Owning land in this generation is not a small thing, since everything is becoming overprice and the income level is not much to get a land. Having a land brings an incredible feeling of pride and ownership. It also brings a lot of happiness with a sense of joy and achievement for the landowner with powerful emotions. It also plays a key role in an excellent understanding of security and peace of mind.
In many countries, owning a piece of land will fulfill long dreams. Interestingly, people can build their dream home on their plot. The land can be used in the need of time to get a loan. A mortgage loan against vacant land can be used in different ways as per the need of the owner. The fund can be used to develop a factory or build any commercial business plant to the pledge plot for land.
Eligibility criteria
Before making any application with the lender, ensure that you have completed all the necessary research towards the loan against the property eligibility check; otherwise, your mortgage loan against vacant land won’t be complete.
For salaried individuals:
- The person should be a minimum of 18 years and have a maximum age of 60 years group age.
- The person should be a resident of the country and have the residential status.
- The person should have an educational degree with him or her.
- Person should be employed in a private limited company, partnership firm, MNC, public limited company, Government or public sector company.
- Person must be having more than Rs40,000 salary.
For those who are self employed individuals and non-professionals:
- Person should be 21 years old at the time for loan application.
- Person cannot be more than 65 years of age before the loan matures. If it happens, then the loan won’t be sanctioned.
- The person business organisation should have been more than operational for a minimum of 3 years.
- The business organisation should have declared the profits for the two consecutive years.
Required documents
For getting the mortgage loan against vacant land, the following is the answer:
- Application form of mortgage loan
- Getting the KYC documents that include the PAN card, identity proof, address proof and ownership proof.
For the salaried individuals:
- Having the last three months slips.
- The form 16.
- Proof for employment in case the present employer does not match with the form 16 information.
- Last six months bank statement reflects the existing EMI repayment and salary part.
For those who are self employed individuals and non-professionals:
- Proof of the business continuity by providing any of the necessary documents. Like shop establishment certificate/tax registration, VAT/ service tax/ GST registration as well.
- Proof for Firm constitution via submission or either of these documents like MOA, AOA, Partnership deed, GST registration certification, form 32 for getting the knowing the latest director.
- Audited with the financials for the last three years, and reports should be clear.
- The break up for all the secured and unsecured loans of the person.
- As on date list for directors and shareholding patterns.
Benefits
A mortgage loan against vacant land can be used to build a house, with a factory, a business unit, company expansion, purchase for the machinery for better production, debt consolidation or funding for other expenses.
After getting the loan, the company can develop their business with some new modern equipment. Using the fund accounts leads to getting the things in credit as well. Companies present over helps to get the amount most straightforwardly by showing their significant transaction and profit sheet.
Tax benefits
Certain tax benefits are present over there with whom people can enjoy the interest component of their EMIs. But this loan won’t be going to save your income tax of yours. So getting the loan will not going to change your tax amount.