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28 OCTOBER, 2021

If you own a plot of land, you can construct your house or factory your way. However, it can also come to your aid when you are stuck in a financial crisis. A loan against land is a convenient source of financing your dreams. Read on to know more.

What Is a Loan Against Land?

A loan against land is a secured loan where you can borrow funds from a bank or financial institution by using your plot of land as collateral. You can use the loan amount for purposes like building your dream home or an industrial plant or factory. A loan against land is a form of loan against property. Here are a few things you must know about loans against land.

Eligibility Criteria

If the applicant is a salaried individual:

  • The minimum monthly income should be Rs 40,000 and above.
  • Should be between the age bracket of 18 to 60 years.
  • Should be a graduate if employed with a private limited company or partnership firm.

If the applicant is a self-employed or a professional individual:

  • Annual income should be minimum Rs 1.80 lakhs and above.
  • Should be at least 21 years old while applying and less than 65 years old at the time of maturity.
  • Applicant’s company/organisation/business should be operational for the last three years and should have made consistent profits for the last two years.

Loan Against Property Documents

The following is the list of documents you need to avail a loan against land:

Identity proof (any one of the following)

  • Driving License
  • Passport
  • Voter ID
  • Aadhaar card


Address proof (any one of the following)

  • Address proof for Both Office and Residence;
  • Passport
  • Driving License
  • Voter ID
  • Utility Bill


Ownership proof (any one of the following)

  • Agreement Copy
  • Electricity Bill
  • Maintenance Bill
  • Municipal tax bill


Business documents (any one of the following)

  • Shop and Establishment certificate
  • Tax registrations
  • MOA
  • AOA
  • Partnership Deed


Income Documents

For self-employed applicant:

  • Audited financial documents for the last three years
  • Last three years Audit Report
  • Bank statement for last one year
  • Income tax return for last three years


For salaried applicant:

  • Salary slips for the last three months
  • Form 16
  • Employment proof
  • Bank statement for last six months.



Ensure to opt for tenure carefully as it helps determine your Equated Monthly Installments. A loan against land is available for a tenure of 15 years. Choose a tenure that helps you repay the loan comfortably. You can use a loan against property EMI calculator to determine your affordability. You can opt for a longer tenure to get smaller EMIs. However, it would increase the interest and cost of borrowing. On the other hand, choosing a shorter tenure would be better if you can pay higher EMIs without going over your budget.

You can fulfil your dreams by availing a loan against land. Lenders usually approve a loan amount of up to 50-75% of the land value, depending on your credibility and eligibility. Although, make sure to check your affordability before availing the loan amount. It would be best to check your income and expenses to avail a loan that fits into your monthly budget.

So, don’t wait now. Apply for loan against property, today.


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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.