Multiple banks. Different interest rates. Call it a "conflict of interest".
  • Personal Loan BYTES FROM OUR KITCHEN

    Loan for Land Purchase

    Land is by far the best investment a person can make, as the price of the land just keeps increasing over the years. Every person wishes to have a land that he can call his own and most often the only reason why a person is not able to buy a property is due to the lack of finance. But the problem of finance is now being addressed and banks are offering loans to purchase land.

    Features and Benefits of Loan for Land Purchase

    The following are the features of loan for land purchase:

    • You can purchase a piece of land for residential purpose.
    • The loan to value for a loan for land purchase is lower when compared to home loan.
    • Tenure is lower when compared to home loan.
    • Bank has the right to recall the loan or increase the rate of interest if the construction does not start within the stipulated period.
    • Prepayment of the loan will attract a charge.
    • More due-diligence is required while buying a property.
    • Floating as well as fixed rate of interest options are available.
    • Borrowers can avail tax exemption after the construction has been completed.

    Eligibility to avail Loan for Land Purchase

    • Repayment capacity of the borrower is considered.
    • Monthly income.
    • Savings history.
    • Number of dependents in the family.
    • Spouse's income, etc.

    Loan for Land Purchase Documents required

    The borrower has to present the following document while applying for a loan to purchase land:

    • Copies of allotment letter
    • Approved drawings of proposed purchase
    • Agreement of sale
    • Sale deed from architect
    • Engineer for the property to be purchased
    • Title deeds
    • If it is a resale case, then previous claim of property documents must be submitted.

    If the property is converted, you have to submit the conversion and development charges payment receipt.

    Key points to remember regarding the loan for land purchase:

    • Residential and commercial conversion can be funded. Agricultural land in green or orange belt can’t be funded.
    • The plot must be independent or in a gated community.
    • The geographic location of the property matters to the lenders. So check with the lender before you apply for the loan.
    • The loan to value ratio lower.
    • The loan tenure is restricted to 15 – 20 years.
    • The rate of interest might be slightly higher when compared to home loan.
    • While taking the loan make sure that there is no condition to start the house construction within a certain period.
    • The property bought with the loan for land purchase is for investment and not with the intention to sell.
    • This is a riskier investment as it may attract a lot of litigation at the end of the day.
    • The land can be however mortgaged in the later stage to meet your financial requirement.

    Loan for Land Purchase offered in India

    Following are the banks that offer loan to purchase land in India:

    HDFC Bank Offer Land Purchase Loan

    Features
    • The loan is offered to purchase a plot through direct allotment, purchase of a resale property and to transfer your outstanding loan availed from other bank.
    • Interest rate offered are attractive.
    • Repayment option can be customised to suit your needs.
    • Legal and technical counselling is provided.
    Types of plot loans
    • Adjustable rate loan
    • TruFixed Plus Loan 2 year fixed rate variant
    • TruFixed Plus home loan 3 year fixed rate variant
    Eligibility Individuals and joint owners can apply.
    Maximum Loan amount
    Loan amount Funding
    Up to Rs.20 lakh 90% of the cost of the property
    Rs.20.01 lakh – Rs.75 lakh 80% of the cost of the property
    Above Rs.75 lakh 75% of the cost of the property
    Loan Tenure Maximum period of 15 years.
    Interest Rate
    • Adjustable rate loan
    Women 9.55% to 10.05%

    RPLR Minus Spread- 16.30% - (6.75 to 6.25%)

    others 9.60% to 10.10%

    RPLR Minus Spread- 16.30% - (6.70 to 6.20%)

    • TruFixed Plus Loan 2 year fixed rate variant


    Women 9.55% to 10.05%

    RPLR Minus Spread- 16.30% - (6.75 to 6.25%)

    others 9.60% to 10.10%

    RPLR Minus Spread- 16.30% - (6.70 to 6.20%)

    • TruFixed Plus home loan 3 year fixed rate variant
    Women 9.75 to 10.25%

    RPLR Minus Spread- 16.30% - (6.55 to 6.05%)

    others 9.80% to 10.30%

    RPLR Minus Spread- 16.30% - (6.50 to 6.00%)

    Axis Bank Offer Land Purchase Loan

    Features
    • Attractive and flexible interest rates are offered.
    • Balance transfer facility is available.
    • No prepayment charges are imposed.
    • Longer tenure are offered so you have to pay lower EMI each month.
    Eligibility
    • Salaried individuals
    • Professionals
    • Self-employed individuals
    Loan amount The loan amount depends on the repayment capacity of the borrower and the tenure that he chooses.
    Loan Tenure The bank decides the tenure for the loan.
    Interest Rate The base rate is 9.50% the additional rate will be charged based on the eligibility criteria and the loan amount that the borrower has taken.

