does bank also lends money to people to buy houses car land
Answers
Answer:
Indian investors are traditionally inclined towards buying land either purely as an investment or for building a house. So, if you are looking to buy a plot, you may not be eligible for a home loan, but for a land loan. Home loans are available only for the property already constructed, under construction or likely to undergo construction soon. For funding the purchase of a vacant plot, you will have to go for a land loan instead. Although the terms, rates and processes related to land loans are similar to that of a home loan, there are some intrinsic differences between the two as outlined below:
Property Location and Type: Unlike home loans which are available on all properties irrespective of their location or type, you may get a land loan only for a residential plot. Also, “the property should be located within municipal or corporation limits. Consequently, you cannot obtain funding for buying an agricultural land, or for buying a piece of land in a village. But you can go for a home loan, for constructing your house in that piece of land, after the purchase,” says Adhil Shetty, founder & CEO of BankBazaar.com.
Lower LTV: Loan To Value (or LTV) is the quantum of loan you can get against a property. While you can avail up to 80-85% funding in a home loan (90% in some cases), for a land loan, the maximum LTV is stipulated at 70% of the plot value at best. This effectively means that if you are considering buying a plot for either personal use or as an investment, you would have to shell out a minimum of 30% of the funds from your own pocket.
No Tax Benefits: Unlike a housing loan, which is eligible for tax deduction for payment of both interest as well as the principal amount, land loans do not offer any such benefit. “You can avail tax deductions only if you are constructing a house in the plot. The deduction in that case is applicable only for the loan amount taken against construction, and only after completion of the construction activity,” informs Shetty.
Explanation:
Answer:
Yes but by collateral security
Explanation:
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