Like a home loan, you can also take a loan to buy land. Land can be easily purchased through a land purchase loan. Because in this you pay money in installments. However, like other loans, interest has to be paid on this as well.

How much interest will have to be paid?

Taking a land purchase loan can be a little more expensive than a home loan. There are many similarities between both home loans and land purchase loans. However, you may have to pay more interest on taking a loan to buy land. According to the information received about this, on taking a land purchase loan, you have to pay interest ranging from 8.6 percent to 17 percent annually.

At the same time, the tenure in this is less than that of a home loan. Land purchase loan has tenure ranging from 5 years to 20 years.

Eligibility for land purchase loan

Eligibility for a land purchase loan is the same as a home loan. If you are taking a loan to buy land, then the age should be 21 years. At the same time, the maximum age should not be more than 65 years. Along with this, some documents are also required to take a land purchase loan.

The applicant should have a fixed salary or they should be self-employed.

Along with this, the salary of the applicant should not be less than Rs 10,000. However, different rules have also been kept regarding this.

On the other hand, if you are self-employed, then you earn Rs 2 lakh annually.

Apart from this, your credit score should also be good to take any loan.

These documents will be required.

For identity proof, you can use an Aadhaar card, identity card or PAN card, etc.

For address proof, a ration card, electricity or water bill, lease agreement etc. can be used.

Along with this, bank statement of last 6 months will also have to be given for income proof.

For self-employed, latest IT assessment will have to be given.

Apart from this, your land tax receipt, title deed and other documents demanded by the bank will also have to be submitted.

What is a land purchase loan?