Need Help Regarding Land Purchase Loan in Varanasi?

Need Help Regarding Land Purchase Loan in Varanasi?

A land purchase could be very rewarding in the future. However, in today’s time, it will cost you a fortune to buy land. And this is where a land purchase loan comes into the picture. Wish to know more about a land purchase loan in Varanasi? Well, this is the blog for you. Hang tight and read till the very end.

A sneak-peek into land purchase loan A land purchase loan enables you to purchase a piece of plot or land that can later be used for the construction of commercial or residential premises. Many people confuse a land purchase loan with the loans extended by the home loan providers in Varanasi, however, both are different as day and night. Let’s go through the features of a land purchase loan in Varanasi.

Features of land purchase loan Following are some features of a land purchase loan that distinguishes it from a home loan Varanasi.  A land purchase loan comes with an upper limit.

Here, the maximum limit for which the loan for land purchase can be availed is decided by the risk management arm of the bank/lender. The upper limit on loans for land purchase varies across banks.

 A land purchase loan has a longer repayment tenure.

Unlike home loans, which usually have a longer tenure of say 20-30 years, a land loan has a relatively shorter tenure of say 15-20 years. The tenure of the land loan depends on the profile of the customer, his age at the maturity of the loan as well as the age of the property during the loan maturity.

 It has pre-specified clauses.

If you wish to opt for a land loan, do keep in mind, there are certain prerequisites that you will have to observe. The most prominent clause of any land loan is that it requires the borrower to begin construction on the acquired plot of land within a specified period.

In addition to that, there is a commencement clause. Many people indulge in land purchases for speculative purposes. However, sometimes people confuse the purpose of a land purchase loan with that of home construction loans in Varanasi. A commencement clause ensures that if you do not commence the construction within a stipulated period, your lender can increase your interest rate up to 2% on the plot loan. You may also be asked to pay the remaining loan balance and discontinue the loan. You can avoid all these issues by ensuring the grace period allowed under the loan agreement and starting construction within the predetermined period.

 You might end up paying a prepayment penalty.

A plot or a land loan is different from a home loan in Varanasi offered by a loan agent in Varanasi, hence it is quite possible that the loan provider may levy a prepayment penalty. You must enquire specifically about this with the loan provider.

Sounds great? Well, wondering about the eligibility criteria. Here, you go.

Are you eligible for a land purchase loan?

Any Indian citizen above 21 years of age can avail of the loan for land purchase. The set of documents required for the same are:  Latest photograph of the applicant  Photo Identity Proof  Residence Proof  Last 3 months' salary slip  Last 6 months' bank statement  Form 16  A cheque for the loan processing fee For an availing loan for a property purchase, it is very important that the authentic documents related to the land are submitted to the lender. In the subsequent section, Bhumi Finance has specified the documents required to be attached to a land purchase loan application.

Documentation for a land purchase loan These documents include:  Copy of Allotment Letter / Buyer Agreement  Title Deeds including the previous chain of property documents in resale cases  'No Encumbrance' Certificate for the plot  Layouts/drawings of the plot duly approved by the Town Planning Authority.  Revenue receipts  Land records  Tax receipts for taxes paid by the landowner Wish to get a land purchase loan at a lucrative interest rate? Reach out to Bhumi Finance now at https://bhumifinance.com/.

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