Land Loan Calculator – EMI Calculator for Plot Purchase (HDFC, SBI)
The land loan calculator helps you estimate EMI (Equated Monthly Installment), total interest, and repayment schedule for plot purchase loans. Calculate monthly payments for HDFC land loans, SBI plot loans, or any bank's land financing with customizable down payment, interest rates (8-12% typical in India), and loan tenure. This comprehensive land loan EMI calculator provides accurate projections based on current 2025 interest rates from major Indian banks including HDFC Bank and State Bank of India.
🏞️ Land Loan EMI Calculator
Calculate your plot purchase loan payments
Total cost of land purchase
Or enter %: %
Amount to be financed
Typical: 8-11% for plot loans
Maximum 15 years for plot loans
Typically 0.5-1.5% of loan amount
Your Land Loan Calculation
Monthly EMI
₹0
Total Interest
₹0
Total Amount Payable
₹0
Processing Fee
₹0
Loan Breakdown
| Item | Amount |
| Land Cost | ₹0 |
| Down Payment | ₹0 |
| Loan Amount | ₹0 |
| Interest Rate | 0% |
| Loan Tenure | 0 years |
| Monthly EMI | ₹0 |
| Principal Repayment | ₹0 |
| Total Interest | ₹0 |
| Total Payable | ₹0 |
Year-Wise Repayment Schedule
What is a Land Loan (Plot Loan)?
A land loan, also called a plot loan or plot purchase loan, is a secured loan specifically for purchasing residential or commercial land/plots. Unlike home loans that finance ready-to-move-in properties, land loans help you buy vacant land where you plan to construct a house or building in the future. Major Indian banks like HDFC Bank, SBI, ICICI Bank, and others offer land loans at interest rates ranging from 8-12% per annum with repayment tenures up to 15 years.
Key Features of Land Loans:
- Purpose: Purchase of residential or commercial plot/land
- Loan Amount: Up to 80-85% of plot value (varies by bank)
- Interest Rates: 8-12% p.a. (typically 0.5-2% higher than home loans)
- Tenure: Usually 10-15 years maximum
- Down Payment: Minimum 15-20% of plot cost required
- Collateral: The purchased land serves as security
Land Loan EMI Calculation Formula
Understanding the EMI calculation helps you plan your finances effectively:
Standard EMI Formula
EMI Calculation Formula:
EMI = [P × r × (1+r)^n] / [(1+r)^n - 1]
Where:
- EMI = Equated Monthly Installment
- P = Principal loan amount
- r = Monthly interest rate (Annual Rate ÷ 12 ÷ 100)
- n = Total number of monthly installments (Years × 12)
Total Interest Calculation
Total Interest Paid:
Total Interest = (EMI × n) - P
Processing Fee Calculation
Processing Fee Amount:
Processing Fee = Loan Amount × (Fee % ÷ 100)
Example Land Loan Calculation:
Scenario: Plot Cost = ₹20,00,000 | Down Payment = ₹4,00,000 (20%) | Loan = ₹16,00,000
Interest Rate: 8.75% p.a. | Tenure: 10 years (120 months)
Step 1: Monthly rate = 8.75 ÷ 12 ÷ 100 = 0.007292
Step 2: EMI = [16,00,000 × 0.007292 × (1.007292)^120] / [(1.007292)^120 - 1]
Result: Monthly EMI = ₹19,946
Total Payment: ₹19,946 × 120 = ₹23,93,520
Total Interest: ₹23,93,520 - ₹16,00,000 = ₹7,93,520
Processing Fee: ₹16,00,000 × 0.5% = ₹8,000
HDFC Land Loan Calculator & Interest Rates
HDFC Bank offers plot loans under their home loan category with competitive interest rates and flexible terms:
HDFC Plot Loan Features (2025)
- Interest Rates: Starting from 8.70% p.a. to 9.95% p.a. (as of November 2025)
- Loan Amount: Up to 80% of plot value (90% in special cases)
- Maximum Tenure: Up to 15 years for plot loans
- Processing Fee: Up to 0.50% of loan amount (minimum ₹3,300)
- Prepayment: No charges on floating rate loans
- Minimum Age: 21 years (salaried) / 25 years (self-employed)
- Maximum Age: 65 years at loan maturity
HDFC Plot Loan Interest Rate Structure
| Credit Score | Interest Rate | Loan Amount | Funding % |
|---|---|---|---|
| ≥800 (Excellent) | 7.60% - 8.70% | Up to ₹30 Lakh | 90% |
| 780-799 (Very Good) | 7.65% - 8.75% | ₹30L - ₹75L | 88% |
| 750-779 (Good) | 7.75% - 8.95% | Above ₹75 Lakh | 85% |
| Below 750 | 8.95% - 9.95% | Varies | 80% |
HDFC EMI Calculation Example:
Plot Cost: ₹25,00,000 | Down Payment: ₹5,00,000 | Loan: ₹20,00,000 at 8.75% for 15 years
Monthly EMI = ₹19,932 | Total Interest = ₹15,87,760 | Total Payable = ₹35,87,760
SBI Land Loan EMI Calculator & Rates
State Bank of India (SBI) provides plot purchase loans with attractive interest rates and extensive branch network:
SBI Plot Loan Features (2025)
- Interest Rates: 8.50% p.a. to 9.55% p.a. (linked to repo rate)
- Loan Amount: Minimum ₹1 lakh to maximum ₹2 crore (up to 85% of plot value)
- Repayment Period: Up to 15 years maximum
- Processing Fee: 0.50% of loan amount + GST
- Prepayment: Nil for floating rate, 2-3% for fixed rate
- Age Criteria: 18 to 70 years
- Income Requirement: Minimum ₹3 lakh per annum (salaried)
SBI Land Loan Interest Rates by Category
| Loan Amount | Salaried | Self-Employed | Women Borrowers |
|---|---|---|---|
| Up to ₹30 Lakh | 8.50% - 9.05% | 8.55% - 9.15% | 8.45% - 9.00% |
| ₹30L - ₹75L | 8.55% - 9.15% | 8.60% - 9.25% | 8.50% - 9.10% |
| Above ₹75 Lakh | 8.75% - 9.40% | 8.85% - 9.55% | 8.70% - 9.35% |
SBI EMI Calculation Example:
Plot Cost: ₹30,00,000 | Down Payment: ₹6,00,000 | Loan: ₹24,00,000 at 9.05% for 12 years
