One of the reasons the Indian real-estate market has seen a substantial growth of approximately $120 billion in 2017 is increase in plot sales. Most individuals buy a plot with the hope of plot-value appreciation in the foreseeable future. Hence, this has led to a growth of plot purchase loans in the recent years.

Features and benefits -

The features and benefits of loans for plot purchase is listed below –

  • Loan amount: Reputed lenders provide up to Rs. 3.5 Crore for these loans. Such an amount is more than adequate to meet the financial aspect of buying a plot.

  • Interest rate: Loans to purchase plots have competitive rates of interest as they are secured. Therefore, the EMI amounts are relatively lower than other types of loan and are less of a financial burden.

  • Tenure: Longer tenures lead to lower EMIs. Therefore, most reputed lenders offer tenures of up to 20 years which makes the repayment process more comfortable.

  • Documentation: Loans for land purchase require minimum documentation to apply. These are the list of documents you need to produce –
      1. Address proof
      2. KYC documents
      3. Identity proof
      4. Salary slip for salaried individuals
      5. Bank statement for last 6 months for self-employed individuals

  • Pre-payment facility: Lenders do not charge any fee in case of pre-payment or early closure of loan account.

  • Insurance schemes: Some lenders also provide customised insurance scheme for plot purchase loans so that the borrower’s family doesn’t have to repay the loan in case of an unfortunate event.

You can look for loans for plot purchase online to avail a loan most suitable to your requirements. You can also transfer your balance to a different lender to avail lower rate of interest. NBFCs offer top-up loans of up to Rs. 50 Lakh on balance transfer.