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HDFC Bank Land Loans
A Land loan or plot loan as the name suggests is a loan provided by banks like HDFC to borrowers for the purchase of a plot of land. This page will help you if you are seeking out land loan from HDFC bank.
HDFC Land Loan Features
HDFC Bank provides land loans to customers for the purchase of land to build your dream home for both salaried/self-employed people.
HDFC Land Loan: Key Features
- Low Interest Rates – The bank provides competitive interest rates when compared to other banks in the country
- Low Processing Fee – The processing fee too is lesser than thelesser than some lenders, check out for all the processing fee below
- No Pre-Payment Penalty –no penalty is levied for pre-payment
- No Hidden Charges – All the charges will be communicated upfront hence no hidden charges
HDFC Land Loan Maximum Loan Amount
The following table below gives the maximum amount of loan that can be availed to purcahse your loan from HDFC Bank, one of the most trusted banks in the country
| Loan Amount | Maximum Funding |
| Up to and including Rs.20 lakhs | 90% of the property cost |
| Rs.20.01 lacs to Rs.75 lakhs | 80% of the property cost |
| Above Rs.75 lakhs | 75% of the property cost |
From the above table we can say that if your loan amount requirement is more than 75 lakhs then the down payment will be more.
Advantages of Taking A Land or Plot Loan
- Land is a limited resource and is considered as affordable comparative for individuals
- Good investment option
- Buyer can design his/her on his own terms
The disadvantages include the no presence of tax benefits and lower LTV value, but these disadvantages need to be kept in mind before applying for a land loan
Different Types of Land Loans
Land Loans can be undertaken by individuals for the following reasons
- Purchasing of plot directly from a real estate development authority or housing society
- Purchasing of plot through resale directly from lender or through agents
Pre-requisites for Land Loans
- The land or plot of your choice must be purchased strictly for non-agricultural purposes
- The land should be approved by the local authorities and must have relevant documents during the time of purchase
How is Land Loan different from Home Loan?
This is a common query that is raised when discussing about land loans and plot loans, at first sight they do seem to meet the same purpose, but they are quite different as we shall see
Difference 1: A home loan is provided for a property that is built, under construction and or undergoing restoration and extension, while a land loan is predominantly given for purchase of a piece of land or plot
Difference 2: The Loan to Value ratio for a home loan is about 80%, for loans above 3 lakhs the LTV is 90%; while the LTV for a plot is 50-70%
Difference 3: The tax benefits which are available on a home loan are not available on the land and plot loans
Difference 4: Home loans tend to be longer up to 30 years even, while the land plot loans are extended up to 15 years
Difference 5: Another factor that is considered while taking up a land loan is the presence of 2-5% of foreclosure charges that are absent in a home loan. These are the primary differences between a home loan and a land loan.
Credit Score and Land Loan
For any loan applicant, a credit score is an important facet that is considered by banks and other lenders when they are about to make lending decisions for any loan including your land loan. It is the onus of the applicant to maintain a good credit health especially for those who are looking to take big ticket and medium to long term loans, the presence of a poor credit score or no credit score could lead to unwanted situations such as unfavourable terms or sometimes even rejection.
To avoid loan rejection, learn more about your credit health, start with your free credit score.
Eligibility Criteria
The following are the eligibility criteria for HDFC Bank land loans
| Age | The applicant must be between 18 and 70 years |
| Loan Tenure | The maximum loan tenure is 15 years |
| Loan Amount | The maximum loan amount is Rs.15 crores |
| Pre-Payment Charges | Nil |
| Nationality | Only Indians can apply for the HDFC land loan |
HDFC Bank Land Loan Charges
Processing Charge: Up to 1.50% of the loan amount or it is Rs. 4,500
PDC Swap: Up to Rs 200
To increase or decrease loan term: up to Rs 500
HDFC Bank Land Loan Interest Rate
For Salaried and Self-Employed Professionals
Adjustable Rate Home Loan - A Home Loan under the Adjustable Rate is linked to HDFC's Retail Prime Lending Rate (RPLR). It will be revised once every 3 months and the interest rate will increase or decrease according to the market rate. The revision will be based on the date of first disbursement of funds.
