Hi,
We are looking for a good land purchase loan scheme ( not composite loan as we are not planning to construct a house soon) for a proper site in BDA approved lay out ( atleast as per the agent).I had a few queries as follows regarding the same:
1. The govt guidance value in the area is Rs 1200/sqft, where as the price quoted is 3900/sqft. So will the loan amount be based on 1200 or 3900?
2. In case its based on 3900, will we have to register it for 3900 as well?
3. Are there any other hidden costs/complications associated with the land purchase loan?
4. Do Nationalised banks ( like SBI ) give land loans too or is it limited to pvt banks like Axis/HDFC?
TIA,
Gauri
Loan for land purchase.
Re: Loan for land purchase.
Hi Gauri,
May I know which locality is it with guidance value at 1200 and quoted price at 3900? That's too high an offset. The govt revised guidance values as recently as in Sept-2011 and they had hiked it to bring it close to market value.
May I know which locality is it with guidance value at 1200 and quoted price at 3900? That's too high an offset. The govt revised guidance values as recently as in Sept-2011 and they had hiked it to bring it close to market value.
Last edited by awin on April 12th, 2012, 10:46 am, edited 1 time in total.
Re: Loan for land purchase.
Hi,
Thanx for the prompt reply. This is in Poorna Prajna layout , Uttarahalli.
I ve always thought that there is a big discrepancy between guidance value and market value even though I have no much experience in buying land before. Do you think this offset is too much?
May be I am wrong with the guidance value or market value then. Can some one guide me on this asap pls?
TIA,
Gauri
Thanx for the prompt reply. This is in Poorna Prajna layout , Uttarahalli.
I ve always thought that there is a big discrepancy between guidance value and market value even though I have no much experience in buying land before. Do you think this offset is too much?
May be I am wrong with the guidance value or market value then. Can some one guide me on this asap pls?
TIA,
Gauri
-
mramamurthy
- Posts: 6
- Joined: January 29th, 2012, 9:05 pm
Re: Loan for land purchase.
Hi,
There are couple of components you would need to determine first -
1. The Sale Price : This is the amount at you have agreed to purchase the BDA site from its owner.
2. Registration Value : This is the amount at which the site owner is willing to register the sale of the site. It should be the guidance value at the least. The Bank land loan will be based on this value.
3. Cash component : This is the difference between the Sale Price & Registration value. Typically to be paid in cash / off the record. This portion will not be funded by a bank land loan.
Bank Land loan funding is based on the Registration value. This is the same value which will appear on the Sale Agreement & Sale Deed.
Bank will typically fund 80% of the registration value. The rest has to be funded by the buyer before loan disbursement.
There is a processing fee involved and it varies from bank to bank ; It would be around 10k at the least.
The rate of interest for land loan is marginally higher (~.25%) than that of a home loan / composite loan.
Not sure if nationalized banks fund land purchase.
Regards,
Madhu
There are couple of components you would need to determine first -
1. The Sale Price : This is the amount at you have agreed to purchase the BDA site from its owner.
2. Registration Value : This is the amount at which the site owner is willing to register the sale of the site. It should be the guidance value at the least. The Bank land loan will be based on this value.
3. Cash component : This is the difference between the Sale Price & Registration value. Typically to be paid in cash / off the record. This portion will not be funded by a bank land loan.
Bank Land loan funding is based on the Registration value. This is the same value which will appear on the Sale Agreement & Sale Deed.
Bank will typically fund 80% of the registration value. The rest has to be funded by the buyer before loan disbursement.
There is a processing fee involved and it varies from bank to bank ; It would be around 10k at the least.
The rate of interest for land loan is marginally higher (~.25%) than that of a home loan / composite loan.
Not sure if nationalized banks fund land purchase.
Regards,
Madhu
Re: Loan for land purchase.
Hi.. Please dont pay that much current price is 3000 per sqft... bcoz of people paying more they have incresed the price every month.. U can get a good deal in magic bricks were all the sites mentioned are not more than 3700..
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OldWorldCharm
- Posts: 44
- Joined: November 4th, 2010, 8:54 am
Re: Loan for land purchase.
