Dreaming of owning a piece of land where you can build your future home? HDFC Plot Loan is here to turn that aspiration into reality. Offering competitive interest rates and flexible repayment options, this loan empowers you to secure the perfect plot for your dream home or investment.
What is a Plot Loan?
A plot loan is a type of financial product that allows you to borrow money specifically for the purchase of a piece of land or plot. Unlike a home loan, which is used to buy a ready-built house or construct one on a plot, a plot loan is exclusively for buying land, whether for future construction or as an investment.
Difference Between Plot Loan and Home Loan
When considering financing options for purchasing property, it’s essential to understand the difference between a plot loan and a home loan. While both loans provide the funds needed for real estate purchases, they serve distinct purposes and come with different terms and conditions.
Let’s explore the key distinctions:
| Aspect | Plot Loan | Regular Home Loan |
|---|---|---|
| Purpose | For building a new home or major renovations | For buying a ready-made house |
| Disbursement | Released in stages as construction progresses | Usually released in one lump sum |
| Interest Payments | Often interest-only payments during construction | Regular EMIs start immediately |
| Risk | Higher risk for the bank due to potential construction issues | Lower risk as the property already exists |
| Loan Term | Short-term, typically converting to a home loan after construction | Long-term from the start |
HDFC Plot Loan EMI Calculator
- Adjust the slider to set your desired loan amount.
- Use the slider to select the applicable interest rate.
- Select your preferred repayment period using the tenure slider.
- The calculator will display your monthly EMI, total interest, and overall payment summary.
- Check the pie chart for a visual breakdown of the principal and interest components.
HDFC Construction Loan Interest Rates
HDFC Bank offers Special and Standard home loan interest rates for salaried and self-employed (Professionals and Non-Professionals).
| Loan type | Interest Rate (p.a.) |
|---|---|
| Special HDFC Plot Loan Interest Rates | 8.75%-9.65% |
| Standard Interest Rates on HDFC Plot Loan | 9.40%-9.95% |
Conclusion
HDFC Bank’s construction loan can be a great option if you’re planning to build your home from scratch. It offers flexibility during the construction process and can later be converted into a regular home loan. Consider your financial situation carefully and use the eligibility calculator to get an idea of what you might qualify for, before applying for the loan.
Need more guidance on your home loan journey? Contact Credit Dharma for a free consultation. Our experts can help you navigate construction loans and find the best option for you.
Frequently Asked Questions
Yes, HDFC Bank’s construction loan can often be used to purchase land as well as fund the construction. However, the specifics can vary, so it’s best to check with the bank directly.
Minor changes might be possible, but significant changes could require a reassessment of your loan. Always communicate with HDFC Bank before making any major changes to your construction plans.
Yes, typically the land and the structure being built serve as collateral for the loan. In some cases, HDFC Bank might require additional collateral depending on the loan amount and your financial situation.
Yes, you can claim tax deductions on the interest paid on an HDFC Construction Loan under Section 24 of the Income Tax Act.
HDFC Bank offers Construction Loans ranging from ₹25 lakhs to ₹10 crores, depending on your eligibility and the cost of construction.
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