Need info on which banks provide loan on NA45 row house


#1

hello,
i am salaried employee, i want to purchase row house but its NA45, i would like to know which banks offer loan on NA45,
also if i take loan from private/co -operative banks , can i ask for tax benefits?

thankx in advance

nikhil


#2

Dear Nikhil,
It will be difficult to answer whether you can get loan for NA45. There are legalities involved in transactions pertaining to NA44, NA45 etc. I would suggest you contact a lawyer for this.

At the same time, you can discuss this with a bank to know exactly what are the rules regarding this. They will also explain you the solution if there is problem with loan.


#3

Hi Nikhil,

You may not get a Home Loan but you can try a land loan. 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.

Even though a land loan is offered for construction of a house, you are not eligible for income tax deduction for payments made towards the repayment of a land loan. However, if you start construction activity on the purchased plot, then you become eligible for tax benefits for that part of the loan.

So, the part of the loan that is used for the construction of a house can be used for tax deduction. The deduction is applicable only from the year in which the construction activity is completed.

Looking for a Home Loan? Click here.

Cheers,
BB Expert