What Is a Land Purchase or Plot Loan?
A Land Purchase Loan (also known as a Plot Loan) is a type of secured loan offered to individuals looking to buy residential land within municipal or development authority limits. It helps you invest in a plot today and build your home tomorrow – on your own terms.
Where Can You Use a Plot Loan?
To buy a residential plot in an urban or semi-urban area
Purchase of land from government-approved layouts
Investment in land for future construction
For first-time homeowners who want to custom-build
Note: Agricultural or industrial land purchases are usually not covered.
Key Features of Plot Loan
💰 Loan Amount: ₹2 lakhs to ₹1 crore+
📉 Interest Rate: Starting from 8.5% p.a. (may vary)
📆 Tenure: Up to 15 years
🔒 Collateral: Mortgage of the land purchased
⚠️ Construction timeline clause (within 2–5 years in some cases)
📱 Application process: 100% digital with Vizzve
Eligibility Criteria
Age: 21–65 years
Indian resident (salaried/self-employed)
Stable monthly income
CIBIL Score: 700+
Land must be within corporation/municipal limit
Must not be for agricultural/commercial use
Documents Required
PAN Card & Aadhaar
Sale agreement of the plot
Encumbrance Certificate & Khata extract
Income proof: Salary slips/ITR
Latest bank statements (6 months)
Property documents and NOCs from the developer
Approved land layout (by local authorities)
Benefits of a Plot Loan
🧱 Build your dream home at your own pace
🔐 Secures high-potential land assets early
💹 Ideal for long-term investments in real estate
💰 Affordable EMIs with Vizzve’s flexible options
📈 Increases credit portfolio with secured asset
Things to Watch Before Applying
Construction clause: Some lenders require you to start construction within 2–5 years
Only residential plots within municipal limits are financed
You may not get 100% funding – usually 70%–80% of plot value
Why Choose Vizzve for Your Plot Loan?
⚡ Fast approval & minimal paperwork
💬 Free property legal check
🏦 Funding up to ₹1 crore
🔁 Flexible EMI and tenure plans
📍 Coverage across India’s top cities and towns
📲 End-to-end digital loan journey
Vizzve Tip
Want to buy land now and construct later? Combine a Plot + Construction Loan with Vizzve and enjoy better terms and longer tenure.
FAQs
Q1. Can I take a personal loan for land purchase?
No. Personal loans can't be used for buying land, especially when you need property registration.
Q2. Can NRIs apply for plot loans?
Only a few lenders support this. Vizzve currently supports resident Indians only.
Q3. Is down payment required?
Yes, you’ll need to pay 20–30% of the plot value as margin.
Q4. What if I don’t start construction within 2 years?
Some banks may increase the interest rate or restructure the loan. Check terms carefully.
Published on : 23rd July
Published by : SMITA
www.vizzve.com || www.vizzveservices.com
Follow us on social media: Facebook || Linkedin || Instagram
🛡 Powered by Vizzve Financial
RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed