Property Loan/Home Loan for buying a piece of land

POSTED BY Prasad ON January 16, 2012 5:27 pm ONE COMMENT


1.) Can we get any kind of benefits on purchasing a loan for buying a piece of land ?
2.) Basically what is the difference b/w a property loan and an housing loan ? in termsof eligibility and conditions ?
3.) What would happen if I take a housing loan to buy a piece of land and do not construct a house within or in 2 years.

Any more details would be helplful.


One reply on this article “Property Loan/Home Loan for buying a piece of land”

  1. Dear Prasad, Here are the answers for your query –

    1. If you mean tax benefit, this ‘ll be available only if you construct a house on that plot/piece of land later on. Like an ordinary home loan. In case this is purely an investment purpose, no tax benefit ‘ll be there.

    2. For normal home loan the self funding:loan ratio remains 20:80 where as for Plot or land loan this is 40:60.

    3. If you are taking a plot + construction loan, the bank ‘ll release initially the plot amount only & no loan ‘ll be disbursed to you if no construction is there. As per it’s T & C, the bank may impose penalty also on you.



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