Plot + Construction Loan tips

[nikhilk21]

Hi everyone. I'm planning to take a loan to buy a piece of residential land from a developer. I came to know from the bank people that the interest rate would be lower if I take it as a plot + construction loan wherein there's a tenure from the loan disbursement within which I should've started construction. In Hdfc it is 2 years, SBI it is 3 years and ICICI it is 4 years.

I'm planning to go with ICICI as the construction wait period is longer and anyway I don't have intention to construct as this is more for an investment purpose. I aim to take the loan tenure for 6 years and try to close it by 4. The interest rate offered to me is 8.7% (780+ CIBIL)

As this is my first loan, I'm looking for any general tips and advice. Is it possible to pay emi with credit card?

 

[VasukiVasuki is verified member.]

Is it possible to pay emi with credit card?

You are very nice question

I don't have intention to construct as this is more for an investment purpose

Investment v aur emi with credit card 🤨

As this is my first loan, I'm looking for any general tips and advice

Check my home loan thread 🧵 on how to save money on interest.
Also icici is good choice but keep in mind if they allow smooth pre - payment of random amounts.
Else go with sbi ..
If you have specific questions ask

 

[nikhilk21]

You are very nice question

 

[nikhilk21]

Check my home loan thread 🧵 on how to save money on interest.
Also icici is good choice but keep in mind if they allow smooth pre - payment of random amounts.
Else go with sbi ..
If you have specific questions ask

Will take a look at your thread. I think SBI offers slightly lower interest rate but I'm genuinely afraid to do any business with them. Worried that I might get scammed or that there won't be good customer support/flexibility in pre-payment.

 

[VasukiVasuki is verified member.]

Will take a look at your thread. I think SBI offers slightly lower interest rate but I'm genuinely afraid to do any business with them. Worried that I might get scammed or that there won't be good customer support/flexibility in pre-payment.

Sbi or any psu bank is best in pre payment
Hdfc is most cocky ..
Icici I heard is okiesh among private just ask clearly about pre payment
It will save tons of money on intrest if you planning to repay early

 

[avikrish]

Sbi or any psu bank is best in pre payment
Hdfc is most cocky ..
Icici I heard is okiesh among private just ask clearly about pre payment
It will save tons of money on intrest if you planning to repay early

Yes , psu Banks are pocket friendly to customers, when it comes to interest rates, pre payment, less charges but customer support is ok , cannot expect same as private.

But I feel ok to go with psu if you have time to save money on loan interest charges

 

[sauravkumar]

Hi everyone. I'm planning to take a loan to buy a piece of residential land from a developer. I came to know from the bank people that the interest rate would be lower if I take it as a plot + construction loan wherein there's a tenure from the loan disbursement within which I should've started construction. In Hdfc it is 2 years, SBI it is 3 years and ICICI it is 4 years.

I'm planning to go with ICICI as the construction wait period is longer and anyway I don't have intention to construct as this is more for an investment purpose. I aim to take the loan tenure for 6 years and try to close it by 4. The interest rate offered to me is 8.7% (780+ CIBIL)

As this is my first loan, I'm looking for any general tips and advice. Is it possible to pay emi with credit card?

If it is okay then can you please share the location where you have bought land/planning 😁😁

 

[VasukiVasuki is verified member.]

If it is okay then can you please share the location where you have bought land/planning 😁😁

💀 Noiceee
I see where you going

Buying land with credit card points 🤣🤣

 

[nikhilk21]

If it is okay then can you please share the location where you have bought land/planning 😁😁

It is in Thiruvallur, an area under Greater Chennai Corporation. The developer is Urbanrise

 

[paxauquabriba-4876]

google reviews say somethng

 

[prankster]

Go with SBI, the loan process is a bit tedious but prepayment is smooth and you can get most problems sorted over RACPC email

 

[nikhilk21]

The only problem with SBI is their minimum time period to start construction is 3 years. If we dont start by then, they may increase the interest to the commercial rate. From my understanding, this is not uniform and some people may be audited randomly and based on that they would increase. Given that I am not planning to construct, it seems a bit risky. That's why I am leaning towards ICICI where the time period is 4 years...

@prankster @Vasuki

 

[avikrish]

The only problem with SBI is their minimum time period to start construction is 3 years. If we dont start by then, they may increase the interest to the commercial rate. From my understanding, this is not uniform and some people may be audited randomly and based on that they would increase. Given that I am not planning to construct, it seems a bit risky. That's why I am leaning towards ICICI where the time period is 4 years...

@prankster @Vasuki

Try union Bank once

 

[paxauquabriba-4876]

The only problem with SBI is their minimum time period to start construction is 3 years. If we dont start by then, they may increase the interest to the commercial rate. From my understanding, this is not uniform and some people may be audited randomly and based on that they would increase. Given that I am not planning to construct, it seems a bit risky. That's why I am leaning towards ICICI where the time period is 4 years...

@prankster @Vasuki

which bank offers the farthest period for cinstruction criteria i.e. any bank offer more than 4 years of icici ?

 

[nikhilk21]

which bank offers the farthest period for cinstruction criteria i.e. any bank offer more than 4 years of icici ?

I don't think so any other bank offers farther...

 

[paxauquabriba-4876]

btw whts the exact criteria for construction what if u just park a modified shiping container home

 

[nikhilk21]

btw whts the exact criteria for construction what if u just park a modified shiping container home

Haha, I thought so as well. You need to submit to the bank a construction and building plan approval from the govt., which is construed as a valid proof and then the bank team may visit the site from time to time

 

[paxauquabriba-4876]

Haha, I thought so as well. You need to submit to the bank a construction and building plan approval from the govt., which is construed as a valid proof and then the bank team may visit the site from time to time

got it. i guess building plan approval from govt for shipping container will be an issue.
btw how much % difference for plot vs Plot+construction loan

 

[paxauquabriba-4876]

Hi everyone. I'm planning to take a loan to buy a piece of residential land from a developer. I came to know from the bank people that the interest rate would be lower if I take it as a plot + construction loan wherein there's a tenure from the loan disbursement within which I should've started construction. In Hdfc it is 2 years, SBI it is 3 years and ICICI it is 4 years.

I'm planning to go with ICICI as the construction wait period is longer and anyway I don't have intention to construct as this is more for an investment purpose. I aim to take the loan tenure for 6 years and try to close it by 4. The interest rate offered to me is 8.7% (780+ CIBIL)

As this is my first loan, I'm looking for any general tips and advice. Is it possible to pay emi with credit card?

once & when free btw can you please share a detailed post + log of all events your journey + chronologically

as of now can you share the websites you vistited before selecting plots

 

[nikhilk21]

got it. i guess building plan approval from govt for shipping container will be an issue.
btw how much % difference for plot vs Plot+construction loan

Yes. When I was searching for plots, I was surprised that so many banks were ready to give loans for an investment. They never spoke about this loophole during enquiry. Only after I booked a plot and decided to go for loan they shared all these things.

If you're going just for plot, it will be treated as commercial loan and rate of interest will be 1-2% higher than plot+construction loan