Land Loans And Everything That You Need To Know
Depending on the real estate prices in today’s economy, besides the size and the future prospects of the land, an additional thing that you should bear in mind while planning to purchase land, is that you should select the land loan that would be the most appropriate choice with respect to your financial life.
While applying for a land purchase loan , the borrower would need to focus on a few important aspects of the loan. They would need to discover a finance company where they can easily meet the application criterion and feel comfortable with the standard loan repayment plan. However, most importantly, you would need to research, religiously, the finance company that provides the best possible interest rate in the market. Though the processing fees are as important, the lowest interest rate will help you greatly, in the long run.
While taking a loan to purchase land, you would require a lot of land related documents. Therefore, it is best to have a very clear understanding about the list of documents that the mortgage companies ask for, since it is not a single document related to direct allotment or land resale.
Finance companies in India seek several related documents such as the documents regarding land ownership, NOC certificate for the land, the layout of the land as per the local authority, all the records and receipts related to the land and tax certificates. The list could get even more tedious if there are any issues regarding the concerned certificates and documents.
Plot loan processing tends to get considerably delayed with any issue in the certificates or any problem with the local authorities. Therefore, it is a must for any borrower to have all the documents in the required order. Though most finance companies prefer to support the borrowers, who are purchasing a land in upcoming cities like Bhubaneswar, Madurai, Hyderabad, Kochi, Gurgaon, Noida, Pune suburbs etc., it’s important to ensure that the plot is free from any legal hassles.
Community banks, corporative banks, private banks and private finance companies are deemed more understanding, supportive and flexible when it comes to the loan criterion. As long as you can assure the bank/financial institution about your repayment capacity, most private finance companies can be very lenient. The best way to ensure a good credit score is to maintain clear tax returns, healthy ratings and a stable source of income, which would be sufficient to make EMI payments regularly.
