Tired of living in concrete cages, many families are looking to build a house these days. While the modern flat system has many amenities, the Singh family wanted to live in a house of their own with a small backyard to grow seasonal vegetables, a garden in the front and room for everybody to sit in the open. When you own a plot of land, your family can have all the space for themselves. The cost of plots was high, and so the Singh’s looked at financing options. Let us find out how they got a home loan for a plot.
Plot loans are those given to buy a house. While the concept of home loans ideally is meant for buying flats, little do people know that a home loan can be availed for a plot too. At Tata Capital, home loans are given for self-construction, plot plus self-construction, home improvement/renovation and home extension. Once you purchase the land, construction is carried out subsequently.
The tenure of home loans for the plot is similar to a flat loan, with a minimum and maximum tenure of 12 months to 360 months. If you thought that the cost of land makes such loans out of reach, you could not be more wrong. Home loans are available from Rs 2 lakh to Rs 10 crore for residential properties. The Singh family only needed to buy is a plot that is a non-agricultural land situated preferably within municipal/local development authority limits.
Traditional avenues like banks will always be wary about giving a loan for buying a plot. This is where new-age NBFCs like Tata Capital bridge an important gap and help customers like the Singh family. We at Tata Capital understand your needs and your specific circumstances and then offer customized home loans. At the same time, we offer the right repayment option, loan tenure, and extremely competitive interest rates.
While buying a plot via the home loan route, you may come across the Loan to Value Ratio (LTV). This ratio basically implies to the sum of loan you can get for a real estate property such as a plot. When you want to buy a plot of land, loans can fund almost 70-75% of the plot cost if its high priced plot, which reduces your burden of financing to a great extent. In case the plot cost is less than Rs 20 lakh, expect 85-90% of property cost to be financed by the loan. The head of the Singh family, Mr.Rajwinder applied for the plot loan jointly with his wife, Sarah. Usually, all proposed owners of the property will have to be co-applicants but it is not necessary for all co-applicants to be co-owners.
With extremely attractive interest rates, bullet-speed disbursement and minimal paperwork, a Tata Capital home loan for plot making your dream of having own house a quick reality. When applying for the loan, besides the filled form salaried individuals need to submit just a photograph, identity and residence proof, a copy of latest salary-slip, form 16, last 6 months bank statements and processing fee cheque. Mr. Singh is a businessman. So instead of salary slip, and form 16, he was required to submit education qualifications certificate, proof of business existence, last 3 years income tax returns (self and business) and profit/loss statement and balance sheet.
Within a fortnight, home loans for a plot are ready with the sanction, if all documents are okay and processes have been complied with. Applicable interest rates (monthly rest basis) for salaried customers and doctors are 8.75-8.8% for a home loan below Rs 75 lakh. If the total amount is above that, there is a minor 5 basis point increase. For self-employed, loan amount below Rs 75 lakh is given at attractive 8.90% and above Rs 75 lakh at a competitive 9.05%* without any hidden charges. Tata Capital Home Loan appealed the most to Singh family due to repayment flexibility, easier norms, quick disbursal and the trust in Tata brand. They finally had their long-cherished dream come true.
Don’t worry about land plot cost when planning to build your own house. We at, Tata Capital, will help you live your dreams.