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POSTED BY ON May 13, 2014 12:56 pm ONE COMMENT
Hi Manish,
I am looking for some info on purchasing a plot. I have narrowed down a empty plot with is in gram panchayat limits (outside municipal and corporation). Plot is marked residential property and after buying i want to convert portion of the land to commercial and install some factory machinery which i hold the license for. Current the cost of the land is valued at 45L.
I got no objection for setting up non polluting small scale industry from neighborhood as there hardly few houses there.
Now questions.
a) Which banks will help me with the loan the the property alone.
b) How much can i expect from the banks to lend me money and for what tenure.
c) With current situation i can pay 10% from my pocket.
d) Is it possible to convert portion of the land to commercial once bank loan is active.
e) Are there any gotcha’s i should be aware during this exercise.
Note: i’m not looking for loan under housing finance schemes.
Thanks,
Anil
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ICICI bank said no-no to land in gram panchayat limits.
Axis Bank is willing for the loan in gram panchayat limits, But they have the constraints.
a) Land size cannot exceed 20 cents (8712 sqft). I’m looking for 60 cents land.
b) splitting the land by two will help but cannot exceed 20 cents x2.
c) cannot convert portion of the land into commercial.
d) only non commercial portion of the land will be eligible for loan.
LICHFL is not a choice. All loan schemes come under Housing schemes.
SBI said no-no if the land is for non residential purpose.
KSFC (Karnataka State Financial Corporation) said, loan can be provided only against the building and Machinery.
UBI (Union Bank of India), Loan can be provided for small enterprise business but not for land alone.