With Axis Bank’s Plot Loan, you unlock competitive rates, flexible repayment options, and a hassle-free process designed just for you.
Whether you’re planning to construct immediately or laying the groundwork for tomorrow, our loan is tailored to empower your vision. Ready to take the first step towards true home ownership?
AXIS Bank plot and construction loan – interest rates, eligibility, EMIs, and other key details
Axis Bank offers plot loans and construction loans to help individuals purchase land and construct homes. Here’s a breakdown of key details:
Interest Rates
- Interest rates for construction loans are typically higher than standard home loans due to the increased risk associated with construction projects.
- Plot loan interest rates start from 8.75% p.a. and can vary based on the applicant’s credit score, income stability, and loan tenure.
- For salaried individuals with a credit score of 751 and above, interest rates may start at 8.75% p.a. Self-employed individuals with a similar credit score may see rates starting at 9.10% p.a. Loan Details & Features
- Loan Amount: Axis Bank provides home loans starting from ₹3 lakh and up to ₹5 crore.
- Loan Tenure: Repayment tenures can extend up to 30 years.
- Disbursement: For construction loans, disbursement occurs in installments as construction progresses.
- Prepayment: No prepayment charges are applied to floating-rate loans.
Types of Plot Loans - Residential Plot Loans: For land in approved areas to build a home.
- Commercial Plot Loans: For businesses to buy land for commercial development.
- Plot and Construction Loans: Covers land purchase and construction costs. Eligibility & Requirements
- Applicants need a stable income and a good credit score.
- The land purchased must be for residential use and in approved locations.
Additional Points - Axis Bank may finance up to 80% of the construction cost.
- The cost of the plot can be considered when disbursing the loan amount, but if the plot was inherited, its value might not be considered.
- The loan doesn’t cover interior decor, painting, furniture, or fixtures, but is intended for immovable objects.
- Home insurance against floods, fire, and earthquakes is generally required.
- Balance transfer and quick processing options are available.
Source of Information: Take a Loan for Constructing Your Dream Home | Axis Bank
What is a Construction Loan?
A construction loan is a short-term loan designed to finance the building of a new home on a plot of land. Unlike a standard home loan, which is used to purchase an existing property, a construction loan covers the costs of building the house from scratch.
The loan is disbursed in stages as the construction progresses, with higher interest rates due to the increased risk involved. Once construction is complete, you can often convert the construction loan into a regular home loan.
Axis Bank Construction Loan Interest Rates
The Axis Bank offers construction loans with interest rates that vary based on factors such as the applicant’s credit score, income stability, and loan tenure.
| Category | Credit Score | Interest Rates | Rate Options |
|---|---|---|---|
| Salaried | 750+ | Starting at 8.75% p.a. | Fixed and Floating |
| Self Employed | 750+ | Starting at 9.10% p.a. | Fixed and Floating |
Types of Axis Bank Plot Loans
Axis Bank offers a variety of plot loan options to cater to different needs, whether you’re planning to build a home, develop a commercial space, or both.
| Type | Description |
|---|---|
| Residential Plot Loans | For purchasing land in approved layouts to build a home. |
| Commercial Plot Loans | Tailored for businesses or entrepreneurs to buy land for commercial development. |
| Plot and Construction Loans | Covers both land purchase and construction, ideal for immediate building after buying the plot. |
Difference Between Construction Loan and Home Loan
A construction loan and a home loan serve different purposes, even though both help in financing property-related needs.
A regular home loan is designed for purchasing already constructed properties, while a plot loan specifically caters to buying a piece of land where construction is either intended or mandatory.
Here’s a clear breakdown of the key differences:
| Aspect | Plot Loan | Regular Home Loan |
|---|---|---|
| Purpose | Specifically for financing the construction of a building. | For purchasing an already constructed house or apartment |
| Disbursement | Funds are released in stages as construction progresses. | Lump sum disbursement at the time of loan approval |
| Interest Rates | Typically higher due to the perceived higher risk | Generally lower compared to construction loans |
| Documentation | Requires detailed building plans, budgets, and timelines | Requires property details and proof of sale |
| Inspection | Regular inspections are required to release funds | Inspection before loan approval, not typically ongoing |
| Risk | Higher risk as construction may face delays or budget overruns | Lower risk, as the property is already built |
Axis Bank 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.
Benefits of Axis Bank Construction Loan
- Flexible Loan Amounts: Offers a wide range of loan amounts to suit different financial needs.
- Attractive Interest Rates: Competitive interest rates to make plot purchases affordable.
- Easy Documentation: Simplified and hassle-free documentation process for quick approvals.
- Flexible Repayment Options: Various repayment tenure options to fit different budget plans.
- Prepayment Facility: Option to prepay the loan without hefty penalties.
- Balance Transfer Facility: Transfer your existing plot loan from another bank to Axis Bank for better terms.
- Quick Processing: Fast loan processing and approval to expedite your plot purchase.
- Dedicated Customer Support: Access to personalized customer support for all loan-related queries.
- Transparent Procedures: No hidden charges, ensuring a transparent loan process.
- Insurance Cover: Option to avail insurance cover for loan protection.
Conclusion
Choosing the right loan for your land purchase is crucial. The Axis Bank Plot Loan provides a reliable option with competitive interest rates and flexible terms. Whether you plan to build immediately or in the future, this loan is tailored to meet your needs. With straightforward eligibility criteria and a transparent process, the Axis Bank Plot Loan makes owning a plot simpler and more accessible.
Ready to explore your options? At Credit Dharma, we can help you find the best loan for your land purchase. Our experts will guide you through the process, ensuring you make informed decisions that align with your financial goals.
Frequently Asked Questions [FAQs]
It’s a loan to help you buy a plot of land for building a house.
Anyone with a stable income and a good credit score can apply.
The loan amount depends on your income and the plot’s value.
The land must be for residential use and in approved locations.
Yes, you can convert it into a home loan once construction begins.
HDFC Home Loan
SBI Home Loan
