- Don’t know the documents you need to submit to get a land loan?
- No worry, we will tell you the same in this post
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
- Aadhar card
- PAN card
- Voter ID card
- Driving license
- Salary slip/certificate
- ITR report
- Last 6-months Bank statement
- Form 16
- Electricity Bill
- Telephone Bill
- Aadhaar Card
- 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|