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What are Land Purchase Loans?
Land Purchase loans are used by customers who wish to purchase
a plot of land for commercial or residential purpose. Everyone
has his/her dream perfectly sketched in his souls and so is
his ambition to get his house erected on the exact location
he dreamt that to be. If you have found and shorlisted the
piece of land, and have arrived here for finance, you have
come to the best place you could have arrived in the web.
Now, that you have decided to purchase a land as an investment
or for your own dream home, you will realize that a land purchase
loan is one you will cherish.
Loans that are strictly for
land purchase can be as scarce as good residential plots.
While many lending firms around the nation compete to provide
mortgages for the purchase of a house on a lot, only local
institutions typically will be interested in lending for an
empty lot.
Eligibility:
21 Years and above having
regular income is applicable.
Maximum Loan:
85 % of the cost of the
plot and is also based on the repayment capacity of the customer.
Maximum Term:
15 years, this of course
takes into consideration your retirement age.
Advantage(s):
- Is generally a smaller loan than a home mortgage
- You can purchase your land, then take your time building
your home
Disadvantage(s):
Land loans can carry higher interest rates and bigger down
payments than conventional mortgage loans, to reflect the
increased risk.
Process of Home
Extension Loans Application:
Customers can fill online application forms or personally
visit the bank for approval of loan. A nominal fee of 1-2%
is charged as processing by the banks.
Documents Required by Banks for the approval of Land Purchase
loans:
Salaried customers:
1. Application form with photograph
2. Identification and Residence proof
3. Latest salary slip
4. Form16
5. Last 6 months bank's statement
6. Processing fee cheque.
Businessman/ Self employed professional:
1. Application form with photograph
2. Educational qualification
3. Identity and residence proof
4. Proof of business existence with business profile and last
three years income tax return
5. Last 3 years income statement and balance sheet.
6. Last 3 month's personal and business bank statements.
7. Processing fee check
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