Land financial services are a type of credit that one can use to buy a vacant land. Land financial service can be availed usually to purchase a Non-Agricultural plot or piece of land which is under municipal / local development authorities limit.
If you want to buy a house but currently can’t afford it or when you want to buy just a plot for investment purpose, plot financial service will be highly beneficial.
Land financial service is normally given for the maximum tenure of 10-15 years and in some Banks /NBFC rate of interest will be slightly higher than home financial service so emi of plot financial service can be slightly higher.
Bankers find funding land risky so they restrict the LTV to 60-80% of the plot cost. Also land financial service comes with a construction clause, if the house is not constructed within the stipulated period of 2-5yrs. Bankers may increase the rate of interest over and above the existing rate of land financial service
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