Buying a plot of land to build a dream house according to custom-made plan is an aspiration almost all of us have. Despite the hassles, some intrepid persons indeed go ahead to buy a lot of land and then assign an architect to design a house according to one’s dreams.
Any such exercise necessarily has to begin by buying a suitable plot of land. Some banks extend loans to those seeking financial assistance to buy a plot of land. Let’s see what State Bank of India, the biggest lender in India, is offering them.
Maximum loan, repayment period
According to the rules, SBI accommodates customers with loans to buy land. However, it carries a precondition that the house has to be built within 3 years of the sanctioning of the loan. The maximum amount that is sanctioned as a loan to buy a plot of land is Rs 15 crore.
The amount that one is entitled to obviously depends on the income of the applicant, the repayment capacity and the credit score of the person. A maximum repayment window of 10 years is offered by the bank.
One has to be a resident Indian to get loans to buy plots. Loans are not given to anyone below 18 years and above 65 years. Most important, a customer who has taken a loan to buy land can also take another loan to build the house on the plot.
SBI says there are no hidden charges accompanying its loans for plots. There is also no penalty for pre-payment charges. The interest is calculated on a daily reducing balance. Significantly, women borrowers are offered concessional interest rates.
Documents needed
An applicant would need several documents for these loans. These are application in prescribed format, employer identity card, 3 passport-size photos, photocopy of passport/voters ID card/ driving licence/PAN card, residence proof (recent telephone bills/electricity bill/property tax receipt/ passport/voters ID etc), bank account statement for 6 months, signature identification by bankers. The guarantor, too, would need to furnish some documents.
Though it involves some hassle, the pleasure of owning a house is difficult to be matched by an apartment. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
