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Plot Loans or Realty Loans
Plot / Realty Loans
Acquire Your Dream Land with Plot/Realty Loans
Plot loans are a type of loan offered by banks and financial institutions to individuals who want to purchase a piece of land or a plot of land. This loan can be used to buy a residential, commercial or industrial plot. Plot loans are different from home loans, as home loans are used for purchasing a ready-to-move-in property, while plot loans are used for buying a piece of land to construct a property in the future.
Plot Loans: Understanding Eligibility Criteria, Interest Rates, and Repayment Tenure
The loan amount for plot loans is typically lower than home loans, and the interest rates are also higher. This is because a plot of land does not generate any income and is considered a risky investment by lenders. The repayment tenure for plot loans is shorter than home loans, usually ranging from 10 to 15 years.
The eligibility criteria for plot loans are similar to home loans, and include factors such as age, income, credit score, and employment status. The loan amount sanctioned for plot loans is based on the market value of the land, the borrower's income, and repayment capacity. The borrower is required to make a down payment of a certain percentage of the total cost of the plot, which can range from 10% to 30% depending on the lender's policy.
The documentation process for plot loans is similar to home loans, and requires the borrower to submit documents such as proof of identity, address proof, income proof, and property-related documents such as title deeds, sale agreement, and NOC from the local authority.
It is important for borrowers to conduct thorough research before availing of a plot loan, and ensure that the plot of land they are interested in is legally compliant and has all the necessary approvals from the local authorities. It is also advisable to calculate the total cost of constructing a property on the plot, including registration fees, stamp duty, and other related expenses, to determine the total loan amount required.
In conclusion, plot loans are a useful financing option for individuals who want to purchase a piece of land to construct a property in the future. However, it is important to carefully consider the eligibility criteria, interest rates, repayment tenure, and other related factors before availing of a plot loan.
Here are some additional details about plot/realty loans.
Loan Type
Loan Type
The Realty/Plot Loan Scheme only offers term loan and does not provide an overdraft facility.
Purpose
Purpose
Buying residential plots within municipal/corporation areas of urban/metro centers is generally allowed, while buying plots outside these areas is typically limited to cases where they are allotted/developed by government bodies/development authorities.
Eligibility
Eligibility
Typically for Salaried Customers, with Some Banks Extending to Non-Salaried Customers, But with Age Limitations up to 65 Years.
Loan to Value Calculation
Loan to Value Calculation
The loan eligibility will be determined based on the lower value between the amount mentioned in the 'Agreement to Sale' and the 'Realizable Value', which will be assessed through a valuation report not older than three months.
Security
Security
Creating an equitable mortgage for the plot of land intended for purchase.
Property must be non-agricultural and compliant with SARFAESI regulations.
Processing fee & Other charges
Processing fee & Other charges
Similar to home loan schemes.
Similar to home loan schemes.
Banking
Banking
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Fast, secure sign-in
Fast, secure sign-in
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Converting a Realty Loan into a Home Loan: Standard Operating Procedure
Converting a Realty Loan into a Home Loan: Standard Operating Procedure
Unlock the Benefits of Regular Home Loans with Realty Loan Conversion
Unlock the Benefits of Regular Home Loans with Realty Loan Conversion
Are you currently paying high-interest rates on your realty loan? If so, you may be wondering if there is a way to transition to a more affordable financing option. Fortunately, many banks and financial institutions allow borrowers to convert their realty loans into regular home loans, unlocking a host of benefits that can lead to significant savings.
To qualify for a conversion, you will need to submit certain documents, including an approved map, construction permission, and construction estimates. As long as these requirements are met within the allotted five-year timeframe, you can seamlessly transition to a more favorable interest rate and repayment terms.
An Essential Guide to Understanding Home Loans: From Type, Eligibility to Repayment
Do you have questions about home loans, such as the different types available, important terminology and concepts, or are you seeking in-depth information? View Q&A here….
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