Land loan amount


I want land loan. I’m salaried. Can I get? What is the maximum amount?



Land loans are offered by banks and Non-Banking Financial Companies (NBFC) to all Indian residents over the age of 21 years. Some banks also offer land loans to Non-Residents Indians (NRI) if the land is being bought to construct a house.

For Indian residents, land loans are available to both salaried as well as self-employed individuals with a good Credit Score. The only catch when applying for a land loan is to make sure that the plot of land that you want to purchase is a residential plot and not an agricultural or commercial land.

The land also needs to be within corporation/municipality limits. For resident Indians, land loans are available for constructing a residential home on the plot or for purchasing a plot alone.

Unlike traditional Home Loans where loans are available for 90% of the value of under construction or fully constructed property, land loans offer only a maximum of up to 70% of the cost of the plot in urban centers.

If it is smaller cities or towns, the maximum Loan To Value (LTV) ratio for land loans is usually fixed at about 50%-60% of the total cost of the plot. This means that if you are want to buy a plot of land using a land loan, you would have to shell out anywhere between 30% and 50% of the cost as down-payment.

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BB Expert