Multiple banks. Different interest rates. Call it a "conflict of interest".
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    Loan for Land Purchase

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    12.50% - 19.50% Fixed
    0 One time fee
    25L Max
    1-5 years
    Response Time Within 30 minutes
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    12.50% - 19.50% Fixed
    ₹0 One time fee
    25L Max
    1-5 Years
    Response Time Within 30 minutes
    Get Goibibo goCash worth Rs 5,000 Paperless approval option available
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    15.95% - 18.95% Fixed
    2% One time fee
    20L Max
    1-3 years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    11.49% - 20.15% Fixed
    Up to 2%
    15L Max
    1-5 years
    Response Time Within 30 minutes
    What you'll love
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    Perks
    Think about
    Fees & Charges
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    13% - 20% Fixed
    1.5% (min. ₹1150) One time fee
    15L Max
    1-5 years
    Response Time Within 30 minutes
    What you'll love
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    Perks
    Think about
    Fees & Charges
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    11.49% - 17% Fixed
    0.25% to 2%
    30L Max
    1-5 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    11.99% - 19% Fixed
    0.25% to 2.5% One time fee
    25L Max
    1-5 years
    Response Time Within 30 minutes
    Get Goibibo goCash worth Rs 5,000 Paperless approval option available
    What you'll love
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    12.99% - 19% Fixed
    0.50% to 2.5% One time fee
    20L Max
    1-5 years
    Response Time Within 30 minutes
    What you'll love
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    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    17.25% - 37% Fixed
    1.5% to 6.0% One time fee
    15L Max
    1-4 Years
    Response Time Within 30 minutes
    What you'll love
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    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    11.99% - 17% Fixed
    0
    30L Max
    1-5 years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    11.49% - 18.49% Fixed
    2.5% (min. ₹1149) One time fee
    20L Max
    1-5 Years
    Response Time Within 30 minutes
    Get Goibibo goCash worth Rs 5,000 Paperless approval option available
    What you'll love
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    DOCTORS LOAN
    12.99% - 14.50% Fixed
    0.99% to 2% One time fee
    45L Max
    1-5 years
    Response Time Within 30 minutes
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    Personal Loan BYTES FROM OUR KITCHEN

    How to get 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.
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