A land loan is a financing option meant to be used for the purchase of a land. There are a number of public and private sector banks and other non-banking financial institutions, which give loans for land purchase i.e. Plot Loan. Eligibility Criteria: Loan Amount: Loan Tenure: It varies from bank to bank that ranges from 10 to 15 years. However, some banks especially the private ones allow the tenure to be less than or equal to 5 years and the tenure is fixed based on the current income. Most of the financial institutions are somewhat reluctant in granting a loan-tenure for 10 years and information on tenure can be sought by bank officials. Process for Plot Loan: At first, you have to fill an application form with passport size photos for applying the loan in a respective bank and submit it with proper documents. Bank will charge you 1-2% as processing fees.
Documents required by bank for land loan:
1. Documents related to the customer:
- Two passport-size photos, PAN Card, Passport, Employee ID (if you are a salaried individual), Visiting card
- Residential Address Proof : Ration Card, Telephone Bills (Land line, some banks only accept bills of government-run telecom operators’ like BSNL,MTNL etc.), Mobile Bill (Post-paid) or letter from employer to confirm your residential address
- Last 4 months payslips along with latest CTC (Cost-To-Company)
- Appointment letter, relieving letter/experience letter (if your present employment is less than 3 years)
- Form 16 for last 2 years along with acknowledgement from IT
- Bank Statement of all accounts for 6 months. One cheque from salary account for processing fees
- Qualification proof
2.Documents related to plot:
- Mutation Register Extract
- Sale Deed
- Encumbrance certificate
- Document/Title deed in the name of the vendor/buyer
- NOC from the State Pollution Control Board
- Endorsement from the office of the competent authority confirming that the land is free from tenancy claims
- Tax receipts for taxes paid by the owner of the plot of land
- Layout plan, if it is a private layout
- Land record for the plot of land