Land Loan to Home Loan



I have availed loan for land purchase 3 years back .Recently, We have started construction on the same land and availed home loan for the construction and received first disbursement as well.

Now, I want to convert Land Loan (which was taken 3 years back) to convert it into home loan.Is it possible?

Please guide me alternatives for the same.

Any advice is appreciated!


Hi Kranthi,

As far as we know, it is not possible to convert a land loan to a home loan because they both serve different purposes. Land loans don’t have tax benefits. You can, however, check if there is a balance transfer facility with other banks so that you can transfer your land loan to a bank offering lower interest rates.

BB Expert