Purchasing a land is an investment that can hardly go wrong. The value of land is most certainly going to rise over the course of time. However, land is in demand amongst the youth of the nation and can be expensive to purchase. Moreover, availing a loan for land purchase is quite different from availing a home loan, and the process of approval is much more stringent than a regular home loan. Although more difficult to obtain, it isn’t impossible. Mentioned below are some tips that can help you obtain a loan to purchase land.
Obtain a Construction Loan – A mortgage that allows you to purchase land and construct a house under a single loan is a construction loan. These kind of loans are relatively easier to obtain as it involves construction of property as well. This is also considered to be a wise investment as the value of the land will rise considerably once a building has been constructed on it.
Submit Building Plans – Submitting your building plans to the bank upon requesting a loan to purchase land will increase the likelihood of you getting it sanctioned. However, it should be noted that the loan amount will be released as and when your construction steps are completed.
Make a Larger Down Payment – Generally, banks and other financial institutions require you to pay 20 – 30% of the land value as down payment upon availing a loan. You can increase the likelihood of getting your loan sanctioned if you choose to pay a higher amount towards down payment. Sanctioning the loan will be less riskier for the lender if you have made a larger down payment, thereby increasing your chances drastically to obtain the loan.
Have a Good Credit Score – Your credit score is one of the main factors that lenders take into consideration before approving your loan. Your credit score is essentially your past credit behaviour equated into a number between 300 and 900. The higher your credit score, the more likely it is for you to obtain a loan and vice versa. Also, getting a loan rejected will lower your credit score and make it difficult to avail a loan in future as well. Therefore, it is important to ensure that you have a good credit score before you apply for a loan.
Understand your Debt and Income Ratio – This is basically the ratio of your debt when compared to your monthly income. Ideally, you should not be spending more that 40 – 50% of your monthly income on EMI that is payable towards your debt. Therefore, it is if utmost importance to opt for a loan amount that corresponds with your income. Not doing so may result in rejection of a loan.
Opt for Equity Loans – A equity loan is a loan that can be availed by using his/her home as collateral. The value of the house will be used to obtain a loan in this case. This type of loan is much easier to obtain than a regular loan as it is less riskier for a banker to sanction a secured loan.
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I have applied a Home loan through online. My application canceled by HDFC Limited because my net salary is Rs. 25k they said its not sufficient for the loan approval. Customer service was not so good, not so bad, it is average. I think, the rate of interest was 8-10%.
I have taken a housing loan from DHFL and the loan amount of Rs. 10,50,000 for the rate of interest of 9.8%. I am paying the EMI amount of Rs. 8500 for the tenure period of 15 years since its plot cum construction loan. Bank itself approved a loan within 3 days.
I have taken home loan directly through LIC Housing Finance .The rate of interest and the processing fee was quite nominal .This loan was sanctioned on exact time frame without any delay.This loan is still active and i have submitted the required documents as well .If EMI is paid on delay basis there will be extra charges.
I have taken a home loan from SBI and the loan amount was Rs. 30 lakh. The rate of interest was 8.15% and i am paying EMI of Rs. 25k. Customer service was good. I received this loan instantly and i applied this loan through online channel.There is no pre closure charges.
I have taken a home loan in MUTHOOT HOMEFIN LIMITED on one year before. The amount was offered of 6L which was sufficient as per my requirement. The tenure period of 7 years. My friend has suggested this finance to apply a loan. The process was smooth and sanctioned the loan within 15-20 days. Interest is nominal. Pre closure is applicable and part payment can be done of above 50K. It is nominal to pay for EMI.
I had applied for a home loan with ICICI Bank. They have taken my documentation and also completed the verification as well. The loan amount was Rs. 8.75 lakhs and the rate of interest was 8.6% i am happy with the interest.I received this loan instantly and i applied this loan through online channel.There is no pre closure charges.
