Why using a calculator will get you the best plot loan
The first tool you need in the plot loan application process, is a plot loan eligibility calculator. This article explores its use and importance.
Have you ever nurtured the dream of having a little villa outside the city? It’s the perfect vision, and it can come true when you buy a plot of land and then build a house over it.
Leading housing finance companies in India offer loans for plot purchase. You might also consider taking a loan for plot purchase and construction whether you wish to live in the house permanently or not.
The lender checks your loan repayment capability, credit history and the plot documents in detail before approving the plot loan request. On your end, you should start by using a plot loan eligibility calculator to know how much loan amount you can get.
What is a plot loan calculator?
The plot loan eligibility calculator is an online tool provided by banks and housing finance companies to help customers compute their eligibility for the loan. You can input the numbers as directed, in terms of age, annual or monthly income, principal, interest rate and tenure (in months). The calculator then gives you an approximation of how much loan amount you can get within those parameters.
Why using a plot loan eligibility calculator helps
Lending institutions always recommend that applicants use the plot loan eligibility calculator before they start the loan application process. It helps in the following ways:
* Get an estimate of the how much loan you can get. You might believe that if you have a high income, then you can get a large amount of loan. But loans are seldom offered on such cut and dried terms. The lender checks your credit history, age, and income (minus certain heads like LTA and Medical Allowance) before taking the process forward. Using the eligibility calculator helps you find out if you can get as much loan as you need, or not.
* It helps you rethink the purchase proposition. On the off-chance that your loan eligibility is lower than you initially thought, you can rethink the purchase proposition in terms of looking at another plot, or renegotiating the purchase terms, or gathering your personal finances to meet the shortfall. It might not occur to you to do these things if you don’t use the calculator first.
* It streamlines the house hunt. Another advantage of using the plot loan eligibility calculator is that you get a clear idea of the plot you can buy. This saves a lot of time looking at and negotiating for plots that are out of budget. You can even revisit plots that you overlooked earlier for other reasons.
Apply plot purchase loan today
Study the lender’s list of documents required to apply for the loan for plot purchase and construction. You can fill out and submit the application online. Meanwhile, you can proceed with paying stamp duty and registration on the land, and submit the sale deed to the lender to move the loan process forward.
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