Retail Prime Lending Rate: 16.45%
| Loan Slab | Home Loan Interest Rates (% p.a.) |
| For Women (up to 30 Lakhs) | 8.50 to 9.00 |
| For Others (up to 30 Lakhs) | 8.55 to 9.05 |
| For Women (Above 30 Lakhs) | 8.60 to 9.10 |
| For Others (Above 30 Lakhs) | 8.65 to 9.15 |
TruFixed Home Loan – A TruFixed Home Loan offers you a part fixed rate term and a part adjustable rate term. Under this variant of the TruFixed Home Loan, you can avail of a fixed rate for a maximum term of 2 / 3 years, post which the loan will automatically convert to an adjustable rate, adding up to a total term of 20 years.
Retail Prime Lending Rate: 16.45%
| Loan Slab | Home Loan Interest Rates (% p.a.) |
| For Women (up to 30 Lakhs) | 8.60 to 9.10 |
| For Others (up to 30 Lakhs) | 8.65 to 9.15 |
| For Women (Above 30 Lakhs) | 8.70 to 9.20 |
| For Others (Above 30 Lakhs) | 8.75 to 9.25 |
For Self-Employed Non-Professionals
Adjustable Rate Home Loan
Retail Prime Lending Rate: 16.45%
| Loan Slab | Interest Rates (% p.a.) |
| For Women (up to 30 Lakhs) | 8.55 to 9.05 |
| For Others (up to 30 Lakhs) | 8.60 to 9.10 |
| For Women (Above 30 Lakhs) | 8.65 to 9.15 |
| For Others (Above 30 Lakhs) | 8.70 to 9.20 |
TruFixed Home Loan
Retail Prime Lending Rate: 16.45%
| Loan Slab | Interest Rates (% p.a.) |
| For Women (up to 30 Lakhs) | 8.65 to 9.15 |
| For Others (up to 30 Lakhs) | 8.70 to 9.20 |
| For Women (Above 30 Lakhs) | 8.75 to 9.25 |
| For Others (Above 30 Lakhs) | 8.80 to 9.30 |
HDFC Bank Land Loan Documents Required
| Purpose | Documents |
| Proof of both identity and residence (any 1) |
|
| Proof of income |
|
| Other documents |
|
| Property related documents |
|
HDFC Bank Land Loan Eligibility Check
Before a person applies for a HDFC Bank land loan it is best to do an eligibility check which is available on the HDFC Bank website and at CreditMantri.com This way your credit score will not be affected as the bank will only soft pull your credit score and compares with other internal criteria to make sure you are eligible.
Land Loan EMI Calculator
Customers can use the home loan EMI calculator to know how much EMI they will be paying each month. Customer can make use of the CreditMantri Home Loan EMI calculator and the lender Home Loan EMI calculator.
The importance of this is that customers will know how much EMI they will have to pay based on their loan requirement. This helps them to plan far ahead.
CreditMantri’ s Home Loan EMI Calculator and lender Home Loan Calculator are among the best and probably the easiest ways to compare various home loan offers and choose the loan best suited to your requirements. Using the Home Loan EMI Calculator, you get a simple and quick way to accurately compare the various loans and determine what your EMI will be with the different lenders.
HDFC Bank Land Loan FAQs
1. How can I apply for a land loan from HDFC Bank?
HDFC provides customers multiple ways to apply for a land loan. It can be from anywhere using the online and customer care facilities or visit the nearest branch to talk to a representative to discuss the options and then apply. Customers can choose any one of the option they are comfortable with.
2. How long will it take for HDFC land loan approval?
It will take at least 1 week for the bank to do their due diligence and verify all the documents.
3. What is the maximum loan amount I can get from HDFC Land Loans?
There is maximum limit to the loan amount. It depends on the customer’s repayment capacity and the cost of the land.
4. Are there any concessions on interest from HDFC Land Loans?
There is concession in the interest rate for women on the interest rate of HDFC land loans
5. What is the processing fee for HDFC land loans?
The maximum processing fee is 1.50% of the loan amount up to maximum of Rs.4500 plus taxes
About HDFC Bank
Headquartered in Mumbai, HDFC Bank Limited is one of the most recognizable Indian banking and financial services company. Being the largest private sector lender by assets, HDFC Bank has braches, connect centres, ATM all across the country and a good online presence