Hi,
LIC and Corporation Bank also fund land purchase, but throw up a lot of conditions like it needs to be a BDA site, you should be the direct allotee etc. (at least this is what I got from Corporation Bank). And the best part is, the officials behave as if they are doing a personal favour to you by even considering your application! They are yet to wake up from their slumber. Overall, only SBI has been able to rise above the usual goverment organization lethargy to a great extent and play at par with private entities.
I found HDFC to be the most seamless in honouring the loan request (for my BDA site).
LIC and Corporation Bank also fund land purchase, but throw up a lot of conditions like it needs to be a BDA site, you should be the direct allotee etc. (at least this is what I got from Corporation Bank). And the best part is, the officials behave as if they are doing a personal favour to you by even considering your application! They are yet to wake up from their slumber. Overall, only SBI has been able to rise above the usual goverment organization lethargy to a great extent and play at par with private entities.
I found HDFC to be the most seamless in honouring the loan request (for my BDA site).
Re: Loan for land purchase.
Hi All,
I am in process of taking plot(Site) from bank.
Do Bank give Plot(site) loan only 75-80% of Registration Value ?, because the govt guidance value is very much lower to market value, and do bank give only 75-80% of govt guidance value ?
Or they give loan based on valuation of the land by bank officals and do they consider market value to give loan ?
I am very much confused,
Pl. help
I am in process of taking plot(Site) from bank.
Do Bank give Plot(site) loan only 75-80% of Registration Value ?, because the govt guidance value is very much lower to market value, and do bank give only 75-80% of govt guidance value ?
Or they give loan based on valuation of the land by bank officals and do they consider market value to give loan ?
I am very much confused,
Pl. help
Re: Loan for land purchase.
Hi All,
PL. See following link
http://www.r2iclubforums.com/forums/showthread.php/18451-HDFC-Home-Loan-Contact-details-for-availing-loans-in-Delhi-NCR-area
After seeing this, I am still more confused...
PL. See following link
http://www.r2iclubforums.com/forums/showthread.php/18451-HDFC-Home-Loan-Contact-details-for-availing-loans-in-Delhi-NCR-area
After seeing this, I am still more confused...
Re: Loan for land purchase.
Hi,
I have the latest info from HDFC regarding the availing of site loans in bangalore. So let me try explaining your queries here.
Yes, the bank gives the site loan only on the basis of the Registration value and not on the market value. They evaluate the property cost on their on and gives loan based on that ONLY for the Home loan ( and NOT for the site loan).
And the Registration value need not be the Govt Guidance value, it can be any value greater than that.
So for example, if the market value is 60L and govt guidance value is 20L , you can still avail a max loan amt of 48L ( which is 80% of 60L), if you register the property at 60L. Its just that you need to shell out more amount as the registration cost and the entire transaction will be 'white'.
Hope I was able to clarify your doubts.
* Axis bank gives you loan based on the Market value, but you need to sign an affidavit saying that you will start House construction in 18 months time.
Cheers,
Gauri
I have the latest info from HDFC regarding the availing of site loans in bangalore. So let me try explaining your queries here.
Yes, the bank gives the site loan only on the basis of the Registration value and not on the market value. They evaluate the property cost on their on and gives loan based on that ONLY for the Home loan ( and NOT for the site loan).
And the Registration value need not be the Govt Guidance value, it can be any value greater than that.
So for example, if the market value is 60L and govt guidance value is 20L , you can still avail a max loan amt of 48L ( which is 80% of 60L), if you register the property at 60L. Its just that you need to shell out more amount as the registration cost and the entire transaction will be 'white'.
Hope I was able to clarify your doubts.
* Axis bank gives you loan based on the Market value, but you need to sign an affidavit saying that you will start House construction in 18 months time.
Cheers,
Gauri
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lakshmividyasagar
- Posts: 4
- Joined: September 23rd, 2011, 9:55 am
Re: Loan for land purchase.
Hi Gauri,
Have you bought or decided to buy the plot in pp layout for. 3900/ sqft. If you could please let me know the dimension and final price, it would be of great help. We are also deciding on buying a plot in pp layout. We are in great confusion. Your info will be of huge help.
Thanks in advance
Have you bought or decided to buy the plot in pp layout for. 3900/ sqft. If you could please let me know the dimension and final price, it would be of great help. We are also deciding on buying a plot in pp layout. We are in great confusion. Your info will be of huge help.
Thanks in advance