Loans for purchasing a residence and having a plot may simply appear to be getting another mortgage loan, however it’s maybe perhaps not. Land loan and mortgage loan might appear similar on numerous parameters, but involve some fundamental distinctions.
Loans for purchasing a home and having a plot may seem like getting just another mortgage, however it’s perhaps maybe not. Land loan and mortgage loan might appear comparable on numerous parameters, but possess some differences that are fundamental.
Let’s uncover what the differences are and what type is suited to you.
Home vs Land
Both land and mortgage loans can be found by banking institutions and Non-Banking Financial Companies (NBFC) to all or any Indian residents older than 21 years. Some banking institutions additionally provide land loans to Non-Residents Indians (NRI) in the event that land has been purchased to make a home.
While a mortgage is given by way of a bank or an NBFC purchasing a residence this is certainly currently built, under construction, or happens to be approved for construction within the current future, for land loans you need to ensure that the block of land you want to buy is really a residential plot. (more…)