    ICICI Bank Offer Land Purchase Loan

    Features
    • Residential property can be purchased for self-construction in the future.
    • The property construction has to be completed in 2 years after availing the loan.
    • The plot must be in the municipality limits.
    Eligibility Approach the bank to know if you are eligible for the loan.
    Loan amount The loan amount depends on your repayment capacity and the collateral offered.
    Loan Tenure The Bank decides the tenure of the loan.
    Interest Rate Approach the bank to know the interest rate they are offering for the plot loan.

    DHFL Offer Land Purchase Loan

    Features
    • If you take a loan for a longer term, your EMI will reduce.
    • Salaried non-professionals with loan requirement ranging from Rs.5,000 to Rs.20,000 will be charged a 1.5% processing fee.
    • The loan can be repaid through EMIs through ECS or post-dated cheques.
    • Principal amount and interest rate payment attracts tax benefits.
    • Co-applicant can enhance the loan amount requirement.
    • Documentation is easy and hassle free.
    Eligibility The plot loan is determined on the following criteria:

    • Repayment capacity
    • Age of the borrower
    • Educational qualification of the borrower
    • Stability of income
    • Number of dependents
    • Co-applicants income
    • Assets and the saving habit of the borrower
    Loan amount Based on the requirement and the collateral offered and the repayment capacity of the borrower.
    Loan Tenure Loan is offered for 1 – 20 years.
    Interest Rate Interest is based on the retail prime lending rate that fluctuates based on money market conditions.

    State Bank of India (SBI) Offer Loan for Land Purchase

    Features Land purchase loan is offered to farmers to purchase land and who wish to consolidate their land holding and develop waste land.
    Eligibility
    • Small and marginal farmers who own less than 5 acres of unirrigated or 2.5 acres irrigated land.
    • The borrower must have a record of repayment of loan for at least 2 years.
    Loan amount Loan amount is based on the cost of the land, provision for irrigation and development facility, purchase of farm equipment and registration and stamp duty charges.

    Up to 85% of the cost of the land subject to a maximum of Rs.5 lakh security is offered.

    Loan Tenure Maximum 9 – 10 years.

    Gestation period is 1 year for developed land and 2 years for the land that has to be developed.

    Interest Rate Approach the bank to know the interest rate they are offering for the land purchase loan.

