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

    Loans for Buying Land

    We all know about home loans, which we take to either buy an already constructed or under-construction house/apartment, or to construct a house on a plot of land we already own. However, not many of us know about loans for purchasing land. Land loans – or plot loans – are available both to individuals looking to construct a house on a plot at a later date, and to investors and real estate developers. However, if you are buying a plot to construct a house on it, you cannot keep the land undeveloped for a long time, as banks have certain restrictions on by when construction should begin on the plot.

    Land loans can be taken to finance the purchase of a vacant plot. However, these loans might be given only for residential land and not commercial or agricultural land. The loan-to-value ratio would be lower in this kind of loan, and other terms and conditions are also likely to be stricter. Let us look at 4 prominent land loans available in the Indian market to get a clearer picture.

    ICICI Land Loan

    ICICI Bank offers land loans for self-construction of a house. A house needs to be built on the purchased plot, within 2 years of the first disbursement of the loan amount. The plot must be situated within municipal limits and if it is outside municipal limits it should be a direct allotment by the town’s development authority. The bank has several tiers of interest rates based on category (salaried, self-employed, woman, weaker social section), type of loan (floating, fixed), and amount of loan. The rates range from 8.65% to 10.1%.

    DHFL Land Loan

    DHFL’s Land Loan/Plot Loan can be taken for constructing your own house on a non-agricultural land located in municipal limits or local development authority limits. The maximum tenure available is 20 years, and interest rates depend on the market conditions, value of the plot and Retail Prime Lending Rate. You can get both fixed interest rates and floating interest rates.

    HDFC Plot Loan

    HDFC offers plot loans for both residential and commercial purposes. The key features of these loans are:

    1. Residential plot loan:

    Both salaried and self-employed persons can get a residential plot loan. The loan-to-value ratio (LTV – the amount of loan you can get for the cost of the plot) is 90% for loans up to Rs.20 lakh, 80% for loans up to Rs.75 lakh, and 75% for loan requirements of more than Rs.75 lakh. The maximum tenure available is 15 years. You can get either a fixed interest rate on the loan or an adjustable rate. The TruFixed Loan is available in variants of fixed rates for either 2 years or 3 years, with interest rates of 9.2% to 10%, while adjustable rate loans can be had for rates between 9.1% and 9.65%.

    2. Non-residential plot loan:

    This loan can be taken to buy a plot of commercial land if you wish to build an office or commercial space. The tenure limits, LTV terms and types of loans offered are the same as those of the residential plot loan. The adjustable rate loan comes with interest rates of 11.9% to 13.15%, and the interest rate for TruFixed Loans is 11.8% to 13.05%.

    PNB Plot Loans

    Plot loans from Punjab National Bank (PNB) can also be taken for residential and commercial purposes. The terms of these loans are:

    1. Residential Plot Loan:

    To buy residential plots, you can borrow 90% of the market price of the plot if the loan amount is Rs.20 lakh or less; 80% of the plot price if the loan amount is between Rs.20 lakh and Rs.75 lakh, and 75% of the plot value if the loan amount is more than Rs.75 lakh. The loan tenure is flexible, ranging from 3 years to 30 years. The company offers both fixed rate and floating rate loans. Floating rates for salaried persons and self-employed professionals is 10.3%, while that for self-employed non-professionals is 10.5%. Fixed-rate loans are available in 3-year, 5-year and 10-year fixed rate schemes. Salaried persons and self-employed professionals need to pay between 10.25% to 10.5% for fixed-rate loan products, while self-employed non-professionals have to pay between 10.45% to 10.75%.

    2. Loan For Real Estate Developers

    PNB’s Construction Finance helps real estate developers with money, for buying the land they want to construct on, or finance their project once construction begins. The loan terms are customised according to the needs of the developer. Loan amount can be increased if project costs rise, and repayment methods are flexible and entrepreneur-friendly.

    Most banks and housing loan providers offer plot loans for both residential and commercial purchases, and you need to talk to your bank manager to know the exact terms and conditions of the loan. Residential plot loans are more common than commercial loans, though. If you want to buy land for commercial purposes, you can also consider taking business loans.

    Personal Loan 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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