Documents Required to Get a Land Loan

It is traditional to take the help of a bank loan when investing in property – whether the said property is in the form of a villa, apartment or a residential plot. Many people prefer to invest in residential plots in the suburbs when prices are very decent, and build their dream home when they are well and ready for having a home of their own.

This is an excellent way to go in the long run, and is ideal for those who prefer to enjoy all the benefits of gated community living, but in a villa home that’s designed according to their own wishes.

When applying for a plot loan, or more aptly, a land loan, the application procedure is similar to that for home loans. However, it needs to be pointed out that land loans are usually smaller, and also come with attractive interest rates that can be repaid back in the form of affordable EMIs over a maximum period of 25 years.

Benefits of Land Loan

Land loans have minimal documentation requirements and low processing fees. They come at competitive interest rates, and it’s always better to shop around for a bank loan that offers the lowest rates and affordable repayment schedules. The best benefit of land loans however is that you can also avail of tax breaks under Sections 80C and 24 of the Income Tax Act. However, do note these benefits can only be availed when you build a house on it. Under Section 80C, you can avail deductions of up to Rs.1.50 lakhs/annum on the principle repaid. Likewise, you can avail tax benefits of Rs.2 lakhs under Section 24; but this can only be possible when you convert your land loan into a home loan.

Loan Application

For the land loan application to be processed, the applicant should be between 18-65 years of age and provide a list of basic documents which need to be verified first. For unsecured loans such as personal loans, salary slip or income proof are the most important documents. And for secured loans such as loans against property, it’s the property documents that are of greater importance.

Documents Needed for Land Loans

Below is a list of documents necessary for the land loan application process:

For salaried applicants

1. A duly filled application form with photograph
2. Proof of age – Can be passport, PAN card or any other certificate from statutory authority
3. Proof of Identity – Can be Aadhar card, driver’s license, voters’ card or employer’s card.
4. Proof of residence – Can be ration card, electricity bill or voter’s card.
5. The latest salary slips for past 3 months
6. The latest 6 months bank statement of salary account
7. Form 16 for the last 2 consecutive years.

For self-employed applicants

1. A duly filled application form with photograph
2. Proof of age – Can be passport, PAN card or any other certificate from statutory authority
3. Proof of Identity – Can be Aadhar card, driver’s license, voters’ card or employer’s card.
4. Proof of residence – Can be ration card, electricity bill or voter’s card
5. Proof and certificate of business existence
6. Last 3 years income tax returns (self & business)
7. Latest 12-month bank account statement (self & business)
8. Financial statement of business for last 2 years

Documents pertaining to the land will also be required:

1. Original of the land ownership document
2. Copies of the land records
3. Last 3 years tax receipts
4. Land records from office of the Sub-Registrar
5. Approved layout of the plot
6. ‘No Encumbrance’ certificate

And for those looking to buy residential plots in Trivandrum, there is an excellent residential plot project called the ‘Emerald Hills’ located in Venkode area. This is a premium gated community villa plot project by Prime Property Developers (PPD) and comes with a host of amenities and facilities.

Aside from storm drainage pipes, there is underground electricity and water connectivity in place already, along with paved inner roads with street lights. There is also a clubhouse, a futsal court and children’s play zones too. Comprising of 63 plots starting at 4.5 cents, these Emerald Hills residential plots are nestled on a gently rolling hillock and make the perfect green and serene backdrop for your dream home.

Come, see for yourself!