Financing a plot purchase is different from financing an apartment. Understanding how bank loans work for land purchases can save you time and money.
Loan-to-Value (LTV) Ratio
Most banks offer up to 70-80% of the plot value as a loan, depending on the location and approval status. The remaining amount must be arranged as a down payment.
Eligible Banks
Major banks like SBI, HDFC, ICICI, and Axis Bank offer plot loans. Interest rates are typically 0.25% to 0.50% higher than home loan rates.
Documentation Required
- Sale deed and chain of title documents
- Approved layout plan
- Encumbrance certificate
- Property tax receipts
- Income proof and KYC documents