A site mortgage, also known as a plot loan or land loan, is a type of secured loan provided by financial institutions to individuals for the purpose of purchasing a plot of land. This land can be used for residential or commercial purposes, and the loan is secured against the plot itself.
Secured Loan: A site mortgage is a secured loan, meaning the plot of land being purchased serves as collateral. This reduces the lender's risk and often results in lower interest rates compared to unsecured loans.
High Loan Amounts: Lenders typically offer high loan amounts based on the market value of the plot. The loan amount can be up to 75-80% of the plot's value, depending on the lender's policies.
Competitive Interest Rates: Due to the secured nature of the loan, site mortgages usually come with competitive interest rates, making it an affordable borrowing option.
Flexible Repayment Terms: Borrowers can choose repayment terms that suit their financial situation, with options ranging from 5 to 15 years or more, depending on the lender's policies.
Multipurpose Use: The funds obtained through a site mortgage can be used for various purposes, such as purchasing a residential plot, constructing a house, or investing in commercial land.
• You must have a good credit history
• Nature of Employment: Salaried employee of a public or private organization, or Self-employed professional.
• You must be able to provide collateral, such as property or equipment
• Age: Minimum of 21 years at the time of application and Maximum of 65 years by the time of loan maturity.
• Nationality: Resident Indian
• Income :Minimum monthly income based on the location and type of employment.
•Credit Score: 750 or above, with a good credit history.
• Work Experience: Overall work experience: At least 1 year and In current organization: At least 6 months
At Fintech ,documentation for Site mortgage applications involves basic KYC documents(PAN, address proof) bank statements and Personal documents. Here is a list for quick references
SALARIED | SELF EMPLOYED |
PAY SLIP LAST 3 MONTHS | GST CERTIFICATE |
BANK STATEMENT LAST 6 MONTH | GST 3B RETURNS LAST ONE YEAR |
EMPOLYEE ID CARD | ITR LAST 3 YEARS |
FROM 16 (LAST 2 YEAR). | BANK STATEMENT LAST ONE YEAR TO TILL DATE AND MSME/UDHAYAM |
Large Loan Amount: Access to higher loan amounts by leveraging the value of your plot.
Affordable Financing: Competitive interest rates and flexible repayment options make it an affordable borrowing solution.
Multipurpose Use: Funds can be used for various personal or professional needs.
Retain Ownership: Continue using the plot while repaying the loan.
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