Are you looking for the best investment option? Buying a plot is a profitable option. You can buy this land for the construction of a personal home or for commercial use. Banks and non-banking financial companies offer a loan for plot purchase. Before you apply for a loan, it is best to consider a few points.
- Type of land and construction: This loan is available on the land that is suitable for residential and commercial purposes. The type of construction purpose also decides the loan and related factors like interest, tenure, etc. The lenders do not finance agriculture land.
- Geographical limitation: Lenders for a land loan also have a specific restriction to certain geographical locations. Always prefer land that falls within the geographical regions where loans are easily available from banks and NBFCs.
- Interest rate: The interest rate for a loan for plot purchase is the same as that of home loan. Just use loan EMI calculator to estimate the EMI you can pay based on the earning and interest charged on it.
- The loan amount and tenure: Decide the loan amount you take and the tenure you pick. The tenure can vary from 10-20 years. A borrower with a better credit score can pick the tenure as per repayment capability.
- Know the purpose of purchase: At the time of availing the loan, lenders may ask the purpose of purchasing the land. A good reason definitely develops confidence in lenders regarding the repayment.
Going For A Home Loan? Read This – 6 things to keep in mind before applying for a land purchase loan