In today’s time, any person may need money at any time. In such a situation, taking a loan from the bank is a good way to meet your needs. Its biggest advantage is that you can easily get a loan at low interest. To get a loan at low interest, you have to give some mortgage. Taking loan by mortgaging land is considered to be one of the most economical ways. Land is a valuable asset.
For what purposes can a loan be taken against land?
By mortgaging the land, you can easily take loan for construction of house, repayment of personal loan and other purposes including business expansion. To take a loan, you must be the owner of the land. Along with this, all types of documents should be complete.
Amount, interest rate and tenure
There are many factors in the amount received by mortgaging the land. Like what is the size of your land and at what location is the land. The bank gives loan only after assessing it. This is a secured loan. For this reason the interest is usually low. Talking about the tenure, you can take loan as per your requirement, it can be from a few months to several years.
Documents required to take loan on land
- land documents
- Aadhar card
- Salary Slip or ITR
- Bank statement
Keep these things in mind while taking loan on land
Taking a loan against mortgage of land gives you a lot of flexibility, but it also carries a lot of risk. Any action taken by the regulator affects the value of your land. Apart from this, the value of land keeps changing due to changing economic conditions. Apart from this, if you are not able to repay the loan installment on time, your land may also be auctioned.
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