Farmer people who depend only on agriculture. Sometimes money is not needed due to essential works and sometimes due to crop failure too much loss has to be suffered. Due to the variety of tasks of the farmers, it is very difficult to adjust the money when there is a need for money. In such a situation, farmers can get loan on their land.
Many people belonging to the farmer family borrow money from here and there. But sometimes the loan money is not managed. In such a situation, taking a loan on your land is considered a better solution. Because after taking the loan, gradually that loan can be paid as monthly premium and the interest rate of the loan taken by the bank is also very low.
However, on taking a loan by banks, many types of documents and legal action have to be completed and some processing charges are also collected from you while taking the loan.
Today we will tell you on the ground through this article. Loan How to take What are the documents required to take loan against land? What will be the interest rate on taking loan against land? What is land loan? Will give information about etc.
What is land loan?
If a person is a farmer and wants to take a loan by keeping his land as security. So he can apply for this loan from any bank. That Bank I have his account open. Loan taken on land is called land loan. During which the bank takes some of the land papers as security.
Also know –
If due to any reason you are not able to repay that loan. So Bank Your property is seized. when you take a loan. So its information is given in the application form. If the loan is not repaid for any reason, the bank will be entitled to seize the property. The bank provides money to the farmers at very low interest. Which has to be paid back in the form of monthly installment.
Earth Loan Under the farmer to his land Bank Have to mortgage it. This does not mean that the farmer cannot cultivate that land. After taking the land loan, the farmer can easily cultivate his land. If he does not pay the loan. So after the bank seizes that land, that farmer cannot cultivate that land.
How to take loan on land?
Required criteria for taking loan against land?
When any person takes loan on his land. So for that some criteria are told by the bank according to the guidelines of RBI. On the basis of those criteria, the person gets the loan, which is as follows.
- As per RBI guidelines, the person applying for the loan should be minimum 24 years of age and the maximum age of the person should be less than 65 years. Only then the person will be considered eligible to take a loan on the land.
- To take loan on land, that person must have own property like land plot etc. Because the bank only keeps your land papers as a mortgage. Land documents that the bank keeps with them can be of many types. Such as Jamabandi of land, agreement of plot, registry, mutation copy etc.
- It is necessary for the loan applicant to have any other income other than agriculture. Because according to the RBI guideline, it has been told that there may be losses in agriculture many times. In such a situation, it is necessary for the applicant to have another income to cover the loan. Loans are approved only on the basis of income other than agriculture.
- If the land on which loan is being taken. That land contains the name of more than one person. So it is necessary to sign the documents and application form of all those persons.
- To take loan against land, if a person is an income tax payer. So while taking a loan, you must provide income tax information.
- You can use the loan money received on land only for certain works. For example, to build a house on the land, etc., to build a sports stadium on the land, etc.
What is the maximum loan that can be taken on land?
According to the guidelines of Reserve Bank of India, no bank can give loan on land more than 90% of the market value of the land. What is the value of the land?
90% of it is given as loan. The value of the land depends on the area. The loan is approached on the basis of the value of the land.
It is illegal to give more than 90% loan according to the guidelines of the Reserve Bank. For example, if the value of land of a person is 10000000 rupees. So he can get an amount of ₹ 9000000 by the bank as a loan.
What is the interest rate of loan against land?
If you take loan on land. So a fixed interest rate is provided by the bank. Interest is charged on your loan amount based on the same interest rate. There is also a difference in the interest rate according to each bank’s own rules.
Along with this, depending on the bank loan amount and the repayment period, the interest rate is also determined in different ways. when you take a loan. So who decides any bank interest rate based on its tenure.
To find out the interest rate for taking loan on land, check the bank from which you want to take the loan. You can find out by visiting the branch of that bank. Apart from this, interest rate information can also be obtained on the helpline number of that bank.
Information is also available on the official website of that bank. Apart from this, if we talk about the minimum interest rate, then the interest rate of State Bank of India is 8.5%. Which is very less as compared to other banks. And the lowest interest rate of land loan is considered.
What is the maximum tenure one can get for loan against land?
After taking a loan on land, the loan repayment period is different in different banks. But all the criteria are fulfilled as per the guidelines of Reserve Bank of India.
So Rohan’s payout period of maximum 20 years can be achieved. But not all applicants get such a long time. Because all kinds of documents are required for these and the loan tenure is determined based on your credit score.
Documents required to take loan against land?
If you want to take loan on land. So for that you have to upload many types of documents along with the loan application form given by the bank. Apart from this, many are also necessary in the form of security. which is as follows.
- passport size photo
- your identity card
- Address proof of the applicant
- Required documents related to land
- loan application form
The bank takes the necessary documents related to the land from you as security.
How to apply for loan against land?
Taking a loan on land is not very difficult, just here many types of steps have to be followed to take loan on land. On that basis, you can get the loan approved on the land and get it transferred to your bank account.
Now, to get this loan, which stage has to be passed, below we have told step by step, by following which you can easily get loan on land and fulfill your needs, then let’s know. –
- First of all, you have to collect all your necessary documents to take loan against land. Collect the above mentioned documents.
- The land on which the loan is being taken. The names of all the children are associated with that land. Collect the documents of those persons also.
- Now go to your nearest bank branch in which you already have an account. Go there and get complete information about the loan.
- After getting complete information about the loan by the bank employee, the bank employee gives you an application form. That form has to be filled completely.
- After this, there is a sign mark at the bottom of that application form. There sign all those persons whose name is there in that land. The land on which the loan is being taken.
- After the application form is completely filled and signed, all the documents have to be attached with the application form.
- Submit the documents and application form to the bank employee. The bank employee inspects the application form and all those documents.
- After the bank employee inspects the document, he submits the online form and reviews your loan for approval.
- After applying the loan application form in the review, that loan is passed by the Reserve Bank of India and the head employees of that bank.
- It can take around a week or up to 10 days for a loan to be cleared.
- After the loan is approved, the loan amount is transferred to your account by the bank.
Mainly those who are farmers, their land is everything because they do not have any other means of income, but whatever money they get from the crops grown on their land, they do the maintenance of the house and other works. .
But it becomes difficult for any farmer to build a house or get a daughter married because the amount of money is not collected from the crops grown on the land, so that he is not able to fulfill his good house, daughter’s marriage, or other needs.
Then only this option is left in front of him to take loan on land, but how to take loan on land, what should be the qualification for this. As there is no information, due to which he does not get the benefit of it, just keeping this in mind, today we have explained this important information in detail through our post.
I hope that you will understand the given information, and you must have got proper information, if you face any problem in taking loan on land, then you can ask us by commenting.