We all want to live in a place that we like to call our own. But to build that dream home we need a land to build it. It may happen that we do not have finance to buy that land. You don’t need to worry on that we can always take a loan for it. Most of the banks do offer loans on plots. It can be an easy buy regardless of the terms and conditions which needs to be done before proceeding with it.
The first thing that you need to remember is never to buy an agricultural land. The land that you plan to purchase should only be used for residential purpose. Banks do not provide loan for purchasing agricultural land. Some banks even check if the land is in the municipal limits. There can be some clauses also that need to be followed. There can a lot of restrictive clauses too; so be careful to read all the documents. Let us check the difference between a home loan and a land loan. A land loan is completely different from a home loan. There are a lot of factors that we need to take a note of like tax deductions. As we have in home loans, the tax on interest is paid on land loan is not deductible, which means there is more burden on the land purchaser. The high interest rates than home loans are also an added burden. So, taking a loan for purchasing a land can be a huge hole in your pocket. If you take a loan for the construction on the site, you are eligible for tax break. Tax benefits can be claimed on both the house for construction and land loan. The tax can be deducted only in the year when the construction is completed and after the submission of the completion certification from the concerned authorities. Down payment can be an issue for the people who have taken a loan on land. Only 20% of the value needs to be arranged by the people who take home loan but, in case of land loans it may go upto 70%. For documentation and other legal verifications it is advisable to hire a lawyer who will help you to complete all the legal formalities so that you submit correct documents. If your documents are inappropriate it may lead to rejections and doing all the formalities all over again can be a tedious task. Here are some documents that you may require for getting a loan are original site ownership documents, tax receipts for taxes paid by the owner, layout drawings, receipts of the revenue, no objection certificates from the society for sale and transfer of land and a no encumbrance certificate for the land. Financing a piece of land in India is not a big issue, but the problem can be of the high interest rates. If you have the capacity and the capability of paying that you can do that too. Getting a home loan is much easier than getting a loan for the land. For a land loan you need a lot of paper work and a lot of patience. You should all meet the terms and conditions laid down by the bank. Come and meet Sairung Developers for some exclusive plots in and around Pune. We will help you with all the formalities required for a loan on the plots.
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AuthorSairung Developers, backed firmly by a sound financial base and trust, started its activities in 1979. Since its inception, the Sairung Group has spearheaded revolution in many areas like construction, development of gated communities and assured deliveries of developed farm and bungalow plots, NA plots, ensuring high returns year after year. Archives
December 2016
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