What type of plots are eligible for a plot loan?⌄
Only residential plots in government-notified and authority-approved layouts: HMDA (Hyderabad), DTCP (Andhra/Telangana), RERA-registered projects, BDA (Bangalore), CIDCO (Maharashtra), etc. Agricultural land, open farmland, and unapproved layouts are not eligible.
Can I get a plot loan without construction plan?⌄
Yes — for plots in approved layouts, a construction plan is not required at the time of plot purchase. However, most lenders expect construction to begin within 3 years. If you want tax benefits, a composite loan (plot + construction) is recommended.
What is a composite plot + construction loan?⌄
A single loan facility covering both the plot purchase and subsequent construction. Plot purchase amount is disbursed first, construction amount is disbursed in stages. Full home loan tax benefits (24b interest + 80C principal) apply once construction EMI starts.
Is there a tax benefit on a pure plot purchase loan?⌄
No. Interest paid on a standalone plot purchase loan does not qualify for income tax deduction under section 24(b). Tax benefits kick in only after construction begins as part of a home loan or composite loan.
What LTV (Loan-to-Value) is available for plot loans?⌄
Typically 70–75% of the plot's registered value or market value (whichever is lower). Some premium locations or lenders may offer up to 80%. You need to bring in 20–30% as your own contribution (down payment + registration charges).
Can I buy a plot in a gated community?⌄
Yes, if the developer/layout has RERA registration or appropriate layout approval. Gated community plots with clear title from reputed developers are actually preferred by lenders — cleaner documentation, better valuation.
How is plot loan different from home loan?⌄
Home Loan: For purchasing/constructing a residential property. Lower rate, 30-year tenure, full tax benefits, PMAY eligible. Plot Loan: For purchasing land only. Slightly higher rate, 15-year max tenure, limited tax benefit, no PMAY.