Can you get a loan to buy a plot?
Yes. Banks and housing finance companies offer plot loans (also called land purchase loans) for residential NA plots in approved layouts, usually up to 75 to 80% of the plot value, for 10 to 20 years. Most lenders require you to start or finish building a house within a set period, and they check the layout approval, title and RERA registration before lending.
How is a plot loan different from a home loan?
| Plot loan | Home loan | |
|---|---|---|
| What it pays for | Residential land only | A built house or flat |
| Typical funding | Up to 75 to 80% of plot value | Up to 75 to 90% of property value |
| Tenure | Usually 10 to 20 years | Up to 30 years |
| Rates | Often a little higher | Lowest secured retail rates |
| Tax benefit while it is only land | None | Interest and principal deductions (old regime) |
| Condition | Build within the lender's deadline | None of this kind |
What interest rates are banks charging on plot loans in 2026?
Published plot loan rates in mid-2026 start at roughly 7.35% to 9.5% a year depending on the lender, with the rate you get set by your credit score, income and the loan amount. Listings in July 2026 showed SBI from 9.50%, ICICI from 7.55%, Kotak from 7.60% and LIC Housing Finance from 7.35%.
Starting rates from a July 2026 comparison listing. Your offer will differ; get written sanction terms from two or three lenders.
What does the EMI look like on a ₹69.9 L plot?
| Item | Amount |
|---|---|
| Plot price (1,250 sq ft, all-in) | ₹69.9 L |
| Loan at 75% | ₹52.4 L |
| Your down payment (25%) | ₹17.5 L, plus stamp duty and registration |
| EMI at 8.5% for 15 years | ~₹51,600 a month |
| EMI at 9.0% for 15 years | ~₹53,200 a month |
| EMI at 9.5% for 15 years | ~₹54,700 a month |
Which plots do banks lend on?
- Residential NA (non-agricultural) plots, not agricultural land
- Layouts approved by the planning authority (NMRDA in the Nagpur region)
- Clear, marketable title with no undisclosed charges
- Projects registered with MahaRERA, ideally already approved by the bank
If a project has a lender's charge on the land (common with project finance), the bank will ask how your plot is released from it at registration. Ask the developer which banks have already approved the project; it saves weeks.
Do you get a tax benefit on a plot loan?
Not while it is only land. Once you build a house on the plot and move in, you can usually convert the loan into a home loan. Under the old tax regime, principal and interest then qualify for deductions, and interest paid before completion can be claimed in five yearly instalments. The default new regime does not allow these deductions for a self-occupied home.
What is the build-within deadline?
Many lenders ask you to complete construction within a fixed period, often a few years from disbursement, or they may reprice the loan. The period varies by lender, so get it in writing. In an estate where internal roads and utilities are still being built, check that the lender's deadline falls after the developer's handover date.
Example project used in this guide: HoABL Nagpur Marina, MahaRERA PP1190002502095, 918 plots at Mondha, Hingna, from ₹69.9 L all-in for 1,250 sq ft (October 2026). See price, plots and visit slots.
Frequently asked questions
How much loan can I get on a plot?
Usually up to 75 to 80% of the plot's value. You pay the rest, plus stamp duty and registration, from your own funds.
Can NRIs take a plot loan in India?
Yes, many banks lend to NRIs for residential plots, repaid from NRE or NRO accounts, with similar eligibility checks plus overseas income proof.
Is a plot loan possible for agricultural land?
Generally no. Plot loans are for residential NA plots in approved layouts. Agricultural land needs a different kind of financing, if any.
Can I get one loan for the plot and construction?
Yes. Many lenders offer a composite loan that funds the plot first and construction later in stages.
Sources
- BankBazaar: Plot loans 2026, interest rates and features (updated July 2026)
- EMI Calculator: All you need to know about plot loans
General information, not legal, tax or financial advice. Rules and rates change; confirm with the sub-registrar, your bank or a chartered accountant before acting.