How To Get Mortgage Loan Against Vacant Land

A lot of Indians are landowners either through inheritance or purchase during the initial phase of their career. Plots and lands are considered to be good investment alternative by most people. Also, one is usually as attached to a plot of land as they are to their home. Apart from this, these assets can also be a great way of generating funds in case of an emergency. The Loan Against Property Interest Rates are quite low, thus gives the best option of taking this loan.

A loan against plot is as easy to get as in case of any other property. Most financing agencies are willing to make the transaction happen on the basis of vacant land as well.

However, there are a few terms and conditions which the plot needs to meet. So that, you can quickly get, a loan against property for plot. In this article, I will share with you every relevant detail about a similar financing service.

How does it work?

A loan against plot application process is similar to any other financing service. It starts by finding out about all the lenders who are willing to offer funds to you against your vacant land. However, this can be a little more daunting then you might think.

Many lenders hesitate in providing a loan against plot because they usually feel that the vacant land is not considered to be of great importance to the borrower. It happens, in case, you show a lack of interest in extending the value of the plot.

But if you are willing to construct on your vacant land, then there are chances of you being able to acquire up to 95% of the value of the plot in the form of a loan. Apart from this, you even become eligible to get benefits related to the construction of a new house.

What does it Require?

Any loan against plot whether big or small requires a certain amount of paperwork to be done. It is only possible when a borrower submits all the valid loan against property documents required. Although, different financing firms might have different terms of requirements that you would have to follow. But below are some of the common ones that you should always keep in mind.

• > Establish a valid proof of identity and permanent residence

• > Provide your bank statement of at least six months

• > If you are a salaried employee, then make sure to show your income slip

• > Business owners can use their balance sheet to prove their income

• > Income tax return statement for at least two years

• > Valid document of your property even if it is for a loan against plot

What are the Benchmarks?

Since a loan against plot is considered a little tricky by lenders, it is essential to pass on their set benchmarks. These benchmarks prove that your loan against property eligibility standard is up to the mark. Also, they assure the financing firm that you will make full efforts to pay back your loan against plot.

• > The plot should be legally on your name and without any encumbrances. It means that it should not be in any dispute whatsoever for you to get a loan against plot.

• > The second benchmark is that the worth of the plot should support the loan amount which you are applying. In simple words, the amount should be lower than the value of the property.

• In case you are taking a loan against plot with a commercial or industrial land, then all your business partners should be in sync with the transaction.

Alisha Antil is your best financial helper for insurance. She has a vast experience in finance and loans and provides you the expert advice in ensuring your property and health.