While you can avail up to 80-85% funding in a home loan (90% in some cases), for a land loan, the maximum LTV is stipulated at 70% of the plot value at best. Majority of banks do not offer land loans to Non Resident Indians. Even if offered, they may come at a higher interest rate.

How do I borrow money against my land?

A land equity loan is when you borrow against the equity in land that you own. The land may be raw without any improvements, or it may have some infrastructure in place like electric and water lines. Those taking out a land equity loan may own the land outright or have a land loan.

Can I borrow money against land I own?

While it’s possible to borrow against vacant land, it’s usually not easy. Banks like to make loans against collateral that not only has value, but can be easily converted into cash for them. Given this challenge, you may need to look at a different lender than the one you’d otherwise use for most types of loans.

How do I get a loan on land I own?

If you’d like to get a land loan, it’s typically easiest to do so from a community bank or credit union located near the land you’re looking to buy. But depending on what you intend to use the land for, there can be other loan options available to borrowers.

Can a bank loan be used to purchase land in India?

However, some banks do let you use the loan amount to purchase land in a rural area. Check out the loans for land purchase offered by various banks and financial institutions in India:

What kind of loan can I get to buy land?

Land/Plot loan – Banks offer such type of loan to buyers intending to purchase land parcels for constructing their residential units. About 70 percent of the total cost of the land can be availed.

How is a land purchase loan different from a home loan?

It is different from a Home Loan in the sense that Home Loans are offered to buy a ready-to-move-in property. But, a Loan for Land Purchase covers every aspect of the purpose effectively. Apply for this customised secured loan and avail maximum features and benefits.

What are the interest rates on a land purchase loan?

Certain banks offer a concession on interest rates if you’re a woman. Unlike home loans, a loan for land purchase has a much shorter tenure. You may be offered anywhere between 10 and 20 years as the repayment period. Other factors you should consider is the purpose of availing this loan.