    Loan for Land Purchase Reviews

    • ICICI Bank Personal Loan
      "Good overall"
      0.5 5.0/5 "Blown Away!"
      My personal loan is with ICICI Bank and it was a good experience. The process is good and the loan was provided to me on time and as needed. The rate of interest and the processing charges is nominal and there are no hassles in the after loan services.
      Was this review helpful? 0
      , jorhat
      Reviewed on Jan 15, 2019
    • Bank Bazaar Personal Loan
      "Excellent experience"
      0.5 5.0/5 "Blown Away!"
      The experience is good overall at Bankbazaar as they contacted me on time and informed me the details. The process was easy as I was able to get my details on time. The website is also good and it is informative and useful as well. From next time will apply for loan through this channel.
      Was this review helpful? 0
      , jorhat
      Reviewed on Jan 15, 2019
    • HDFC Bank Personal Loan
      "ROI is high"
      0.5 5.0/5 "Blown Away!"
      HDFC Bank has offered me a personal loan with a zero processing fee. The rate of interest is on the higher side. It is of 16%. After the document collected the loan got approved. But the disbursement took very long, I got the loan after almost 25 days.
      Was this review helpful? 0
      , jorhat
      Reviewed on Jan 15, 2019
    • Bank Bazaar Personal Loan
      "Satisfactory"
      0.5 5.0/5 "Blown Away!"
      There are no hassles with Bankbazaar, as I received a response on time and there are no issues to get connected with the bank. The portal is also good and it is easy to understand and use and apply for the loan. There are follow up calls as well in the process.
      Was this review helpful? 0
      , jaipur
      Reviewed on Jan 15, 2019
    • HDFC Bank Personal Loan
      "Experience is good"
      0.5 5.0/5 "Blown Away!"
      I have taken my personal loan with HDFC Bank. The customer services and response is good and I got the loan with ease and on time. They are also normal on the rate of interest and processing charges. In all no hassles in the documentation process.
      Was this review helpful? 0
      , jaipur
      Reviewed on Jan 15, 2019
    • Bank Bazaar Personal Loan
      "Fast process"
      0.5 4.0/5 "Great!"
      The experience with Bankbazaar is good and there are no hassles in the process. The customer services and response is very fast. They been on time to contact me and they are helpful too. The website is also good and it is easy to understand and place a request.
      Was this review helpful? 0
      , haridwar
      Reviewed on Jan 15, 2019
    • HDFC Bank Personal Loan
      "Need to improve overall"
      0.5 3.0/5 "Satisfactory"
      After me applying for a personal loan with HDFC Bank. The documents was collected on time. After which the process for the loan took three weeks which is almost like 25 days to get the funds. I have not received the loan letter yet. I have not got any confirmation about the EMI due date and also what is the interest rate and processing fees.
      Was this review helpful? 0
      , haridwar
      Reviewed on Jan 15, 2019
    • ICICI Bank Personal Loan
      "Satisfactory"
      0.5 5.0/5 "Blown Away!"
      I also have a personal loan with ICICI Bank. The customer services are good and the process was on time. I did not face any delay and the documents was collected on time. I received the loan within a week. The rate of interest and the processing charges is normal.
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 15, 2019
    • Bank Bazaar Personal Loan
      "Supportive services"
      0.5 4.0/5 "Great!"
      There were no delay with Bankbazaar.com, and the customer services and the response is good. They were on time to contact me and inform me the details. The website is also satisfactory and it is easy to understand and it is informative as well. Mr. Vijay was very supportive in the whole process.
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 15, 2019
    • HDFC Bank Personal Loan
      "Good. Can do better"
      0.5 4.0/5 "Great!"
      HDFC Bank has also offered me a personal loan. The process was quick and I got the loan on time. The rate of interest is of 18% and there were processing charges as well. The loan amount is not as expected. I asked for 5.5 lakh and I received 2.5 Lakh.
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 15, 2019
    • Bank Bazaar Personal Loan
      "Excellent experience"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar has been really good overall. The website is satisfactory as I can check the bank offers. The services was on time to contact me and inform me the details. There were follow up calls as well in the process. In all a hassles free experience.
      Was this review helpful? 0
      , kochi
      Reviewed on Jan 15, 2019
    • HDFC Bank Personal Loan
      "Good overall"
      0.5 5.0/5 "Blown Away!"
      I had my personal loan with HDFC Bank. The process to get the loan is good. The documentation is normal too. I needed a loan of five lakhs but I received only two lakhs for the rate of interest of 10%. There was a processing fee as well. The customer support is fine.
      Was this review helpful? 0
      , kochi
      Reviewed on Jan 15, 2019
    • Bank Bazaar Personal Loan
      "Services are satisfactory"
      0.5 4.0/5 "Great!"
      There were no hassles at Bankbazaar.com as the contacted me on time and informed me the details. The customer services and response is good and there are no issues. The website is also fine and it is easy to use and understand and place a request.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 15, 2019
    • IndusInd Bank Personal Loan
      "Experience is good"
      0.5 4.0/5 "Great!"
      I have a personal loan with Indusind Bank. The process to get the loan is fine. The rate of interest is around 11.5% with a zero processing fee. The loan was provide on time and the documentation was collected on time too. I received the loan amount as expected.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 15, 2019
    • Bank Bazaar Personal Loan
      "Good. Can be more quick"
      0.5 3.0/5 "Satisfactory"
      After I applied at Bankbazaar I received a call and the process started off for the loan. I got the details of the banks and their offers. The website is also easy to use and it is informative as well. It would be better if the process is more sooner.
      Was this review helpful? 0
      , pune
      Reviewed on Jan 15, 2019
    • HDFC Bank Personal Loan
      "Good. Can be more sooner"
      0.5 3.0/5 "Satisfactory"
      I have taken my personal loan with HDFC Bank. The process to get the loan was delayed, I got it after one and half week. The documentation was collected late. The rate of interest of 11.25% and there was a processing fee too. The loan amount was as expected.
      Was this review helpful? 0
      , pune
      Reviewed on Jan 15, 2019
    • Bank Bazaar Personal Loan
      "Awesome one stop shop "
      0.5 5.0/5 "Blown Away!"
      Various option available in Bank Bazaar, rather going to direct financier. here we can analyze the real information in website without going anywhere. I am using the site for past 2 months, the portal is good to post the request. The customer support team gave me the proper information.
      Was this review helpful? 2
      , new delhi
      Reviewed on Jan 14, 2019
    • Tata capital Personal Loan
      "Satisfactory Experience"
      0.5 4.0/5 "Great!"
      I am satisfied with Tata Capital documentation part and they have fulfilled the commitment on my personal loan. The interest rate is quite nominal they gave me the same thing which provided by other banks. Even the door step documentation process is good.
      Was this review helpful? 2
      , new delhi
      Reviewed on Jan 14, 2019
    • Axis Bank Personal Loan
      "Reduce the charges"
      0.5 5.0/5 "Blown Away!"
      I took my personal loan in Axis Bank before 4.5 years back and its been completed before 5 to 6 months have taken top-up loan. The customer service is very good. The charges are more compared to other banks. The loan duration is 5 years. Monthly installment is 5600 rupees through net banking.
      Was this review helpful? 2
      , bangalore
      Reviewed on Jan 14, 2019
    • Bank Bazaar Personal Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      The customer service and response was better. I have been using the bank bazaar website for past 2 years, It was helpful to take credit card,loans and to check the credit score. Am comfortable with the mobile app. Most I like the responsibility is very good and process was simple.
      Was this review helpful? 2
      , bangalore
      Reviewed on Jan 14, 2019
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