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Best Plot Loans in India

Highlights

  • Why Plot Loan could be the best option for you?
  • Know about all the top lenders providing a plot loan, the interest rates they charge, etc

A home comes top in the list of needs of a common individual. Everyone wants their own roofs above their heads. And in a country like India, where there are so many people who want to own their homes, but cannot buy because of the lack of required money, a loan comes handy. But having a home with impressive interiors and exteriors will most likely be your dream. It is possible when you buy a flat from a seller, you might not get the value of your money spent as the construction may not be to your liking. So, a plot loan that helps you buy a piece of land and construct a home on the same should be the way forward. If you are someone who wants to own land or plot and build a dream home for yourself, a plot loan could be the best option for you. There are several banks and financial institutions that provide you funds so that you can buy a plot and build a home on it.

In this article, we will tell you about everything about the Plot Loan, features of this loan facility, the lenders that provide plot loans, interest rates charged by them, and much more. So, let’s just keep reading!

Features and Advantages of Plot Loans

As you already know that you can avail of a plot loan to buy a piece of land or plot for future residential usage only. Before applying for a plot loan from any lenders, you must know about some of the features and advantages of this loan facility so that you can make a better decision. You can have a look at all of them below.

  • Through a plot loan, you can buy the land or plot for residential usage. And not only this, you can use this land as an investment as it may give you better returns in the future at the time of resale.
  • If you are worried about the interest rates on plot loans, you must know that you can get a plot loan at pretty affordable interest rates starting from as low as 7.95% per annum.
  • A plot loan can be taken mainly for two purposes that are purchasing plots directly from the real estate development authority or housing society and for purchasing of plots through resale from lenders.
  • The LTV (Loan to Value) ratio for a plot loan can be a maximum of 80% which means that you can get a loan amount of a maximum of 80% of the land value. Suppose the value of land is INR 10 lakh, you can get a loan amount of INR 8 lakh. The LTV may change from one lender to another based on your required loan amount and other factors.
  • The processing fees of a plot loan are also quite low and it may change from one lender to another.
  • You must know that there will be no tax benefits on the plot loans taken by you, unlike the home loan where you can get tax benefits on both paid portions of principal and interest.
  • The tenure of a plot loan can be of a maximum of 20 years within which you can easily repay the loan amount.
  • If you are a woman borrower, you can get lower interest rates on the plot loan facility.
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What are the Top Lenders That Provide Plot Loans in India?

Now after knowing about all the features of Plot Loans, you would like to know about the top lenders that provide plot loans to individuals wanting to buy a plot or a piece of land. You don’t need to worry about as we will be telling you about such lenders, their interest rates, and also about their unique features. All that is mentioned below.

ICICI Land Loan

ICICI Bank is one of the leading private banks of India that provides several loan products to needy individuals. Among all these loan options, ICICI Land Loan is one of the most popular facilities among the customers. With the ICICI Land Loan, you can get the required loan amount to buy a piece of land or plot at affordable interest rates. The interest rates may vary according to the loan amount and the borrower type.

With the ICICI Land Loan, you can also get the loan for the construction on your land based on the construction cost estimate. But you must know that this construction must be completed within two years from the date when you opt for the loan. The tenure of an ICICI Land Loan is fixed at a maximum of 20 years. Some of the important details related to the ICICI Land Loan are mentioned in the below table. Do check them out!

Loan AspectsDetails
Minimum Loan AmountINR 8 lakh
Maximum Loan AmountINR 3 crore
Interest Rates For Salaried Borrower7.20% to 8.20% per annum
Interest Rates For Self-employed Borrower7.45% to 8.30% per annum
TenureUpto 20 years
Eligible Age Criteria25 to 65 years
Processing Fee1% of the Loan Amount plus GST charges

HDFC Plot Loan

When we talk about the top home loan providers, it is impossible to not mention the HDFC Limited. HDFC Plot Loan is one of the seamless loan options that you can take if you want funds to buy the plots of your choice. With the HDFC Home Loans, you can get the funds at an affordable rate of interest that helps you in repaying the amount easily. With this, you can purchase the plot through the direct allotment or purchase of a resale plot.

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With this facility, you can even transfer your outstanding loan amount to the HDFC Plot Loan at lower interest rates. You will get several customized repayment options from which you can choose according to your convenience. The maximum loan tenure that you can opt for is fixed at 15 years. The loan to value ratio will depend on your loan amount. Like you can get a maximum of 80% of the property value if the loan amount is below INR 30 lakh.

