How does a plot loan work?
A plot loan finances the purchase of a residential plot in an approved layout. Banks usually lend a lower share than for a home loan, often around 70 to 75% of the price, and many require you to start building within a set period. A plot plus construction loan combines both into one.
Plot loan vs home loan
| Factor | Plot loan | Home loan |
|---|---|---|
| Share of price financed | Often up to 70 to 75% | Often up to 75 to 90% |
| Tax benefit | None on the plot alone; available once a house is built with a composite loan | Interest and principal deductions, as per tax rules |
| Construction condition | Often required within a few years | Not applicable |
Documents banks usually ask for
- KYC, income proof and bank statements.
- Allotment letter, agreement for sale and cost sheet.
- Layout approval, NA order and MahaRERA registration of the project.
- NRIs: passport, visa or work permit, overseas income proof.
Tips
- Match disbursement to the payment plan. At Godrej Rivershore Estate the plan is 20 : 40 : 40.
- Ask whether the bank has already approved the project; it speeds up sanction.
- Compare processing fees and whether the rate is linked to the repo rate.
Plot loans for Godrej Rivershore Estate are available from all major public and private sector banks. See prices and the payment plan →
Frequently asked questions
How much loan can I get for a plot?
Banks commonly lend around 70 to 75% of the plot price, depending on your income, the project's approvals and the bank's policy.
Is there a tax benefit on a plot loan?
Not on a plot alone. Deductions become available when you build a house, typically through a composite plot plus construction loan, as per tax rules.
Can NRIs get a plot loan in India?
Yes, many Indian banks offer NRI plot and composite loans in rupees, repaid from NRE, NRO or FCNR accounts.