Loan for Plot Purchase

Plots are a sensible investment and aid in the construction of our dream home. Plot loans help borrowers in fulfilling their dreams of a comfortable life by offering unique features and benefits to suit their needs. 

In this article, we will discuss what is a plot loan, its features, and how a borrower can avail benefits of a plot loan.

What Is The Eligibility Criteria For Plot Loans?

The following are the eligibility criteria for a plot loan.

Please note, the eligibility criteria are unique to each lender and change according to their terms. 

What Are The Required Documents For Plot Loan?

Borrowers must submit the following documents to avail of a plot loan.

Which Bank Is Best For Plot Loan?

In India, several banks offer plot loans with features customized to the borrowers' needs.

Advantages Of A Plot Loan

Borrowers applying for plot loans are eligible for tax benefits but only after the construction of a house on the property.

Additionally, the tax deductions are only valid for the year that construction is finished. Following the completion of construction, you can take advantage of these tax benefits.

Tax Benefit Under Section 80C

In accordance with Section 80C of the Income Tax Act, you are eligible to claim a deduction of Rs. 150,000 from the principal repayment portion of the plot loan. 

The term "principal amount" refers to the precise loan amount that was obtained from the lender; it excludes any interest that was paid. 

Keep in mind that the maximum limit of Rs. 1,50,000 includes the registration fees and the plot title transfer fees as long as they are paid in the year that the construction is finished. 

Plot Loan Tax Benefit Under Section 24

You can also receive tax advantages on the loan's interest portion once construction is finished and you start residing in your newly built home. 

You can avail Rs. 2,00,000 annually from the loan's interest component, but only if you change your plot loan into a regular home loan that permits this deduction. 

When the building is finished, you can convert the plot loan into a home loan by giving your lender the certificates of completion and occupancy.

What You Need To Know When Applying For A Plot Loan

Every bank and lender verifies your details and does a thorough background check before approving your plot loan application. 

As a borrower, you must keep the following things in mind to ensure a hassle-free lot loan application process. 

• Make sure to look into all of the plot loan options that banks and other financial institutions are offering and select one that suits your financial situation.
• Check out the offered plot loan interest rates on the online banking platforms of various banks. You can better manage your finances by seeking a plot loan with the lowest interest rate.
• To save yourself the trouble of having to submit your loan application again, make sure you include all necessary documentation the first time.
• With a strong credit history, your chosen bank will be more willing to work with you to lower the interest rate on your plot loan because they will see that you are an accountable borrower.
• Lastly, don't forget to review the bank's eligibility requirements for plot loans before approaching the bank. This prevents your loan application from being denied.

Conclusion

Plot loans offer a respite in terms of finances and allow borrowers to buy their preferred property to construct their dream homes. As a borrower, go through several banks, their features, interest rates, and eligibility criteria to choose a plot loan that best suits your needs and finances. 

If you are looking for instant loans to buy a plot, then visit the moneyview website or download the loans app to quickly avail of a loan up to Rs. 5 lakhs in under 24 hours!