I have taken Home loan directly through HDFC LTD .The loan amount was sanctioned on time without any delay .The agent shared all the details about the loan process ,I have submitted the required documents on time ,This loan is still active and there was difficulties faced so far .The loan tenure is for 5 years ,i have completed 1 year successfully and need to pay EMI for another 4 years.
I have taken home loan directly through HDFC LTD .The rate of interest was 8.25% it was nominal and all the details aboput the loan process was clearly explained by the agent .I have submitted the documents through the agent.I have got the loan amount sanctioned on time .I am satisfied with the service so far .
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Reviewed on Dec 05, 2019
I have taken Home loan directly through HDFC Ltd.The rate of interest and the processing fee was nominal .The loan amount got on time and there was no difficulties .This loan is still active and paying the premium through EMI basis without any hassle got this loan .I am completely satisfied with the service .
I have taken home loan directly from Oriental Bank Of commerce .The rate of interest and the processing fee was very nominal,I have got the loan amount sanctioned on time ,There was no drawbacks faced so far on using this service .From bank end all t he detail was shared and i am satisfied with the service .
I had applied for a home loan with HDFC Limited. The loan amount was Rs. 22,00,000 and the rate of interest was 8% when i was applied , but now it increased to 9.4% need to work in rate of interest. I am paying Emi monthly Rs. 18,500 and the tenure was 18 years. They have taken my documentation and also completed the verification as well executive supported me very nicely.
I have taken home loan directly through Home First Finance company India Pvt ltd.I have got the loan on time and the rate of interest was nominal .The documents was less and the agent clearly explained the loan process very clearly . This loan s still active and paying the premium.
I have taken home loan directly through ICICI Bank.The rate of interest and the processing fee was medium.I have got the loan sanctioned on time .The documents was very less and each and every detail was shared clearly by the agent .This loan is still active and there was no difficulties faced so far.
I have taken home loan directly through DHFL .The rate of interest and the processing fee was very high since had a requirement at that time taken this loan .This loan is still active and the loan got sanctioned on time .There was proper callback and follow up as well.Everything was ok but the service was average according to my point of view.
I have taken home loan which was taken directly through Union Bank of India .The rate of interest was less it was 8.5% and still this loan is active .I have got the loan amount without any delay .All the required details about this loan was shared by the agent. According to me the service is not satisfied .
I have taken home loan directly through Axis Bank .The rate of interest and the processing fee was nominal and the got the loan amount on exact time frame .I am paying the premium through EMI basis .All the detail about the loan process was clearly shared by the agent .I have submitted the required documents and the process was really satisfied .
I have taken India Infoline Housing Finance Limited directly .I have got the loan on delay basis it took 2 months of time and not got the reason for the delay .This loan is still active and there was no callback and follow up from India infoline .I have submitted the required documents and there was no drawbacks faced so far.
Bajaj Housing Finance tries all tricks to loot me -
1. Just before disbursement day, they hiked the Processing fee and increased the interest rate
2. After EMI stated, they suddenly hiked the EMI for one month by 20,000 due to a system issue at their end.
3. They arbitrarily deduct charges from your bank account in small amounts without telling and authorizations and randomly through a month.
4. Customer service and its Head are completely nonchalant and they fake ignorance.
5. It takes 5-6 months to resolve one issue. By that time, they will create another issue and you spend the next 5 months chasing them for its resolution.
Beware the NBFCs for housing finance. Its always better to go to the leading banks.
I have applied for Home loan directly through HDFC Limited .The rate of interest was very less it is only 8.35 or 8.55% criteria but i am not sure about the exact percentage .The premium is paid on EMI basis and got the loan amount on time and not faced any difficulties .I am totally satisfied with the service.
I have taken my home loan from HDFC Limited. Purchased my loan more than 5 years back. I got the loan amount of Rs. 20 lakhs and they have taken 3 months to sanctioned the loan and the delay from my side to provide the documents. I'm satisfied with the interest rate of 8.5%