What Is The Difference Between a Plot Loan And Home Loan?

There is not much difference between home loans and plot loans are two different things, home loan is availed to buy residential property which is still in an under construction phase whereas plot loan is for residential land.

To understand it more clearly let’s get to know about the difference between loan types, here we are getting two types of loans one is a home loan and the other is a plot loan. A home loan is that availed to by residential built-up/ under-construction property, ready to move property or if you are self constructing. And the plot loan is defined as buying residential land.

Loan to Value

Under loan to value, the applicant will get the same amount of loan for a property, while is home loan. It is associate with residential collateral which is slight higher than the plot loan, specifically when it is under affordable range. So in home loans LTV many go higher up to 90% where as it is quite restricted up to 70% for plot loans.


Both loans have their own merits but the wisest thing is when you are opting for any of these two then you can go before complete analyze of it and of course it depends of your capabilities of paying loan. Loan tenure and EMI pay a significant role while applying for any loan. The tenure for a home loan can be up to 30 years while for a plot loan the maximum tenure is up to 15 years.

Tax Advantages

You can get a tax benefits interest for a home loan while there are no tax benefits available for a plots loan. But in case, tax dedication is available while the applicants take a loan against building construction on it.

Interest rate

Comparison to home loan plots loan has higher interest rates. Currently home loan interest rate is available 7.50 per cent per year, whereas plots loan is between 8-10% per year.

Plot Loan Interest Rate 2022

Location of property and purpose

Location of the property play essential role, when the property is planned in the best location then surely the demand of property will increase.

The above advantages are associated with plot loans and that is why it is the wisest choice to invest in a residential plot. If you are seeking the best option then you can consider DLF Plots Siruseri, Chennai. A fresh gated development that has arranged the best kind of lifestyle by allocating myriads of super-comfortable amenities and services and best location advantages.

DLF Plots Siruseri – Affordable Residential Plotted Development In Chennai

Its 85 acres residential gated development offers 5 different residential plot sizes stated from 600-2400 Sq.Ft. The complete development is just superbly arranged with modern services such as solar-powered street lights, 1000+ trees, and the opportunity of living surrounded by 4 natural lakes.

The view as well as the location of this residential plotted development is just outstanding and comes with an affordable price range @ 25 lacs* and that’s the appealing part of the project.


Although the plots and home loans are differ from each other but the application process for these loans are same. Applying such type of loan means strengthen your credit score and move the further step.


Q1. What are the benefits of plot loan?

Well, there are many benefits associated with a plot loans such as:

  • It is availed for the purchase of residential land
  • You can get attractive interest rates
  • Affordable repayment tenures
  • No pre-payment penalty
  • You can get low processing fees
  • Use of minimum documentation
  • Can get tax benefits under sections 24 and 80C of the Income Tax Act

Q2. What are the eligibility criteria for plot loans?

If you are applying for a plot loan then you need to fulfill the eligibility criteria and the listed are given below

  • Must be a resident of India
  • Should be a salaried or self-employed applicant
  • Should be between 18 -65 years of age

Q3. What are the documents required to apply for plot loans?

Listed below are some essential documents which the banks required during applying for a plot loan.

  • Duly filled application form
  • Applicant’s photograph
  • Proof of identity
  • Proof of residence
  • Most recent salary slips
  • Bank statements for the last 6 months
  • From 16
  • Cheque for loan processing fee

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