Prev Post
Maharashtra Cabinet Abolishes Colonial-Era Non-Agricultural Tax, But Uncertainty Persists
Buying a plot of land is a significant investment decision, whether you plan to construct your dream home in the future or hold it as a long-term asset for capital appreciation. However, unlike home loans, plot loans come with unique terms, eligibility criteria, and interest rates. Choosing the right bank for your plot loan is crucial to ensure affordable repayment options and smooth processing.
What Is a Plot Loan?
A land loan is a type of financing offered specifically for purchasing residential plots. While home loans cater to the construction or purchase of ready homes, plot loans are designed for the purchase of land.
Higher Interest Rates: Plot loans typically carry higher interest rates compared to home loans due to the higher risk associated with lending for land.
Shorter Repayment Tenure: Unlike home loans, which can extend up to 30 years, plot loans usually have a tenure of 5–15 years.
Strict Approval Norms: Banks evaluate factors such as the location of the plot, land title clarity, and zoning regulations before approving a loan.
Factors to Consider Before Applying for a Plot Loan
Before applying, you should take into consideration:
1. Eligibility: Banks have eligibility criteria that mandate applicants to be Indian residents, of a particular age group (between 21 & 65 years), and have a fixed source of income.
2. Amount of Loan: The banks will finance a maximum of 50%-80% of the cost of the plot, depending on the location and market price.
3. Type of Interest Rate: Banks can offer fixed interest rates or floating interest rates. The latter is subject to change based on market situations.
4. Processing Fees & Other Charges: Some banks charge a processing fee, a document charge, or a prepayment charge.
5. Land Title Verification: A good and marketable title to the land is a must before any lending takes place. Banks can demand a legal confirmation of the title.
Top Banks for Plot Loans in India
Several banks in India have introduced competitive plot loan schemes. Some of these include:
1. State Bank of India (SBI): SBI is a widely used bank for plot loans, which provides a mortgage facility up to a maximum of 80% of the cost of the plot, based on location and eligibility. The interest rate charged is quite competitive, too.
2. HDFC Bank: HDFC Bank provides plot loans for residential plots in both urban and semi-urban regions. The repayment term can be anywhere from 5 to 15 years, and interest can be fixed or floating.
3. ICICI Bank: ICICI Bank offers plot loans with simple documentation and processing steps. The quantum of loan may vary depending on the plot's location, and the bank charges a competitive interest rate with flexible repayment terms.
4. Axis Bank: Axis Bank is famous for providing plot loans with high LTV ratios and fast approval procedures. They offer such schemes to both salaried and self-employed people.
5. Punjab National Bank (PNB): PNB provides plot loans with competitive interest rates and flexible repayment terms. Additionally, PNB offers top-up loans to construct more spaces after acquiring a plot.
Conclusion
Planting a plot is a long-term financial investment, and selecting the right bank for a plot loan is critical. Prior to applying for a plot loan, you need to check your eligibility criteria, interest rate, and other requirements. To get a better deal among various banks such as SBI, HDFC, ICICI, Axis Bank, and PNB, you can choose a plot loan according to your budget and future investment.
Join The Discussion
Related posts
December 17, 2025
Welspun ONE will build a logistics park in Pune's Talegaon
In order to support Pune's expanding logistics ecosystem, Welspun ONE has announced plans to build a massive logistics park in Talegaon, Pune, with a total investment of ₹550 crore.
Continue Reading
December 17, 2025
Maharashtra Cabinet Abolishes Colonial-Era Non-Agricultural Tax, But Uncertainty Persists
The Maharashtra government’s recent decision to abolish the Non-Agricultural (NA) tax has been welcomed across urban housing societies.
Continue Reading
December 17, 2025
Buying a Residential Plot: How to Evaluate Its ROI
Buying a residential plot is often viewed as one of the most lucrative long-term investments. Unlike apartments, land does not depreciate with age and gives the owner the flexibility for usage in the near or far future.
Continue ReadingTags
Bhunaksha,
genuine plots,
Land For Sale,
Maharashtra Bhunaksha,
plots for sale,
Gunthewari,
Gunthewari Land,
Gunthewari Rules,
Extract Documents,
Plots and Lands,
Saat Baara,
Extract Saat,
Baara Utara,
Jamabandi,
property tax payments,
Gram Panchayat,
lower prices,
non-agricultural land,
Lower Investment Cost,
Gram Panchayat lands,
Fresh Land Settlements,
Growing demand,
affordable homes,
genuine p,
legal Land,
bungalow plots,
Konkan,
Maharashtra,
Purandar,
Pune,
Karnataka,
Bangalore,
Farm Land,
Kolkata,
Rajarhat,
Indore,
Chhatrapati Sambhajinagar,
Aurangabad,
Mundhwa,
Agricultural Land,
Farmhouse Plot,
Rules And Penalties,
Residential Plots,
NA PLots,
Residential NA Plots,
Commercial NA Plots,
Animal Husbandry Land,
Tathawade,
Vahivat Land Maps,
Vahivat,
Indian Land Records,
Ownership Rights,
Red zone,
PCMC,
Dehu Road,
Land Registration Rules,
Land Investing,
Infrastructure Growth,
Land Ownership,
Land Encroachment,
Panshet Dam,
Varasgaon Dam,
Verified Land,
Plot For Sale,
Land Investment,
Verified Plots,
Land Acquisiton,
Hydrological Survey,
Invest In Land,
Verified Land Plots,
Panshet,
Khadakwasla,
Land Rules,
Dakhil Kharij,
Land Registry,
Property Onwership,
Clean Title Check List,
Property Verification,
Digital Registry,
Farm Plots,
Agro Property,
Land Value Growth,
Urban Expansion,
Senapati Bapat Road,
Registered Land,
Agricultral Plot,
Purandar Airport,
Safe Investment,
Secure Property,
Plot Buyers,
Approved Plots,
Land ROI,
NA Approved Plots,
NA Land,
Welspun One,
Logistic Park,
Talegaon,
