What are the Documents Required for Land Loan?

What are the Documents Required for Land Loan?

Last Updated : May 11, 2020, 4:51 p.m.

You can use a land loan to buy a plot on which you can construct a home. Several banks provide land loans and sanction them only when individuals have the required income and repayment potential. The sanction is also dependent on successful documentation. What are the documents that lenders seek to approve the loan? Read this article further to know the same.

List of Documents Required for a Land Loan

ID Proof:-

  • Aadhar card
  • PAN card
  • Voter ID card
  • Driving license
  • Passport

Income Proof:-

  • Salary slip/certificate
  • ITR report
  • Last 6-months Bank statement
  • Form 16

Address proof:-

  • Electricity Bill
  • Telephone Bill
  • Aadhaar Card

Property Proof:-

  • Down Payment receipt
  • Allotment letter
  • Agreement to sale

Why are the Documents Necessary?

Documentation can help the lender compute the eligibility for the loan, and sanction the amount as per the proof. It is also required to confirm the details which the user has provided to the for the land loan. Improper documentation can lead to the rejection of the loan application. So make sure you present the right documents while applying for the loan.

How to Find the Best Lender?

You can select the land loan basis the following-

Lower interest rate: Compare the rates of different lenders before making a final decision. A lower interest rate can reduce your EMIs and make it easy for you to pay for them.

Desired Loan: Look for a lender which gives you the loan amount you need to purchase a land. Loans are sanctioned based on the value of the property. The greater the value the more is the sanctioned amount. Lenders can provide around 75%-90% of the property cost.

Longer repayment period: You get an extended repayment period of around 15-20 years.

Top Lenders for Land Loan in India

Bank Interest Rate Loan (In INR) Tenure
Axis Bank 8.10%-8.65% 5 lakh to 5 crore 20 Years
ICICI Bank 7.95%-9.05% 8 lakh to 3 crore 20 Years
HDFC Limited 7.95%-8.90% Upto 75%-80% of the property cost 15 Years
SBI 8.05%-8.40% 85% of Land cost 10 Years
LIC Housing Finance 9.95%-10.05% Upto 50 Lakh-5 Crore, subject to 75% of the property cost 15 Years

Related Post