Plot Loan

A plot loan is a type of home loan that allows you to finance the loan for the residential plot. This is the land on which you will be able to build a dream home later. Plots can be purchased by direct allotment in real estate housing societies/projects or directly from development authorities.

Most financial institutions, including PNB Housing, will finance in the range of  70-75% of the plot’s market value price.. Interest rates of land purchase loans are slightly higher (usually 1% higher ) than typical house loans, and tenor range from (10 to 15 years). 

You also stand to receive home loan tax benefits if you commence construction on the purchased land. However, the tax benefits do not apply to EMI repayments on plot loans.

Features of PNB Housing Plot Loan

PNB Housing offers loans for the acquisition of urban residential plots. You are liable to get the following benefits on a land purchase loan:

• Branches across India
• Quick and easy loans with doorstep services 
• Various options for repayment
• Attractive interest rates
• Lengthy tenor period
• Government applicable interest subsidy
• Online post-payment services
• Possible increase in loan amount with tenor extension

 Buy Plot Purchase Loan from PNB Housing

With PNB Housing, you get to transform a plot into the house of your dreams with our lucrative and affordable residential plot loan options. So, how can you avail of it? Let’s look at the various requirements.

1. Documents Required for Plot Loan

The documents required for PNB Housing plot loans are: 

• Duly filled Application Form
• Age Proof (PAN Card, Passport, Any other Certificate from Statutory Authority)
• Residence Proof (Passport, Driving License, Telephone Bill, Ration Card, Election Card, Any other Certificate from Statutory Authority)
• Education Qualifications – Latest Degree
• Latest Salary-slips for 3 months , Certificate & Proof of business existence along with Business Profile for self-employed professionals
• Form 16 for last 2 years for salaried individuals, Last 3 years Income Tax returns (self and business) with Profit & Loss Account & Balance Sheets duly certified/audited by a Chartered Accountant for self-employed professionals
• Last 6 months Bank Statements(salary account) for Salaried, Last 12 months Bank Account Statements (self & business) for self-employed professionals
• Processing Fee Cheque in favour of ‘PNB Housing Finance Ltd.’ 
• Photocopy of Title Documents of the Property, Approved Plan

Whether self-employed or salaried, you can apply for a plot loan and get the detailed list of documents for a plot loan here.

2. Eligibility Factors for Plot Loan

Factors that determine plot loan eligibility include:

• Profession: The borrower should be a salaried individual or a business owner.
• Credit Score: A borrower’s credit score should be at least 750 to qualify for attractive interest rates. The interest rates increase as the credit score reduces.
• Age: Borrowers should not be older than 70 years of age at the time of loan maturity.
• Loan Tenor: The length of a loan term determines the amount of loan eligibility.
• Property Cost: The cost of the property will determine the loan, as per PNB Housing’s LTV policies.

You can calculate your tentative loan eligibility with the help of our instant loan eligibility calculator. 

3. Plot Loan Rate of Interest

The rate of interest for plot loans at PNB Housing starts at 8.50% p.a. The interest rates are floating rates which change with movement of the base rate during the loan tenor. Plot loans with fixed rate options are now rarely available in the market.

Plot Purchase Loan Process

PNB Housing has made availing a plot loan truly accessible for both self-employed and salaried professionals. The loan application process is:

• Visit the official PNB Housing Finance website
• Click on the “Home Loan” category
• Press the “apply for plot purchase loan” option at the webpage’s bottom

FAQs

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