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Differences Between a Home Loan and a Land Loan

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Not many know that a bank offers home loans for either apartments or for purchase of land and building a house in it. But many of us have the habit of investing in land since it appreciates significantly with time. It is the Indian way to invest money more in Land and Gold than in other investment venues! So, how does one get a loan for buying just a plot of land as an investment? Land loans are the answer. In general most of the terms and condition of the loan and the repayment modes are very much similar to that of a home loan but there does exist, a few minuscule differences which could be left out in the fine print. Home loans can opt only when the purchase is for a house that has been constructed, or is under construction or is guaranteed to be constructed in the near future. The third condition is the tricky one where banks offer a home loan that requires the person who gets the loan to start construction of a house in the land bought with the loan amount within a particular peri