Home Loan and Land Loan: If you are planning to buy property, then first know what is the difference between home loan and land loan.

Home Loan and Land Loan

If you are planning to buy a property, then remember that home loan and land loan are different from home loans. It is very important to know about the difference between these two.

Difference between Home Loan and Land Loan: Let me tell you that some people take land and build houses, while some have ready flats or buy houses, then if you also have such a plan in your mind and you want to take a loan, then decide it. Whether you want to take a loan to buy a house or are thinking of taking land to build a house. You should keep in mind that home loan and land loan are completely different. It is very important to know about the difference between these two.

1.Every person living in India can take a home loan or land loan at all.

2.NRIs can get a home loan very easily but they cannot get a land loan.

3.People taking a land loan will be able to take it only for residents residing in India.

What is a tax deduction claim?

1.A tax deduction is claimed under section 80C of the Income Tax Department Act on repayment of home loan principal and under section 24B on repayment of interest

2.There is no such tax benefit available on land loan.

What type of property can I get?

1.Your home loan lending rules are flexible.

2.A land loan is available only for certain types of land.

3.The lender usually prefers to fund the lands allotted by the development authorities.

What is the use status of the land?

1.The status of use of the land matters in getting the land loan.

2.Prefers to give loan to the lender for residential land.

3.Agricultural or business people do not get land loans to buy land.

4.Some such special loans can be used for the purchase of agricultural land, but you do not get these loans easily.

5.These loans are only for specific borrowers like marginal farmers or landless labourers.

6.If you are thinking of taking a home loan for property outside the municipal area, then it can be taken.

6.Land loan is generally not available on land situated in the village or industrial area.

7. It should be located within the corporation or municipal limits and should also have a clear demarcation of the land.

What is the maximum land loan that can be taken or availed?

1.Let you know, in case of a home loan, up to 90% of the value of the entire property can be given or availed.

2.The loan amount for a land loan is very little. Loans can be availed up to around 70%-75% of the cost of the property where the funding is required to buy only the land

3.If the loan applicant buys land and gets a construction loan, then there is a chance of getting more loan.

4.It would be better if the applicant arranges at least 30% or more to make the downpayment.

what could be the interest rate

1.The interest rate on a home loan is very low.

2.You get the land loan at a higher rate.

3.If we compare the interest rate on the land loan and home loan, it is 50%-1% higher.

How long can we repay the loan?

1.In the case of home loans, the tenure to repay the loan can go up to around 30 years.

2.The maximum tenure to repay the loan in a land loan can be around 15 years.