Land Purchase Loan In India
In order to undergo the land procurement policies, there are several schemes and procedures that are laid down by the Indian Government to let the common people avail. The terms and conditions associated with the land procurement policies need to be followed according to government specifications. However, it should be noted that there are several public as well private sector banks available in the market that are eager to give away loans pertaining to property purchasing. These banks offer attractive schemes and plans along with marginal interest rates to attract the customers. Let us have a look at the eligibility issues associated with property loan schemes:
A person trying to apply for a property loan should have completed twenty one years of age or more. The maximum loan amount that can be availed will mainly depend on the cost of the property. Then, the repayment capacity of the borrower will also be taken into consideration. The annual income of the applicant will be verified clearly. Loan can be taken single handedly as well through a joint account basis. However, in case of joint-account basis, the other person’s monthly as well annual income documents also is required to be submitted before the loan giving authority. The interest rates levied on loan amount depends from one agency to another. However, no agency levies extreme higher interest rates as there is a fierce competition going on in the market. There are a number of documents that are required. First and foremost criteria: you are required to collect the application form from the desired loan institute. Then duly fill up the form in the most correct manner as per instruction. After that attach a recent passport sized photograph of the applicant in the space provided in the form. This needs to be submitted to the loan institute you are approaching. However, along with this form the applicant will be required to submit some more documents. Copy of the identity proof as well the residence proof needs to be attached with the form. Necessary certificates (photocopy) that highlights the applicant’s educations qualification needs to be produced. The income statement proof for the past three years needs to be produced along with proof of income tax payment slip and Form 16. The current month salary slip is also need to be produced. A Cheque or demand draft needs to be drawn in favor of the lending authority in order to pay the processing fee.
The best and most reliable loan services available in India for land purchasing is through banks. There are several private as well government banks available within the country which offers land property loans at easy schemes and installment facilities. The Indian Bank is one such bank which offers easy property and land loan while following easy monthly installment repayment options. Have a look:
The scheme is known by the name of PLOT LOAN. It is to be kept in mind that the plot or land that will be purchased should be on an ownership basis. And it is necessary to have the land site fully approved through Government Authority.
The eligibility criteria while applying for this loan is as follows: The age should not exceed fifty years during the time of application for the loan. However, it should be kept in mid that the repayment needs to be done by the time the age limit reaches sixty years. If a person is salaried professional, then he/she should have a service experience of minimum 3 years in the same organization. Those who are self-employed or run their own business ventures need to have an experience of minimum three years. If the applicant is a pensioner, then he/she should have the proper repayment capacity, and necessary documents need to be produced in order to show the additional income resources.
The maximum loan that can be given away is a maximum of 10 lacs or 30 times of the total monthly income, whichever is less. Provision for both single as well joint loan applications can be approached also. In case of joint loan application, both the person’s monthly income slips needs to be produced. This is better to avail much higher loan amount. It is to be noted that the take home salary amount should not be less than forty percent of the gross monthly income after deduction of the installment repayment loan amount on a monthly basis.
The margin will be around thirty three percent of the land costing. There is also a processing fee which is 1.15 % of the total loan amount. The maximum number of EMIs should not be more than 120 in number which includes holiday periods also. The BPLR is calculated at a rate of 13.50 % while the base rate is 9.50 %.
Before availing the loan, the applicant needs to fulfill issues on security deposits. Equitable property that is purchased outside loan amount can be used as mortgage. This equitable mortgage of property should be registered by the applicant at his/her own cost.
Finally let us have a look at all the documents that are required to be submitted before the banking authority:
Duly filled in loan application form with proper pasting of the applicant’s recent passport sized photograph (self-attested).
An attested copy of the applicant’s identity proof preferably voter ID, driving license, PAN card, or passport.
An attested copy of the applicant’s address proof preferably current telephone bill (applicable for only BSNL customers), passport, voter id, electricity bill, etc.
Those who runs business or ventures, need to produce the address proof of the organization.
Those who are salaried professionals need to produce the proof of their employment status. They are also required to provide a copy of the last three months’ salary slip.
If the applicant has any other type of additional income source, then it should be mentioned in a clear way.
The last three years balance sheet need to be produced before the bank authority. This is applicable to the self-employed ones, businessmen, and professionals.
Income Tax returns for the previous three years.
Papers that depict the sale agreement issue.
The approval later of lay out.
Documents related to title-deeds for thirty years need to be produced.
|Legal Aspects of Land|
|Land Act of India|
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