Plot loans more expensive than home loans
Normally, plot loans are more restrictive and available only to non-agricultural plots bought from statutory authorities or approved developers.
Is it possible to get a loan to buy a land “from” my father?Normally, plot loans are more restrictive and available only to non-agricultural plots bought from statutory authorities or approved developers. Plot loans are also more expensive than home loans and are available for shorter tenure. So chances of such a loan are slim when it is not being bought from statutory authorities or approved developer.Even if the lender agrees, the value of the sale transaction between the two of you will be subject to special scrutiny as your lender may not be comfortable giving you the loan, since the transaction in question will be between close relatives and the lender may construe this as non-genuine transaction to raise money. You need to take your banker into confidence.
Harsh Roongta is CEO, Apna Paisa, a price & features comparison engine for loans, insurance and investments. He can be reached at hrdna@apnapaisa.com.