Fact: Not all homebuyers have the same housing preferences. While some favour pre-built houses and apartments, others look to buy a plot and build a house aligning with their space and aesthetic needs. If you fall into the second category, you might require a considerable amount of funding to purchase a plot and realise your housing goals.
Thankfully, numerous lenders in the Indian market now offer affordable plot loans that allow you to purchase land and construct the house of your dreams.
If you’re wondering what a plot loan, read on to find out.
What is a plot loan?
As the name suggests, it is a loan for buying plotwhere you plan to construct a house in the future. You can avail of these loans at affordable interest rates and repay it through easy EMIs for a tenure of your choice.
Also known as land loans, plot loans are often confused with housing loans. The main difference between a plot and a housing loan is that you can only use a plot loan to purchase a piece of land. On the other hand, a housing loan can be used to buy an under-construction or a ready-to-move-in apartment, flat, or villa. Some lenders, like Tata Capital, offer home loans that you can utilise for a variety of purposes, including plot purchase.
Additional Read: Difference between a Home Loan and a Plot Loan
Eligibility criteria for plot loans
Although the eligibility criteria may vary from lender to lender, here are the conditions you must fulfil while applying for home finance with Tata Capital:
- You must fall into the age bracket of 24-65 years.
- If you’re a salaried employee, you must have a minimum salary of Rs. 30,000, along with at least two years of work experience
- If you’re a self-employed individual, you must have been in business for a minimum of three years
- If you’re an NRI, you must be a salaried individual with at least three years of work experience
You can either visit a lender’s nearest branch or their official website to get detailed eligibility information. Several lenders also offer online eligibility calculators for quick eligibility calculation.
Documents required to avail of a plot loan
Here’s a list of standard documents you must provide when applying for a plot loan with Tata Capital. Note that the documentation requirements may differ from one lender to another.
- Duly filled and signed loan application form
- Passport size photographs
- Residence proof
- Photo Identity proof
- Income proof, including salary statements for the past 6 months
- Bank statements for existing loan details
- Processing fee cheque, issued from the salary or business account
- Last 3 months’ salary slips
Additional Read: Home Loan for Purchasing Residential Plot
Are you looking to purchase a plot for your housing goals? Well, you’re in the right place! Tata Capital’s housing finance options come with attractive home loan interest rates and flexible repayment options, leaving little to be desired. Moreover, with our easy-to-meet eligibility criteria, minimal documentation requirements, and swift loan processing, you will have the required funds in no time!
Head over to our website now to check your home loan eligibility.