How to Procure a Bank Loan for a Registered Plot

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A land loan is a financing option meant to be used for the purchase of a land. There are a number of public and private sector banks and other non-banking financial institutions, which give loans for land purchase i.e. Plot Loan.


Eligibility Criteria:

  • You should have completed 21 years of age.
  • You should have a regular income either through your job or a business, which can be validated by banks on the basis of Income Taxes or revenues.

Loan Amount:

  • Maximum 80-85% of the cost of the plot, depending on which banking/financial organization offers you loan
  • May vary depending on the loan eligibility of the customer

Loan Tenure: 

It varies from bank to bank that ranges from 10 to 15 years. However, some banks especially the private ones allow the tenure to be less than or equal to 5 years and the tenure is fixed based on the current income. Most of the financial institutions are somewhat reluctant in granting a loan-tenure for 10 years and information on tenure can be sought by bank officials.


Process for Plot Loan:

At first, you have to fill an application form with passport size photos for applying the loan in a respective bank and submit it with proper documents. Bank will charge you 1-2% as processing fees.

Documents required by bank for land loan:

1. Documents related to the customer:

  • Two passport-size photos, PAN Card, Passport, Employee ID (if you are a salaried individual), Visiting card 
  • Residential Address Proof : Ration Card, Telephone Bills (Land line, some banks only accept bills of government-run telecom operators’ like BSNL,MTNL etc.), Mobile Bill (Post-paid) or letter from employer to confirm your residential address
  • Last 4 months payslips along with latest CTC (Cost-To-Company)
  • Appointment letter, relieving letter/experience letter (if your present employment is less than 3 years)
  • Form 16 for last 2 years along with acknowledgement from IT 
  • Bank Statement of all accounts for 6 months. One cheque from salary account for processing fees
  • Qualification proof 

2.Documents related to plot:

  • Mutation Register Extract
  • Sale Deed
  • Encumbrance certificate
  • Document/Title deed in the name of the vendor/buyer
  • NOC from the State Pollution Control Board
  • Endorsement from the office of the competent authority confirming that the land is free from tenancy claims
  • Tax receipts for taxes paid by the owner of the plot of land
  • Layout plan, if it is a private layout
  • Land record for the plot of land

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