{"id":86,"date":"2020-03-11T05:05:59","date_gmt":"2020-03-11T05:05:59","guid":{"rendered":"https:\/\/www.loanfasttrack.com\/blog\/?p=86"},"modified":"2020-03-27T16:38:42","modified_gmt":"2020-03-27T16:38:42","slug":"difference-between-home-loan-land-loan","status":"publish","type":"post","link":"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/difference-between-home-loan-land-loan\/","title":{"rendered":"Difference Between Home Loan & Land Loan"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

In\ngeneral people may refer purchasing a new home or a land as buying a new property,\nbut the loans taken for purchasing the two significantly differ with each\nother. Though\nin broad they may be referred as property loan and both may seem similar to\nmany, there exist differences between the two- home loan and land loan.<\/p>\n\n\n\n
\n SR.\n NO.\n <\/td>\n  \n <\/td>\n HOME\n LOAN\n <\/td>\n LAND\n LOAN\n <\/td><\/tr>
\n 1\n <\/td>\n Meaning\n <\/td>\n Loan\n taken to purchase residential resale or builder-under-construction or ready\n to move property or to be self constructed property.\n <\/td>\n Loan\n taken to purchase a piece of plot or land for residential purpose.\n <\/td><\/tr>
\n 2\n <\/td>\n LTV-Loan\n To Value i.e. amount of loan that you get against the property.\n <\/td>\n 90 % –\n Property Value up-to 30lakhs.\n 80% –\n Property Value up-to 75lakhs.\n 75% –\n Property Value above 75lakhs.\n <\/td>\n The maximum LTV is capped at 70% of the land\n value.\n (If the property is situated in smaller\n cities or towns, the maximum LTV ratio is 50%-60% of the total cost of the\n plot.\n <\/td><\/tr>
\n 3\n <\/td>\n Loan\n Tenure\n <\/td>\n Maximum\n up-to 30years.\n <\/td>\n Maximum\n up-to 20 years.\n <\/td><\/tr>
\n 4\n <\/td>\n Rate\n Of Interest\n <\/td>\n Relatively\n low in comparison to land loan \u2013 7.90% – 8.65%\n <\/td>\n Relatively\n high than home loan \u2013 8.50% -11.50%\n <\/td><\/tr>
\n 5\n <\/td>\n Processing\n Fees\n <\/td>\n 0.10%\n -0.30% of the home loan amount.\n <\/td>\n Upto 2%-4%\n of the land loan amount.\n <\/td><\/tr>
\n 6\n <\/td>\n Foreclosure\n Charges\n <\/td>\n Nil \u2013\n Floating Rate Of Interest.\n 2% –\n 4% – Fixed Rate Of Interest. \n <\/td>\n Nil \u2013\n for individual borrower.\n 2%\n plus applicable taxes \u2013 for non-individual borrower.\n <\/td><\/tr>
\n 7\n <\/td>\n Tax\n Benefits\n <\/td>\n Exemptions\n under section 80C for principal and section 24(b) for interest paid.\n <\/td>\n No tax\n benefits. The tax deduction is available only for the loan amount taken\n against the construction and only after completion of construction activity.\n <\/td><\/tr><\/tbody><\/table>\n\n\n\n

Land\nLoan Restriction.<\/p>\n\n\n\n

1) A land loan cannot be availed\nfor buying an agricultural land or an industrial land.<\/p>\n\n\n\n

i) The\npurchased piece of land has to be an NA land i.e. non-agricultural land.<\/p>\n\n\n\n

ii) The\npurchased piece of land has to be a non-commercial property.<\/p>\n\n\n\n

2) The\nland must be within the municipal or city limits and not in a village. A plot\nin grampanchayat is generally not considered for land loan. However there are\nfew specific NBFCs who do grampanchayat loans.<\/p>\n\n\n\n

3) The\nland needs to be used for residential purpose in future.<\/p>\n\n\n\n

4) Lender\nBanks\/NBFCS has a capping on maximum land loan amount. Banks like PNB has\ncapping of 50lakhs while Indian Bank has 1Crore.<\/p>\n\n\n\n

5) Lender\nBank\/NBFCs have preconditions towards the land loan to begin construction on\nthe acquired plot of land within a stipulated period of time. Prominent banks\nlike SBI and ICICI preconditions the construction on the plot o be completed\nwithin 2 years of land loan taken.<\/p>\n\n\n\n

Conclusion:\nIt is however seen that the availability of the plots or land is usually beyond\nthe city limits mainly covered under grampanchayat. In a metropolitan city like\nMumbai, plots for smaller investments by individual purchaser-as common man are\nrarely available. The plots so available are usually reserved and purchased by\nthe developers\/builders for constructing the residential\/commercial apartments.<\/p>\n\n\n\n

To know more on home loan in Mumbai<\/a><\/strong>, home loan rates in Mumbai and land loan visit https:\/\/www.loanfasttrack.com\/<\/a>.<\/p>\n\n\n\n

Loanfasttrack is the best online platform to choose among the best bank for home loan to secure a low cost housing loan in Mumbai, mortgage loan in Mumbai and instant personal loan in Mumbai<\/a><\/strong>.  Loanfasttrack is a specialised loan provider in Mumbai markets with its existence in the online market since 2015. It offers loan services in Mumbai \u2013 instant loan in Mumbai, loan against property in Mumbai, business loan in Mumbai, Unsecured business loans, personal loan in Mumbai, home loan, home loan balance transfer, car loan, Top-up loans & Loan transfers. <\/p>\n","protected":false},"excerpt":{"rendered":"

In general people may refer purchasing a new home or a land as buying a new property, but the loans taken for purchasing the two significantly differ with each other. Though in broad they may be referred as property loan and both may seem similar to many, there exist differences between the two- home loan …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33],"tags":[],"class_list":["post-86","post","type-post","status-publish","format-standard","hentry","category-finance"],"_links":{"self":[{"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/posts\/86","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/comments?post=86"}],"version-history":[{"count":2,"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/posts\/86\/revisions"}],"predecessor-version":[{"id":113,"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/posts\/86\/revisions\/113"}],"wp:attachment":[{"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/media?parent=86"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/categories?post=86"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/tags?post=86"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}