Bank Loans for Open Plots and Flats housing loans

Lot of people purchase plots for the investment purpose  or to construction the house. But, banks will not give loans  to purchase of plots. But, banks will sanction loans to construction agreement in time bound period. Generally, banks will give loans to under construction flats or houses and ready to occupy position flats or houses.

Banks will give loans 85% of total amount for flats or houses and 70% loans for open plots with conditions.

Tax exemption will applied on the purchase of flat or house even after bank loan. But, tax exemption is valid for open plot purchase. However, it is valid after construction of house.

Lot of banks is not giving loans to NRIs to purchase open plots. Some banks providing loans with lot of formalities and high rate of interest.

Banks will provide housing loans up to 30 years loan repayment duration. If banks give loans on open plots, with short period loans only. Some private housing finance companies like deewan housing finance is providing open plot loans on 20 years period.

All banks have ceiling for open plot loans. Indian Bank providing loans up to  Rs. 1cr. Punjab National bank is providing Rs. 50.00 lakhs only.    

"Own a Property… Get Power. It means…. No Property …. No Power”