You can have a look at some of the other details related to the HDFC Plot Loan in the below table.

Loan AspectsDetails
Loan AmountCustomized (Depends on the Property Value)
Interest Rates For Salaried Borrowers (Male)7.10% to 7.95% per annum
Interest Rates For Salaried Borrowers (Female)7.05% to 7.90% per annum
Interest Rates For Self-employed Borrowers (Male)7.25% to 8.10% per annum
Interest Rates For Self-employed Borrowers (Female)7.20% to 8.05% per annum
TenureUpto 15 years
Eligible Age Criteria21 to 65 years
Processing Fee1% of the Loan Amount plus GST charges

State Bank of India Plot Loan

State Bank of India is undoubtedly one of the biggest lenders in India that provides several kinds of loans to the customers. SBI Realty Home Loan is one of the loan products that provide funds with which customers can purchase a plot to the construction of their house. You must remember that the construction of the house must start within the 5 years of the date the loan has been sanctioned. This plot loan by SBI can be taken by any Resident Indian who falls between 18 and 65 years of age.

And not only this, if you want extra funds for the construction, you can opt for another SBI Home Loan to fulfill your needs. The maximum repayment period is fixed at 10 years. Also, SBI charges no prepayment penalty if you decide to pay the loan amount before the fixed tenure, and the interest will be charged on the daily reducing balance. If you decide to opt for this loan with a woman co-borrower, you can get a special interest concession. We are mentioning several other important details related to the SBI Plot Loan in the below table. Do check it!

LIC Housing Finance Plot Loan

If you are looking to get funds to buy a piece of land and make your dream house on it, LIC Housing Finance Plot Loan could be the best option for you. Available at an affordable rate of interest and flexible tenure, you can easily get the loan amount according to your property value. With this loan facility from LIC Housing Finance, you can get upto maximum of 75% of the property value as the Plot Loan.

The repayment can be done by the Equated Monthly Installments (EMI) which will comprise the principal and interest amount. You can repay the amount within a maximum period of 15 years. Women borrowers will also get a special concession when it comes to interest rates on plot loans. We are providing some of the important details related to the LICHFL Plot Loan in the table given below. Check them out!

Loan AspectsDetails
Loan AmountUpto 75% of the Property Value
Interest Rates For Salaried BorrowerCustomized
TenureUpto 15 year
Eligible Age Criteria18 to 65 years
Processing FeeCustomized
Repayment ModeEquated Monthly Installments (EMI)

Bank of Baroda Plot Loan

Bank of Baroda (BOB) is one of the leading public sector banks of India that helps you get the required funds for purchasing the plot or piece of land. Any individual can opt for the Bank of Baroda Home Loan at affordable interest rates. The processing charges are minimal and you don’t need to pay any foreclosure charges in case you want to pay the loan amount before the fixed tenure.

The higher loan amount is another feature that makes a large group of individuals opt for this loan facility. Also, the loan amount can be much higher if you decide to opt with a co-applicant. The loan can be given to both resident and non-resident Indians. The repayment period is fixed at a maximum of 30 years at a floating interest rate option. The loan amount that you will get may vary from one individual to another based on several factors such as the location of the property and the monthly income of individuals.

In the below table, we are providing you some of the important aspects related to the Bank of Baroda Home Loan. Have a look!

Loan AspectsDetails
Loan AmountUpto 75% of the Property Value
Interest Rates For Salaried BorrowerCustomized
TenureUpto 15 year
Eligible Age Criteria18 to 65 years
Processing FeeCustomized
Repayment ModeEquated Monthly Installments (EMI)

So, these are some of the top lenders that provide Plot Loans. Now that you have enough information about these loan facilities, you can make an informed decision. Choose wisely!

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  • Home Loan Interest Rates September 2020
    Axis Bank7.75% - 8.55%
    Bank of Baroda7.00% - 8.40%
    Citibank8.20%
    HDFC6.90% - 7.65%
    ICICI Bank6.95% - 8.05%
    Indiabulls Housing Finance Limited8.80% - 11.05%
    Kotak Bank7.20% - 9.30%
    LIC Housing6.90% - 7.90%
    Piramal Capital & Housing Finance9.00% - 9.10%
    PNB Housing Finance8.60% - 9.45%
    Reliance Home Finance8.75% - 14.00%
    State Bank of India/SBI6.95% - 7.60%
    Tata Capital9.20% - 9.35%