Real estate is among the safest investment options that have a scope of massive gains. Most Indian people often invest in plots for future exponential increases. Some people buy a piece of land to construct their dream home on it. Others purchase it for commercial purposes. Purchasing a plot in a developing area will always offer high returns.
People often stumble upon a good land but do not have the required funds. There is no point in letting go of a good plot because someone else will buy it soon. With the help of a land/plot loan, one can get the money needed to buy a piece of land. With PNB Housing, you can obtain a loan for land purchase without much hassle.
Read on to learn how to get a plot loan in India and its feature.
What exactly is a plot loan?
A plot loan is offered to purchase a piece of land in a particular region. The plot bought is used for residential purposes. People can also buy a home directly from development authorities with the help of a loan. A plot loan is secured because the land bought works as collateral. If the applicant refuses to return the loan amount, the lender has the authority to recover the costs by selling the plot.
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Any loan taken by a bank must be repaid in due time/tenure. Similarly, a plot loan is repaid to the lender with affordable EMIs. Each EMI for a plot loan will consist of the principal component and the interest charges. Since a plot loan is secured, the interest rates are usually lower than unsecured loans. Also, you will not get the total value of the plot as a loan. Banks typically offer up to 70% of the plot value as a loan; sometimes, it can even go up to 75%. With PNB Housing, you can get the best interest rates for a plot loan. One can always reach out to the home loan customer care number of PNB Housing for more information.
Eligibility for a plot loan in India
Before applying for a plot loan, the applicant has to meet the eligibility requirements. The plot loan application can be rejected for not meeting the minimum eligibility criteria. For the same reason, it is better to check the eligibility criteria for a plot loan beforehand. The eligibility criteria for PNB Housing plot loans are as follows:
- Plot loans are only offered to people with a stable income source. Therefore, the loan applicant should be either salaried or self-employed.
- The applicant’s credit score should be 750 or more to acquire a plot loan.
- At the time of plot loan maturity, the applicant’s age should not go beyond 70 years.
- With the help of PNB Housing LTV policies, the loan amount is determined according to the plot’s current market value.
How to apply for a plot loan with PNB Housing?
After checking the eligibility criteria, it is time to apply for a plot loan. PNB Housing allows individuals to fill and submit plot loan applications online on their official website. The plot loan application form should be duly filled with all the required details. The loan provider will reject incomplete plot loan applications. The loan application is accompanied by several documents, which are compulsory. Some essential documents required with the plot loan application are as follows:
- PAN card, passport, or any other ID that can act as an age proof
- Driving license, Aadhar card, or any government ID that can serve as address proof
- Proof of educational qualifications
- Applicant’s bank account statements for the past six months
- Applicant’s salary slips for the past three cycles
- Title documents of the plot
If still confused about the documents required for a housing loan, you can reach out to a bank representative. A loan for land purchase can quickly remove the overhead burden of collecting a lumpsum amount. Apply for a plot loan instantly with PNB Housing!
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