Eligibility for Land Purchase Loans:
Any individual aged 21 years or above having regular income is generally eligible to apply for land Purchase loan.
Maximum Amount of Loans:
The quantum of loan sanctioned, depends on a number of factors like the cost of house/flat, person's age while applying for loan, income, repayment capacity etc. Loans of higher amount may be considered on the basis of merit of the case. The loan can then be repaid through Equated Monthly Installments or EMI. The loan is payable maximum in years.
Margin for purchase or construction of new house/flat:
Minimum 15% of the project cost for individual
Minimum 10% of the project cost in case wife joins as co-borrower
Margin for purchase of old house/flat/land:
Minimum 30% of Purchasing value. This value may vary from bank to bank.
Interest on Land Purchase Loans:
Interest on both fixed as well fluctuating rates are available. The actual interest rate is governed by prevailing market conditions at the time of taking loan. Special reductions in interest rates may sometimes be allowed for women and in other special conditions. A nominal processing fee of 1% of amount of loan taken is generally charged by banks.
Documents Required for Approval of Land Purchase Loans:
Businessman/ Self employed professional:
Application form with photograph
Educational qualification
Identity and residence proof
Proof of business existence with business profile and last three years income tax return
Last 3 years income statement and balance sheet.
Last 3 month's personal and business bank statements.
Processing fee check
Salaried customers:
Application form with photograph
Identity and Residence proof
Latest salary slip
Form16
Last 6 months bank's statement
Processing fee cheque.
