Securing Plot Loans  

Summary: A plot loan is a type of loan specifically designed to help people purchase land. To secure a plot loan, you must fulfil eligibility criteria, provide required documents, calculate EMI, and follow some easy tips, as discussed in this post.

People purchase land to buy a house, office, or factory. Considering this a massive financial investment, it often requires additional funds. This is where a plot loan comes into play.

A plot loan is a type of loan offered by lending institutions to help people purchase a piece of land in order to build a house or a commercial establishment. Additionally, it can also help you take a home loan. 

If you are planning to take a plot loan, here is a guide to help you.

Understanding Plot Loans

Before we dive into the details of securing a plot loan, it is essential to understand what a plot loan is. 

A plot loan is a type of loan that is specifically designed to help people purchase a plot of land. Unlike a home loan, a plot loan does not cover the cost of construction. It only covers the cost of purchasing the land.

Eligibility Criteria for Plot Loans

The eligibility criteria for a plot loan can differ among lenders. Nevertheless, typical factors include age, income, credit score, and loan purpose.

To qualify for a plot loan, you must be between 21 and 60 years old. Your income should be stable and adequate to cover the loan repayments. A good credit score and a spotless credit history are also essential requirements.

Moreover, the lender might assess the purpose of the loan before granting approval.

Required Documents for Plot Loans

To apply for a plot loan, you will need to provide several documents, including identity proof, address proof, income proof, and property documents.

·  The identity proof can be a passport, driving license, or voter ID card. 

· The address proof can be a utility bill, bank statement, or rent agreement. 

· The income proof can be your salary slip or income tax returns. 

· The property documents include the sale deed, title deed, and land tax receipts.

Calculating EMI for Plot Loans

Before applying for a plot loan, knowing how much EMI you will have to pay is essential. You can make use of a home loan EMI calculator online to calculate your EMI. 

All you have to do is enter the loan amount, interest rate, and loan tenure. The calculator will provide you with the EMI amount, the interest payable, and the total amount payable.

Tips to Secure a Plot Loan

To secure a plot loan, here are a few tips you can follow. 

· You should have a good credit score and a clean credit history.

·  You should also have a stable income and a repayment capacity.

· You should compare the interest rates and processing fees offered by different lenders; this will help you find the best deal. 

· You should have all the required documents ready before applying for the loan; this will help you avoid any delays or rejections. 

· Negotiate with the lender to get the best deal possible.


Getting a plot loan can appear intimidating, but it is achievable. By adhering to the advice outlined in this guide, you can enhance your likelihood of securing a plot loan.

It is crucial to compare interest rates and processing fees, gather all necessary documentation, and bargain with the lender for the most favourable terms. Before applying for the loan, use an online home loan EMI calculator to determine your EMI.

Consider applying to reputable financial institutions such as PNB Housing for a smooth and secure process. Don’t forget to keep these tips in mind to increase your chances of getting a plot loan.

By wowmagzine

"Wowmagzine" Keep You ahead in the fast running world of information. We offer quality content that our readers like to read.