Are you contemplating on the idea of buying a plot in Bangalore? Whether it’s for investment purpose or building your home, owning a block of land secures your future.
With the options to easily avail loans from banks and financial institutions, you shouldn’t keep postponing the thought of buying a land. Because the real estate prices in Bangalore are shooting up. And if you delay, you might end up buying the same land for a higher cost a year or two later.
In this post, we will help you understand everything about plot loans. So you can make an informed decision while applying for a plot loan.
Land Loans are mostly referred to as Home Loans. However, both are entirely different.
Simply put, land loans or plot loans are offered to buy a piece of non-agricultural land for residential/commercial purposes. The block of land you are buying would come under the limits of municipal/local government bodies.
Basically, when you are applying for a land loan, you have two options to choose from. One is Composite loan, and the other is Land Loan.
Composite Loans are land loans that come with a clause, warranting you to construct a building within a particular period. Usually, the time frame is two years, but there are financial institutions that even offer five-year stipulation time to start the construction.
Composite loans would actually cover the construction costs, as well.
On the other hand, Land Loans just cover the cost of the plot you are buying. Unlike composite loans, this will give you the option to apply for a construction loan in the future.
Your repayment capacity is the foremost concern for banks and financial institutions to offer loans. Hence, you would be considered eligible only if you meet the following criteria:
One of the commonly asked questions by our prospects at Sizzle Properties is ‘How much EMI should I pay?’
This is mainly because everyone is worried whether they could pay the monthly installment without making a dent in their monthly budget. And if they think the EMI is within their budget, usually they go ahead and apply for land loans.
Now, without getting too technical, we will give you a fair idea about the EMI you need to pay for land loans.
Roughly (Approximately), the EMI would be 1% of the loan amount.
For instance, if you take a loan for 1 lakh, your EMI would be 1000 rupees every month. The EMI varies depending upon the loan tenure. The rates normally decrease with the increase in tenure, but your interest rates would increase.
The best recommended to approach a reputed builder like Sizzle Properties to buy a Plot.
We hope this information would help you ease and quicken your decision-making process while buying a plot. If you need further clarifications about loans for your property, please drop a comment below, and we will do our best to address your queries.
And if you think this post would help anyone, please feel free to share it with them.
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