Important Tips to Get a Loan for Plot Purchase

  • When it comes to the realty sector, if you can turn your heads out in your locality, you will come to see scores of constructions going. The demand has further gone up with the easy availability of a home loan at a lower rate.

    Even the availability of the Pradhan Mantri Awas Yojana credit linked subsidy scheme has helped people open up to home purchase using a home loan.

    However, not all people like the taste (read home designs), offered by builders and that’s why some want to buy plots to construct a home of their choices. In the same context, even banks and non-banking finance companies (NBFCs) have come up with the loan for plot purchase.

    If you are willing to apply for a loan for plot purchase at a lower rate or if you wanted to get the lender’s approval without issues, this post will help you with relevant tips.

    You need to have a consistent CIBIL Score

    Lenders see the CIBIL Score as the first thing while processing your loan application and hence, it is worth considering to keep it higher. Anyone applying for a loan for plot purchase should need to keep the Credit Score at least at 750+ or more out of 900. Having a good Credit Score will not only help you get the loan for land purchase approved but also at a lower land loan interest rate. You can easily enhance your CIBIL Score by paying off all your current loan EMIs and credit card outstanding on time.

    Maintain a debt and income ratio

    Your loan for plot purchase will get approved easily only when you are able to maintain a good debt and income ratio. If your income is lower with a higher share of obligations, that won’t please any lender all look for subscribers who can repay loans without issues. Thus, make it a point to clear all your dues beforehand before applying for the loan for land purchase and maintain an accord between your debt and income.

    Opt for a smaller loan amount

    Did you know that applying for a smaller amount not only helps you landing a loan approval but even repay the loan in small EMIs and not feel you the loan burden? Yes, go ahead and ensure that you are opting for a smaller amount while applying for a loan for land purchase.

    Make repayment plans beforehand

    Even before you could initiate the process of applying for a loan for land purchase, you should have a proper repayment plan in place. Yes, you should care about the down payment and overall charges of the loan so that you may know how it will affect your monthly income. Accordingly, you would then also be making plans about the loan EMIs and how it may affect your finances. Thus, being aware of the repayment plans is another thing to approach a loan for land purchase application. Doing this will impart confidence and you will know what portion you need to save for the upcoming loan EMIs so that there is no default.

    The Bottom Line

    The loan for land purchase has become inexpensive with lower land loan interest rates available. All that you need to do is prove your loan eligibility to your lender keeping in mind the discussed factors and get a hassle-free loan approval. If you are ready, you can start applying for a loan for plot purchase online.