How to Get a Loan for Land Purchase

Low-Interest Personal Loan

A Home Loan or a loan for land purchase is understood as a loan taken to purchase a residential property by an individual or a person or from a known bank as well as any other financial institution at a given rate of interest. One must ensure to pay such a loan back in Equated Monthly Instalments popularly abbreviated as the (EMIs) to numerous banks. The ultimate purpose of opting for a suitable Land Purchase Loans is to buy a plot of land for the purpose of constructing a reputed residential property or for any investment as opposed to the different Home Loans at low-interest personal loan.

If in anycase a person is still confused between the two? Worry not, in this blog article; let us dive into the similarities as well as the points of difference varying between both kinds of loans to offer a person with an improved comprehension of them.

What are the similarities varying between Home Loan as well as the Land Purchase Loan?

Here are some of the general points varying between these two types of loans:

• Application process: A similar due diligence process is usually undertaken for both kinds of loans; therefore the application process is just the same too.
• Eligibility criteria:

• Applicants must be either salaried or self-employed.
• Applicants’ age must ensure to be above 21 years old while applying for the purpose of the loan.
• Salaried individuals should ensure to showcase a minimum income of Rs. 10,000 p.m.
• Self-employed individuals must also showcase a minimum business income of about Rs.2 Lakh p.a.
• Applicants must withhold an essentially good credit score.
• EMI options: Most of the EMI options provided for Home Loans are enlisted as the following:

• Home Loan EMIs with a moratorium
• EMI on Home Loans with overdraft option
• Home Loans with increasing EMI option

Briefing the major differences between Home Loan and Loan for Plot Purchase such as the Land Loan

Mentioned Documentation Requirements and Fees to avail a Home Loan or a Land Purchase Loan

Making sure to ease out a low-interest personal loan application process, ensure to have a look at the following documentation requirements for it priorly:

For Home Loan:

• Duly filled application for the purpose of Home Loan along with multiple copies of these photographs.
• Bank statements of the past 6 months.
• Residence and identity proof.
• Fee cheque for processing.
• Most recent salary slip/ proof of business/ educational qualification certificates.

Agriculturists who usually require a Home Loan require to submit certain more documents as mentioned below:

• Title of the documents of agricultural land that essentially proves landholding.
• Statements of the previous 2 years of availed loans must be mentioned.
• Copies showcasing cultivated crops on the purpose of land could also be in the form of numerous title documents.

For Land Purchase Loans:

For the purpose of making the loan documentation process easier and faster for a Land Loan, some of these are the needed documents:

• Signed and filled application form with photographs.
• Numerous identity proofs such as the passport, PAN card, voter ID, etc.
• Essentially required address proof for instance- voter id, ration card, driving license, passport, etc.
• Educational qualification- most recent degree certificate.
• Housing documents- approved plans, title documents etc.

Along with the required documentation mentioned as above, for an actual agriculture Land Purchase Loan, one must also require to submit the following:

• Basic KYC is also abbreviated as the (Know-Your-Customer) documents for instance Aadhaar Card, PAN Card, and so on.
• Certificates that showcase the landholding.

A bank account statement of the Savings Account might come as handy while they tend to apply for a low-interest personal loan for a home or land, along with other related required documents.