A Complete Guide on Plot Purchase Loan- Features and Benefits

The Indian real estate market has seen a steep rise to $120 billion in the year 2017. More than just residential properties, individuals are now keen to acquire properties with an eye towards future urban developments or at least value appreciation.

Accumulated savings and other investments are rarely able to suffice the required funds to make such purchases. External financial assistance such as plot purchase loans helps investors acquire new properties. These secured advances are customized to aid borrowers to purchase a new plot without becoming a financial burden.

Here are the top features offered by leading lenders on plot purchase loans-

1. Substantial Loan Amount

You can avail substantial loan amounts up to Rs. 3.5 Crore which can be used to fund the plot purchase. 

2. Prolonged Tenure

These loans provide you with flexible and prolonged loan tenures of up to 20 years. Having a prolonged tenure also helps in making the EMIs affordable, thus reducing the monthly loan burden. 

3. Instant Approval and Faster Loan Disbursal

To feed the urgency of buying a plot, such loans for land purchase provides instant approval in 5 minutes and a faster loan disbursal amount in 3 days.

4. Minimal Documentation Process

These loans are provided against minimal documentation. However, you will have to provide a standard list of all the documents you need for a home loan or land purchase loan including -

• KYC documents- Such as Aadhaar card, PAN card, voter ID, passport, driving license. 

• Address proof- Such as water bill, gas bill, electricity bill, telephone bill, etc. 

• Income proof- IT returns bank account statement of the last 6 months, etc. 

In addition, your lender may ask for other documents such as business vintage proof for a self-employed applicant and salary slip for a salaried applicant. 

5. Convenient Eligibility Criteria

The eligibility criteria for such plot purchase loans are as follows -

• Age- An age bracket of 25-70 years is allowed to a self-employed applicant. If you are a salaried employee you will have to be within the age bracket of 23-62 years.

• Income- You should have a regular source of income with a considerable amount. 

• CIBIL score- A CIBIL score of 750 and above will be required. 

Besides the above, you will have to be a resident of India, residing in any of the cities where your lender operates. You can also consider calculating your eligibility using the eligibility calculator available on your lender’s website.

6. Balance Transfer Facility

You can choose to transfer your existing loan outstanding amount to another loan with a lower interest rate. You can increase your loan tenure and also reduce your EMIs with a home loan balance transfer facility.

7. Easy EMI Options

These loans offer flexible EMI options to make the repayment process convenient. You can use the housing loan EMI calculator available on your lender’s official website to calculate your EMIs.

8. Easy Application Process

The application process for such a plot purchase loan is easy and can be completed online. To apply you have to visit the official website of your lender and fill the application form by sharing your personal and financial details. Once you submit the application form, a representative of your lender will visit you to collect the above-mentioned documents and your amount will be disbursed accordingly. 

These loans also come with minimal or no part-payment and foreclosure charges along with online account access. However, to enjoy such benefits, make sure to inquire about the interest rate and other applicable charges on your loan and pay your EMIs on time to avoid hefty penalties and accumulation of debt.