Complete Features of land loan. Dear Friends here we are providing complete details for Land Loan. Loan for Land Purchase, In this article you can find all details like – Eligibility of land loan, Conditions to be fulfilled before applying of land0-loan, Documents required for land loan, Tax Benefits of land etc. Now check more details for “complete featured of land loan” from below…
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Complete Features of land loan
1.All Indian citizens of above 21 years are eligible for getting a land loan from banks and non banking financial institutions.
2.Some financial institutions and banks offer Land loans to non resident Indians also bit the terms and conditions are some more complex than that of to Indians.
3. Both salaried and self employed individuals can get land loan.
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Conditions to be fulfilled before applying :
One should make sure that the plot of land that you are seeking to purchase using the land loan amount is a residential plot and not an agricultural or commercial land and comes within the corporation / municipality limits.
Maximum amount of loan that can be sanctioned :
1.In urban areas maximum 70% of total value of the plot of land you are going to buy can be sanctioned as land loan.
2.For small cities and all it is only 50% i.e., one has to procure the balance amount from another source and can further proceed to loan application.
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Tax benefits :
Land loan is not eligible for deduction from income while calculating the taxable income. It is not a traditional home loan.But if you start construction of home in the plot of land you bought through the loan then it can be used to get deduction like home loan that too in the year of completion of construction.
Documents required :
1. Proof of identity
2. Proof of address
3. Salary statements in case of salaried employees and bank statements of last 6 months or 1 year depends on the banker’s order.
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4. All site ownership documents in the name of your seller, to the concerned bank or NBFC. This includes no encumbrance certificate, possession certificate, location certificate and back documents of last 15 years.