.5/5 "Unacceptable"
      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.
      Was this review helpful? 136
      , rabkavi banhatti
      Reviewed on Mar 14, 2020
    • review
      "Supporting finance"
      0.5 5.0/5 "Blown Away!"
      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.
      Was this review helpful? 117
      , chennai
      Reviewed on Mar 13, 2020
    • SBI
      "Easy loan approval"
      0.5 4.0/5 "Great!"
      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.
      Was this review helpful? 171
      , indore
      Reviewed on Mar 13, 2020
    • Indiabulls
      "Need to improve customer service "
      0.5 2.0/5 "Expected more"
      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.
      Was this review helpful? 117
      , thane
      Reviewed on Mar 12, 2020
    • review
      "Home loan closer conditions"
      0.5 1.0/5 "Really Bad"
      Hi All, 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...
      Was this review helpful? 140
      , bangalore
      Reviewed on Mar 11, 2020
    • Indiabulls
      "Good service"
      0.5 4.0/5 "Great!"
      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.
      Was this review helpful? 99
      , hyderabad
      Reviewed on Mar 11, 2020
    • LIC Housing
      "Very good home loan and need to improve the interest rate"
      0.5 5.0/5 "Blown Away!"
      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%.
      Was this review helpful? 113
      , kolkata
      Reviewed on Mar 10, 2020
    • Union Bank of India
      "Average Service"
      0.5 3.0/5 "Satisfactory"
      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.
      Was this review helpful? 104
      , chennai
      Reviewed on Mar 09, 2020
    • HDFC Limited
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      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.
      Was this review helpful? 146
      , kanchipuram
      Reviewed on Mar 09, 2020
    • LIC Housing
      "Need to decrease the interest rate"
      0.5 4.0/5 "Great!"
      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.
      Was this review helpful? 92
      , lucknow
      Reviewed on Mar 09, 2020
    • HDFC Limited
      "Comfortable process "
      0.5 5.0/5 "Blown Away!"
      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.
      Was this review helpful? 87
      , alleppey
      Reviewed on Mar 07, 2020
    • HDFC Limited
      "Best Service"
      0.5 4.0/5 "Great!"
      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 .
      Was this review helpful? 88
      , chennai
      Reviewed on Mar 06, 2020
    • review
      "Good service"
      0.5 3.0/5 "Satisfactory"
      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.
      Was this review helpful? 78
      , vadodara
      Reviewed on Mar 06, 2020
    • review
      "Average Loan Service"
      0.5 3.0/5 "Satisfactory"
      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.
      Was this review helpful? 79
      , chennai
      Reviewed on Mar 06, 2020
    • HDFC Limited
      "Good Loan Service"
      0.5 5.0/5 "Blown Away!"
      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.
      Was this review helpful? 103
      , rajkot
      Reviewed on Mar 05, 2020
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