How to get Property Loan - Best Property Loan in India

Table of content

• Plot loans and the difference between plot loans and home loan
• Eligibility norms for land loans in India
• Important criteria to choose your best bank
• 8 best banks for land loans
• Things to do when looking forward to or availing plot loans.

Plot loan is a step closer towards your dream house. It's way long since you have lived in a rented house. Before you begin with your family planning, buy a piece of land via plot loans securing yourself from its increasing prices, which will nearly make it impossible for you to even dream of it in future.

People often have misconceptions and misunderstands plot loan to be the same as home loans, but there are nuances in them.

• Plot loans have tax benefits up to 2 lakhs, whereas home loans have no tax benefits.
• The tenure for a plot loan is 15 years, whereas, for a home loan, it's 30 years.
• Plot loans have low-interest rates whereas home loans have a high-interest rates.
• One basic difference underlying between both is their use. When it comes to plot loans only thing you can do is buy a piece of land out of it but via home loans, you can invest it in multiple things like renovating or constructing houses etc.

Eligibility norms for land loans in India

Eligibility norms are mainly set to ensure the loans do not go into the wrong hands from where withdrawal is impossible. The lenders make sure the borrower is capable enough to return the amount. Here are certain factors they check on:

• You must be between the age group of 18 to 70 years.
• You must be earning the minimum amount set by the financier.
• You should have good credit scores.
• You must have a settled job at a known company with a handsome salary.

Important criteria to choose your best bank

Things that you must keep in mind while making a choice between which bank to opt for a loan:

• Interest rate
• Tenure
• Maximum loan amount
• Processing fees

8 best banks for land loans

SBI

State Bank of India (SBI) is a public sector bank and is the eminent body for financing loans.

• Interest rate whether salaried or self-employed:

Maximum interest rate:7.45%

Minimum interest rate:7.85%

• Tenure:10 years
• Maximum loan amount:15 crores
• Process fee: 0.4% of the loan amount

Bank of Baroda

Bank of Baroda is a public sector bank evolving to be the 2nd largest public sector bank in India.

• For salaried or self-employed,

Minimum interest rate: 6.75%

Maximum interest rate: 8.25%

• Tenure: 30 years
• Processing fees: 0.5% of the loan amount

HDFC Bank

HDFC bank is one of the pioneering public sector financing bodies availing loans to people conveniently.

• For salaried or self-employed

Minimum interest rate: 6.85%

Maximum interest rate:7.75%

• Tenure: 15 years
• Processing fees: 0.5% of the loan amount

ICICI Bank

ICICI is the largest private sector bank headquartered in Mumbai in India.

• For salaried employ

Minimum interest rate: 7.00%

Maximum interest rate: 7.65%

• For self-employed

Minimum interest rate:7.15% 

Maximum interest rate: 7.80%

• loan amount: 3 crore
• Processing fees: 1.0% of loan amount hu

LIC Housing Finance

LIC housing finance is emerging as an option for home loan borrowers, providing loans at reasonable rates.

• For salaried or self-employed

Minimum interest rate: 6.66%

Maximum interest rate: 7.80%

• Tenure: 15 years
• Processing fees: ₹10,000 of the loan amount to 50 lakhs

India Bulls Home loans

India Bulls Housing Finance Ltd(IBHFL) stands as the third-greatest finance company under National Housing Bank (NHB)

• For salaried employ

Minimum Interest rate: 8.65%

• Tenure: 25 years
• Processing fees: 1.0% of the loan amount

Federal Bank

Federal Bank is a private sector bank becoming a personal choice of people.

• For salaried or self-employed (professional)

Minimum interest rate: 9.05%

Maximum interest rate: 9.16%

• For self-employed ( professional)

Minimum interest rate: 9.10%

Maximum interest rate: 9.20%

• Tenure: 60 months
• Processing fees: 0.50% of the loan amount

PNB

Punjab National Bank is a public sector bank. It is the second-biggest government-owned bank.

• For salaried and self-employed( professional)

Minimum interest rate: 9.05%

Maximum interest rate: 9.15%

• For self-employed (non-professionals)

Maximum interest rate: 9.10%

Minimum interest rate: 9.20%

• Tenure: 60 months
• Processing fee: 0.50% of the loan amount

Things to do when looking forward to or availing plot loans

• Engage in thorough research for all the options available by banks for your plot loans and then end up making decisions which will leave behind you the least possibility of regret.
• Look over the interest rates of all the banks and go for the lowest one you can avail. Remember, even the slightest difference in interest rate will bring great relief to you.
• A good credit score will give you an upper hand to negotiate with some of the banks for lower interest rates.

FAQs related to Property Loan

1. What are the most affordable banks for plot loans in India?

A: HDFC, SBI, ICICI and PNB are some of the most affordable banks for plot loans in India.

1. What is the longest land loan you can get?

A: Land loans are basically for short term with tenure of 2 to 5 years.

1. What is a good credit score?

A: Good credit score is 720 or higher.

Tags Plot Loan, Home Loan, Land Loan, Land plus plot loan, Property loan, Loan For Plot Purchase, Land Loan Interest Rates, Loan for Land Purchase, Plot Loan for Salaried

About Shilpa Kumari

A writer, driven exclusively by passion and interest. I have previously worked for an IT firm as a content writer and am aspiring for various opportunities to work for more blogging websites, adding on value to my experience.