Are you planning to buy a NA plot in Pune in 2023? But you must be thinking about its hefty price tag, right? Stop worrying about the price tag because various banks and Housing Finance Companies (HFC) offer plot loans. However, with so many options available, it isn’t easy to make the correct choice, and here we’ve got you covered. In this blog, we will discuss the top banks that offer plot loans in India in 2023. So, sit back and read on to find out which bank can help you turn your dream of owning a plot in India into a reality.
What is a Plot loan?
Before we delve into the best banks for plot loans in India for 2023, let’s first understand what a plot loan is. Plot loan or Land loan is generally offered by banks or Housing Finance Companies (HFC) to those who aspire to purchase a plot of land and build their dream home or commercial property without having to pay the entire amount upfront. The loan amount can be repaid in easy instalments over a period of time, making it easier for individuals to manage their finances. However, it is important to note that the interest rates and repayment options may vary from bank to bank, so it is essential to research before availing of a plot loan.
How is it different from Home Loans?
Now you may be wondering how it is different from a home loan. While both loans are meant for purchasing a property, there are a few key differences between the two. A home loan is typically used for buying an entirely constructed house or apartment, while a plot loan is meant for purchasing a piece of land or a plot. Another key difference between the two is that the interest rates for plot loans tend to be higher than home loans. And that is because the value of a NA plot can fluctuate over time and may not appreciate at the same rate as an entirely constructed property. And lastly, the repayment tenure for a plot loan is lesser than for a Home loan.
Types of Plot Loans
There are two types of Plot Loans available in India. These two types serve different purposes:
- Plot purchases from Statutory Authorities:
Land purchased from government bodies, local development authorities, etc., is financed in this category. Here banks or financial institutions offer loans up to 75% of the value of the Plot for a tenure of up to 15 years.
- Composite Loans:
If you intend to build within three years, banks or financial institutions can lend you a plot construction loan. You can use 60% of your loan for plot purchase and 40% for construction. The repayment term for plot construction loans can be up to 30 years.
Top Banks for Plot loans in India
No wonder the interest rate is the main factor in choosing the loan provider, as the amount of EMI payable depends on this. Hence, looking for a bank that offers competitive interest rates is important to save money in the long run. Other factors include the maximum loan amount eligibility, maximum tenure of the repayment period, processing time, processing fees and additional charges. The interest rates on plot loans are similar to those on regular home loans or higher.
Here you can find a list of loan providers offering NA plot loans in India based on the affordability for salaried and self-employed applicants.
|Name of Lender||Interest Rates||Maximum Tenure||Processing Fee||Overall Affordability|
|State Bank of India||8.85% – 9.75%||10years||0.4% + taxes||Moderate|
|ICICI Bank||9.00% – 9.80%||20 years||1% + taxes||Moderate|
|HDFC Bank||8.45% – 10.35%||15 years||0.5% – 1.5% + taxes||High|
|Bank of Baroda (BOB)||8.90% – 10.65%||30 years||0.5% – 0.25% + taxes||High|
|Union Bank of India||8.85% – 10.75%||30 years||0.5% + taxes||High|
|PNB Housing Finance||8.50% – 14.50%||30 years||1% + taxes||Low|
|Federal Bank||8.60% – 9.95%||60 months||0.5% + taxes||High|
*Note : The plot loan interest rates as pf 2023, and it may change with time
- Eligibility: The plot and home loan eligibility criteria are almost the same. It offers loans to salaried and self-employed applicants based on their:
- Age ( To be eligible for the plot loan, you must be 18 – 70)
- Employment status (You should be employed or have a regular source of income)
- Credit Score (A good credit score is important for getting approved for a plot loan. You should have a minimum credit score of at least 750 to be eligible for it)
- Income criteria (The applicant must meet the lender’s minimum income requirements)
It’s important to note that eligibility requirements may vary from bank to bank, and it’s always a good idea to check with the bank to determine your eligibility before applying for a plot loan.
Documents required for Plot Loans: There’s a little difference in documentation between a Plot loan and a home loan. Here are some documents you need to apply for a Plot loan:
- Application form
- Age proof
- Income proof
- Employment details / Proof of Business
- Address proof
- Documents related to Plot or Land
- Approved layout/drawing of the Plot
Again, documentation also varies from bank to bank, so it’s essential to with the bank to determine the specific documents required for your plot loan application.
Plot Loan EMI Calculator
You must be curious about your monthly EMI payments! Use the Plot Loan EMI Calculator. Using an EMI calculator will help you to know the amount which needs to be paid as EMI once you avail the plot loan. All you need to do is enter the loan amount, tenure in months, the interest rate and the processing fee and then click on ‘Calculate’; You will get an idea of your EMI amount. Remember one thing, the results are estimates and so speak to a loan officer before making any final decisions.
If you want to purchase a plot in Pune, 46 Banyan Tree is an excellent choice. With its prime location, stunning views, and world-class amenities, no wonder it’s one of the most sought-after addresses in Pune. And when it comes to financing your purchase, there are several banks that offer plot loans at attractive interest rates and flexible repayment options. However, before availing of a plot loan, make sure to do your research and compare the interest rates and repayment options offered by different banks. Choose a bank that offers the best deal and has a good reputation for customer service. With a little bit of research and careful planning, you can make your dream of owning a plot in India
Q. How is a plot loan different from a home loan?
A: A plot loan is used to purchase a piece of land, whereas a home loan is used to purchase a constructed property or to construct a property on a plot.
Q. What are the eligibility criteria for a plot loan in India?
A: The eligibility criteria for a plot loan may vary from bank to bank, but generally, you must be over 18 years old, have a steady income, and have a good credit score.
Q. What should I keep in mind when applying for a plot loan?
A: You should consider factors like interest rates, loan tenure, processing fees, pre-payment charges, and customer service when applying for a plot loan. It’s also important to ensure you meet the eligibility criteria and have all the necessary documents.