Buyer's Guide Housing Loan: Is there any loan provision for purchase of plot of land ?



Yes, loan for plot of land purchase is available as long as it is for residential purposes only.

Several  mortgage lenders like  LIC HFL, HDFC and Banks like ICICI Bank, State Bank of India (SBI) offer this loan.

You can get up to 60% to 80% of the purchase amount based on your credit profile and repaying capacity.

You get no tax breaks if you take a loan to buy a plot of land. But, if you take a loan for construction, that means a loan to build a house on that plot of land, then you can get a tax break.

In such a case, the tax benefits are available on both portions of the loan the one to purchase the plot of land & the one taken to construct the house thereon.


Please note that the benefits under Section 80 C (Repaying Principal) and Section 24 (Interest) can be availed only when the construction of the home is complete.
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