Whether you are an experienced homebuyer or a first-timer, a home loan is one of the most significant things you should know about before making a purchase. While some people prefer to purchase an already constructed apartment or house, others prefer to purchase a residential plot of land, either to build a home or for investment purposes. This is when you’ll need to decide whether you have to apply for a plot loan or a home loan. Do you know the difference between
plot loan vs home loan? Read below to find out:
Difference Between Plot Loan and Home LoanOne basic difference between both a home loan and a plot loan is that one can use a home loan to purchase an under-construction or already constructed residential property. One can use a plot loan to purchase a plot of land that has been earmarked for the construction of a residential property.
Home Loan Vs Plot Loan: Key Differences| Loan type | Land Loan | Home Loan |
| Purpose | To buy a plot of land only for residential purposes. |
To buy constructed or under construction property. |
| Who is eligible | Only Resident Indians |
Resident Indians as well as NRIs |
| Maximum Loan | Around 75 percent of the value of the land |
Around 90 percent of the value of the property |
| Tenure | Up to fifteen years |
Up to thirty years |
| Interest rate | 0.5% to 1% above housing loan |
Lowest among retail loans |
| Tax benefit Applicable | Only to cover construction cost. |
For both principal and interest payments. |
Check Out NoBroker’s Home Loan Services if You’re Planning to Buy an Already Constructed House or Apartment
I have recently applied for a home loan through NoBroker. If you are also looking to get a home loan through their platform, then check your eligibility using this calculator:
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Read more:
Can you convert personal loan to home loan?
Is home loan processing fee refundable?
What is home loan process?
I hope now you know about the difference between
plot loan vs home loan.
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What is the difference between plot loan and home loan?
Lakhan
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2 Year
2022-05-04T18:25:06+00:00 2022-05-04T18:44:26+00:00Comment
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