Buying land and building your dream home on it is a cherished goal for many families. While most people know about home loans, not everyone is aware of plot loans. HDFC, one of India’s leading housing finance companies, offers HDFC Plot Loan, designed especially for individuals who want to purchase a residential plot and build a house in the future.
In this article, we will explore the features, eligibility, benefits, and FAQs related to HDFC Plot Loan.
What is HDFC Plot Loan?
HDFC Plot Loan is a specialized loan product that helps individuals purchase a residential plot within approved municipal or development authority limits. Unlike a regular home loan, which is only for ready or under-construction houses, a plot loan is only for buying land meant for residential construction.
HDFC also allows customers to combine a plot purchase with a construction loan, which can be availed later when you are ready to build your home.
Key Features of HDFC Plot Loan
Here are some important highlights of HDFC Plot Loan:
Purpose – To purchase a residential plot of land (not agricultural or commercial land).
Loan Amount – Up to 70–80% of the plot’s market value, depending on borrower profile.
Loan Tenure – Maximum 15 years, shorter than typical home loans.
Interest Rate – Competitive, but usually a little higher than home loan interest rates.
Repayment Options – Flexible EMI options with both floating and fixed interest rates.
Top-Up Facility – Customers may get an option to extend the loan into a Plot + Construction Loan.
Tax Benefits – No tax benefits on just the plot loan. However, tax deductions are available once you take a construction loan on the same plot.
Approval Criteria – The land must be within municipal or development authority limits.
Eligibility for HDFC Plot Loan
To apply for HDFC Plot Loan, you need to meet certain eligibility conditions:
Applicant Type – Salaried, self-employed, and professionals can apply.
Age – Generally 21 to 65 years (at loan maturity).
Income – Minimum stable income as per HDFC policy.
Credit Score – Good CIBIL score improves approval chances.
Co-Applicant Option – You can apply with your spouse or close family members for a higher loan amount.
Documents Required
To apply for HDFC Plot Loan, you will need:
KYC Documents – Aadhaar, PAN, Passport, Voter ID.
Income Proof – Salary slips, bank statements, ITR for self-employed.
Property Documents – Sale deed, title deed, approved layout plan, and NOC from local authority.
Photographs – Passport-size photographs of applicants.
Benefits of HDFC Plot Loan
- Helps you buy land in prime locations within approved limits.
- Offers flexible tenure up to 15 years.
- Option to convert into a home construction loan.
- Easy online and offline application process.
- High loan-to-value ratio (up to 80%).
- Trusted support from HDFC’s strong financial network.
Things to Keep in Mind
Agricultural or commercial land is not eligible.
No tax rebate unless you build a house.
Ensure the property has clear legal ownership.
Tenure is shorter compared to home loans.
20 FAQs on HDFC Plot Loan
Q1. What is HDFC Plot Loan?
HDFC Plot Loan is a loan to buy a residential plot of land for building a house in the future.
Q2. Can I buy agricultural land with this loan?
No, agricultural or commercial plots are not eligible.
Q3. What is the maximum loan amount I can get?
You can get up to 70–80% of the plot’s market value.
Q4. What is the maximum repayment tenure?
Up to 15 years.
Q5. Who can apply for HDFC Plot Loan?
Salaried individuals, self-employed professionals, and business owners can apply.
Q6. What is the minimum age to apply?
Generally, 21 years.
Q7. Do I need a co-applicant?
It is optional, but having one increases loan eligibility.
Q8. Can NRIs apply for HDFC Plot Loan?
Yes, subject to certain terms.
Q9. What documents are required?
KYC, income proof, property papers, and photographs.
Q10. Can I get tax benefits on a plot loan?
No, unless you take a construction loan on the same plot.
Q11. What is the interest rate?
It is slightly higher than home loan rates and may vary as per your profile.
Q12. Can I prepay the loan?
Yes, prepayment and foreclosure are allowed as per HDFC policy.
Q13. Is CIBIL score important?
Yes, a good credit score improves chances of approval.
Q14. Can I buy land outside city limits?
Only if the land falls under an approved authority.
Q15. Can I transfer my existing plot loan from another bank to HDFC?
Yes, balance transfer is possible.
Q16. Can I apply online?
Yes, HDFC offers online applications with doorstep assistance.
Q17. What happens if I want to construct a house later?
You can upgrade the plot loan into a plot + construction loan.
Q18. Can joint owners apply together?
Yes, joint applications are allowed.
Q19. What is the processing fee?
It varies, usually a percentage of the loan amount.
Q20. How long does it take for loan approval?
Usually within a few days, depending on documentation.
Conclusion
HDFC Plot Loan is an excellent choice if you want to purchase a residential plot and build your dream home later. With flexible repayment options, trusted service, and the ability to upgrade to a construction loan, it gives you complete control over planning your future home.
If you’re ready to buy land, explore HDFC Plot Loan and take the first step toward your dream house.
