Land Loan In Tamil Nadu

 Land Loan In Tamilnadu it may happen that you are entitled for a home loan, but not for a land purchase loan. Normally, Home loans are available only for the property which are so far constructed or for the property under construction or for the possession likely to undergo construction in near future. Hence, to finance the purchase of a plot, one will have to go for a land purchase loan rather.

 

The cost of take will totally depend on the type of property and position of the property you’re buying. Generally, the land loans have short tenure period as compare to other loans inclusive of Home Loan. The tenure generally varies from two to five years. But you can change the short tenancy of your loan into a longer tenure by starting construction on your land within the tenancy period of the land purchase loan. This generally happens in the case of construction of a domestic home BankVallet

Loan to value ratio (LTV)

Many backer may not be ready to lend only for the land purchase as they find this as a risky work, but most of the lenders are ready to lend you when you’ve got plans to build on your possession. Holding a raw piece of land is conjectural. Lending money for construction can also be dangerous.

land loan different from home loan

If you go for a construction loan it is feasible that you can get a loan both for the purchase of land and construction of home both in a one loan. By doing this you are adding value to your belongings as after construction your property will be much costlier than the plot. The lenders who were not ready to lend you formerly only for land will now lend you without any hassle. Another edge to going for it together is that you have to do less paperwork and other service which you had to do twice.

In order to get your Construction loan accept along with the money of land purchase, you need to show your construction plan to the banker. This will help the lenders to rely on you and your borrowing will be effortless. The money will be given to you as the construction steps profit.