Plot Loan
Secure your preferred land before prices rise. Get up to 75% of plot value as a loan from top Indian banks at rates from 8.75% p.a.
Plot Loan vs Home Loan — Key Differences
| Feature | Plot Loan | Home Loan |
|---|---|---|
| Purpose | Land purchase only | Property purchase / construction |
| LTV | Up to 70–75% | Up to 90% (< ₹30L) |
| Interest Rate | 0.25–1% higher than HL | 8.50%+ p.a. |
| Max Tenure | 15 years | 30 years |
| Tax Benefits | Only after construction | Available from year 1 |
| Land Type | Residential NA plots only | Any approved property |
Banks Will Accept
Banks Will Not Accept
Plot Loan Planning Tools
Frequently Asked Questions
What is a plot loan and how is it different from a home loan?
A plot loan (also called a land loan) is a secured loan specifically for purchasing a residential plot. Unlike a home loan, you cannot use it for agricultural land or commercial plots. The key differences are: plot loans have lower LTV (70–75% vs 90% for home loans), higher interest rates, shorter tenure (15 vs 30 years), and no tax benefits under Section 80C until you begin construction.
Can I get a plot loan for agricultural land?
No. Plot loans from banks and NBFCs are only available for residential plots (NA/non-agricultural or converted land). Agricultural land purchases must be self-funded or financed through state government agricultural schemes. Banks require that the plot be approved for residential use by the local authority.
What is the maximum LTV for a plot loan?
Most banks offer up to 70–75% of the plot's registered value or market value, whichever is lower. This means you need to bring a down payment of at least 25–30% of the plot cost. The LTV may be lower for plots in non-urban areas or those without proper layout approval.
Is there a time limit to start construction after getting a plot loan?
Most banks require you to begin construction within 2–3 years of taking the plot loan. Failure to do so may result in the loan being reclassified as a personal loan (at a higher rate) or recalled entirely. However, this condition varies by lender — confirm with your bank before applying.
Can I get tax benefits on a plot loan?
There are limited tax benefits on a pure plot loan. Principal repayment deductions under Section 80C and interest deductions under Section 24(b) are available only after construction is completed on the plot. Until then, no deduction is available on the plot loan interest paid.
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