Under this category of home loan, a customer can get money for purchasing a residential land. The plot to be purchased should legally and technically be acceptable for the purpose of creating mortgage. For purchasing a plot through home loan, the following conditions should be full filled:
• The plots developed only for residential purposes are eligible for availing of loan.
• The plots that are to be financed must be authorised by municipal or government development authorities and should not be located in the defined negative areas.
• The plot should be developed by approved builders or Statutory Housing Development bodies, such as HUDA or DDA under approved projects. If the plot does not fall under an approved project like in case of resale, then the plot is required to be·located in a defined residential area with in the city limits.
• The loan is not extended for plots to be used as agricultural land.
• One of the key conditions put forth by the banks for giving Plot purchase loans is lower exposure on the value, most of the banks restrict it to 60 to 80 per cent of the registered value.