A plot and home construction loan can help finance the
building of your dream home just the way you wanted it.
Many people dream of having their own villa
or bungalow. In their imagination, the house is big and airy, with large rooms
and spaces that provide a comfortable living experience. There is a shaded
garden or backyard, a separate car parking space and a dear little walkway
leading from the road to the house.
This dream can become a reality for those who
show the foresight to purchase a plot of land anywhere in the country. The plot
of land can hold their dream house, which can be built as per their aesthetic
preference. However, buying the plot is not easy – the buyer may not have the
necessary finances on hand to buy both the land and then to construct a house
on it. When this happens, it is time to take a land purchase loan.
What
is a land purchase loan?
It is a loan product that helps potential
home builders finance the construction of their dream home on their own plot of
land. It facilitates the purchase of non-agricultural land for the purpose of
building a house on it.
The best housing finance companies in India offer land purchase
loans at competent rates of interest and with a host of benefits to boot. The
loan helps the home buyer buy the land of his choice, basis a thorough vetting
by the financial institution. The land is checked for municipal and Government
permissions, market value, byelaws, and buyer’s income profile, among other
factors.
Further to the land purchase loan, the
financial institution can also offer a home construction loan that helps the
borrower build their dream house from start to finish.
The plot and home construction loan is
disbursed in periodic phases, over the construction cycle of the house.
Are
there any benefits of taking this loan?
The best housing finance companies in India
offer land purchase loan and home construction loans at competent rates
of interest. The loan product is quite affordable and the application process
is quite simple. Once the applicant and the land/ready plot is evaluated, the
approval is granted quite quickly. The applicant can also check their
eligibility before applying for the loan, on the financial institution’s
website.
The loan tenure is up to a period of 30 years if the applicant is a salaried individual, and 20 years for self-employed individuals. Besides, there are no pre-payment charges if the applicant takes a floating rate of interest.