Plot Loan Eligibility
you wish to purchase a plot of residential land in order to build your dream home as per your requirements, then a plot loan is what you need. A plot loan allows applicants to purchase land either through direct allotment or by buying a resale plot.
Leading banks offer affordable interest rates with attractive features and benefits. The eligibility criteria for plot loans vary from bank to bank and is available for residents of India, Non-Resident Indians, and Person of Indian Origin (PIO).
Banks Offering Plot Loans
These are some of the leading banks that offer plot loans in India:
Bank | Eligibility Criteria | ||
Age | Nationality | Profession | |
21 to 65 years | Indian | Salaried or Self-employed | |
Not more than 70 years at loan maturity | Indian | Salaried or Self-employed | |
Bajaj Finserv | 23 to 62 years for salaried 25 to 70 years for self-employed | Indian | Salaried or Self-employed |
18 to 65 years | Indian | Salaried or Self-employed | |
Eligibility Criteria for Plot Loans:
The eligibility criteria for home loans differs based on the plot loan scheme and also the applicant's employment type. Here are some of the standard eligibility criteria for plot loans.
- The applicant must be a resident of India.
- Non-Resident Indians (NRIs) and Person of Indian Origin (PIO) plot loans are offered to a person residing abroad for employment or other reasons and is in India for less than 182 days during the time of preceding financial year.
- Agriculturists & small/marginal farmers are categorized under plot loan schemes based on their holdings of irrigated and unirrigated land.
- Most of the banks require the applicant to be in the age bracket of 21 to 70 years. Depending on if the applicant is self-employed or salaried, the maximum age at the time of maturity will differ.
- Salaried applicants must meet the specified income criteria and must have a constant source of income. Self-employed applicants must have been in the business for a specified number of years.
- The applicant must have a good credit score and clean repayment history.
Factors Determining Plot Loan Quantum:
Apart from plot loan eligibility criteria, certain factors decide the loan quantum that you get. Here's a list of factors that impact your eligibility and loan quantum.
- Assets held by applicant
- Age of the plot loan applicant
- The applicant's repayment capacity
- Co-applicant's asset and income
- Security offered by the applicant to the bank
- Continuity and stability of the income
Your bank might have a preset list of eligibility requirements or calculate your eligibility factor based on certain parameters. Do enquire with the bank to find out more about plot loan eligibility before applying.
How do I find out my eligibility for Plot Loans?
You can visit any of the third party loan comparison websites to know more about the eligibility criteria for a bank. Also, you have to mention some information like the required loan amount, tenure, your annual income, and age to get suitable plot loan offers. Alternatively, you can visit a bank branch and enquire more about the eligibility for plot loans.
Documents Required for Plot Loans:
Now that you have found out your eligibility, you must be informed about the documents required for plot loans to make the loan application process fast. Here are some of the documents that might be asked for when applying for plot loans.
Mandatory Documents:
- Duly filled and signed application form with photographs
- Identity Proof - PAN card, passport, voter ID etc.
- Address Proof - Passport, Driving license, voter ID, ration card etc.
- Latest degree certificate as proof of educational qualifications.
- House documents like title documents and approved plan, as applicable
For Salaried Applicants:
Salaried applicants must submit the following.
- Form 16 for the last 2 years
- Salary slips for the last 3 months
- Latest bank statements showing salary credits
- certificate of employment
For Self-Employed Applicants:
- Proof of business existence and business profile
- latest bank account statements for business and self
- Income Tax Returns for the last three years for business and self
- Profit and loss account statement and balance sheets
For Agriculturists:
- Certificate showing land holdings, if applicable
- Basic KYC documents
Being informed about the eligibility criteria and the documents that will be required will make your loan process hassle-free. Also, if you know the eligibility criteria for plot loans offered by a particular bank, you will be able to choose the best scheme in the market.
FAQs on Plot Loan Eligibility Online in India
- What is the maximum loan amount available for Plot Loans?
The highest loan amount for Plot Loans is determined by the policies of the bank. In most cases, banks typically offer up to 75% of the property's value for a Plot Loan. However, for properties valued at less than Rs. 75 lakh, it's possible to secure up to 90% of the property's value.
- How do you decide which bank to choose for a Plot Loan?
To decide on a bank for a Plot Loan, compare the interest rates, loan amount, and tenure offered by different banks based on your specific requirements. Additionally, check for any special deals or offers that might help you make an informed decision on a suitable Plot Loan arrangement.
- What is the expected time frame for Plot Loan approval?
The bank typically requires at least one week to conduct due diligence and thoroughly review all necessary documents for Plot Loan approval.
- What is the processing fee for a Plot Loan?
The processing fee for a Plot Loan varies depending on whether the borrower is employed or self-employed. It also depends on the chosen loan amount.
- Can a Plot Loan be converted into a Home Loan?
Plot Loans are specifically approved for the purchase of a residential plot of land with the condition that the borrower intends to construct a dwelling on the plot. Banks usually stipulate a timeframe within which the residential property on the purchased land must be built. Upon completion of the house, submitting the finishing or occupancy certificate to the bank enables the conversion of the Plot Loan into a traditional Home Loan. This conversion allows the borrower to avail tax benefits on the Home Loan, which are not applicable to Plot Loans.
- Who is eligible for Plot Loans?
The eligibility for Plot Loans varies based on the scheme and the applicant's employment type. Generally, residents of India, NRIs, and PIOs residing abroad for less than 182 days in the preceding financial year, agriculturists, small or marginal farmers, and individuals aged 21 years to 70 years are eligible. Salaried applicants must meet income criteria, while self-employed applicants need a specified business tenure.
- What factors determine the quantum of Plot Loans?
The loan quantum is influenced by various factors, including the applicant's assets, age, repayment capacity, co-applicant's assets and income, security offered to the bank, and the continuity and stability of the applicant's income.
- How can I find out my eligibility for Plot Loans?
To determine eligibility, visit third-party loan comparison websites that provide details like the required loan amount, tenure, annual income, and age. Alternatively, inquire at a bank branch to learn more about Plot Loan eligibility.
- How do I fast-track my Plot Loan application process?
Understanding eligibility criteria, gathering required documents, and utilising third-party comparison websites or visiting a bank branch for personalised assistance can streamline the Plot Loan application process.
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