Housing for All by 2022’ campaign on behalf of the Government of India has led to an upsurge in the residential property industry. There has been a significant rise in the affordable housing sector too, contributing to the promising future of the realty market in India.
Considering the high-end expenditure involved in purchasing houses, individuals often opt for home loans that provide adequate capital to fund a substantial share of their expenses. However, for individuals seeking more detailed customization of their houses, it is always convenient that they go for purchasing lands with a loan for land purchase which is suitable for both salaried and self-employed groups of people.
Indian real estate market has grown substantially over the last few years, and if predictions turn accurate, this sector is about to reach US$ 1 trillion by 2030. Such forecasts are in tandem with a drastic rise in prices of properties. As a natural retaliation to the market scenario, leading financial institutions are providing loans across the most affordable terms and conditions.
Hence, reputed NBFCs offer their tailor-made loans to buy lands that come with attractive features, a simple application process, and nominal eligibility criteria. Here are a few highlights of such loans –
- Eligibility Criteria
Loans to purchase land cater to both salaried and self-employed individuals. The required eligibility criteria vary based on the source of income of a borrower and the lender as well.
The borrower should be a resident of India
The age of an individual needs to be between 23 and 62 (for salaried), or 25 and 70 (for self-employed) years
She/he should have a work experience of 3 years (salaried), 5 years (self-employed)
While salaried individuals can avail land loans with a credit amount of up to Rs. 3.5 Crore, the loan amount for self-employed borrowers can go as high as Rs. 5 Crore.
2. Documentation
Apart from the above mentioned eligibility criteria, she/he should also check out the required documents before going forward with the online application process of a loan for land purchase.
- ID Proof
- Passport-sized photograph
- KYC documents
- Latest salary slip/ Form 16
- Business documents of the last 5 years as well audited balance reports other than ITR
- Address proof
- Bank account statement of the previous 6 months
Additionally, borrowers can also utilize an eligibility calculator to decide which loan amount she/he is eligible for based on her/his income and capacity to repay. One can also check on the variation in the repayment amount based on the tenor they choose.
3. How To Apply
The application process to avail this financial aid has been kept simple keeping in mind the convenience of every applicant.
Step 1: Log in to the official page for the application form of the loan.
Step 2: Provide a few essential details like type of occupation, type of loan, monthly salary, date of birth, e-mail ID, etc.
Step 3: Click on the ‘Submit’ tab.
Now that you know all about availing a loan to purchase land, here is why you should apply for it immediately –
Features And Benefits
While home loans provide borrowers with an adequate credit amount to fund a significant portion of the expenses involved, loans for land purchase cater to people who buy a property with plans to build houses as per their convenience. Hence, land loans from leading financial institutions are extensively preferred and have features like:
- A flexible tenor of up to 240 months
- Instant approval of loans followed by quick disbursal of the credit amount (within 72 hours of loan approval)
- Easy balance transfer facility at nominal charges
Apart from this, one of the significant benefits of loan for land purchase is the tax benefits that it provides. Under the Income Tax Act, borrowers are entitled to claim for a deduction on the interest amount of up to Rs. 2 Lakh. They can also claim for deduction on the principal amount of up to Rs. 50,000.
Make sure that you avail the loan to purchase lands only after calculating the EMI that you are entitled to pay. Avail the best EMI calculator and get an accurate estimation of this amount.