Monthly EMI = ₹25,862 | Total Interest = ₹13,23,776 | Total Payable = ₹37,23,776
Land Loan Eligibility Criteria
To qualify for a land loan in India, you must meet these requirements:
Basic Eligibility Parameters
- Age: Minimum 21-25 years, maximum 60-70 years at loan maturity
- Income: Minimum ₹3-5 lakh per annum (varies by bank and loan amount)
- Employment: Salaried (2+ years work experience) or Self-employed (3+ years business)
- Credit Score: Minimum 650-700 CIBIL score (higher scores get better rates)
- Existing Loans: Debt-to-income ratio should be below 50%
- Property Type: Residential or commercial plot with clear title
Plot/Land Requirements
- Clear Title: Land must have clear, marketable title with no disputes
- Approved Layout: Plot should be in DTCP/municipal authority approved layout
- Location: Within bank's serviceable area (typically municipal limits)
- Purpose: For residential or commercial construction only
- Documentation: Sale deed, encumbrance certificate, property tax receipts, approved plan
Required Documents
- Identity Proof: Aadhaar card, PAN card, passport, voter ID
- Address Proof: Utility bills, rental agreement, Aadhaar card
- Income Proof: Salary slips (6 months), Form 16, ITR (2-3 years), bank statements
- Property Documents: Sale agreement, title deed, encumbrance certificate, approved layout plan
- Photographs: Passport-size photos
Land Loan vs Home Loan Comparison
| Feature | Land Loan (Plot Loan) | Home Loan |
|---|---|---|
| Purpose | Purchase of vacant land/plot | Purchase of ready property or under-construction |
| Interest Rates | Higher (8-12% typical) | Lower (8-10% typical) |
| Loan-to-Value | Up to 80-85% of plot value | Up to 90% of property value |
| Maximum Tenure | 10-15 years | Up to 30 years |
| Tax Benefits | Limited (only after construction starts) | Full benefits under Section 80C & 24(b) |
| Processing Time | Longer (extensive documentation) | Faster (standardized process) |
| Down Payment | 15-20% minimum | 10-20% typical |
Tax Benefits on Land Loans
Tax benefits on land loans are limited compared to home loans:
During Plot Ownership (No Construction)
- Principal Repayment: No deduction available under Section 80C
- Interest Payment: No deduction available under Section 24(b)
- Reason: Tax benefits only apply after construction of house is completed
After Construction Completion
- Section 80C: Up to ₹1.5 lakh deduction on principal repayment annually
- Section 24(b): Up to ₹2 lakh deduction on interest paid (self-occupied property)
- Pre-Construction Interest: Can claim 1/5th of interest paid before construction completion over 5 years
- Condition: Construction must be completed within 3 years of loan sanction
⚠️ Important Tax Consideration: If you take a land loan and don't construct within 3 years, you lose eligibility for pre-construction interest deduction. Plan construction timeline carefully to maximize tax benefits. Consult a tax advisor for specific guidance on your situation.
Advantages of Land Loans
- Property Ownership: Own land in desired location before prices increase
- Flexible Construction: Build at your own pace without construction loan pressure
- Future Appreciation: Land typically appreciates faster than built-up property
- Lower Initial Cost: Plots often cheaper than ready properties per square foot
- Custom Design: Build house exactly as you envision without compromises
- Investment Option: Hold land as long-term investment asset
- Collateral Value: Land can serve as collateral for future loans
Disadvantages and Challenges
- Higher Interest Rates: 0.5-2% higher than home loans
- Shorter Tenure: 15 years maximum vs 30 years for home loans (higher EMI)
- Limited Tax Benefits: No immediate tax deductions until construction
- Lower LTV: Need 15-20% down payment (home loans offer 10%)
- Documentation Complex: Extensive title verification required
- Construction Costs: Need separate arrangement for building construction
- Holding Cost: Property tax and maintenance even without house
- Liquidity Risk: Land harder to sell quickly than ready property
Frequently Asked Questions
How is land loan EMI calculated?
Land loan EMI is calculated using the standard loan formula: EMI = [P × r × (1+r)^n] / [(1+r)^n - 1], where P is principal loan amount, r is monthly interest rate (annual rate ÷ 12 ÷ 100), and n is total number of monthly installments. Example: ₹16 lakh loan at 8.75% for 10 years gives monthly EMI of ₹19,946. Total interest = (₹19,946 × 120) - ₹16,00,000 = ₹7,93,520. The formula ensures equal monthly payments covering both principal and interest throughout the loan tenure.
What is the interest rate for HDFC land loan?
HDFC Bank land loan (plot loan) interest rates range from 8.70% p.a. to 9.95% p.a. as of November 2025. Your specific rate depends on credit score: excellent credit (800+) gets 7.60-8.70%, good credit (750-779) gets 7.75-8.95%, and below 750 gets 8.95-9.95%. Rates are also influenced by loan amount, tenure, employment type (salaried vs self-employed), and relationship with HDFC Bank. Women borrowers may get 0.05% concession. HDFC offers up to 90% financing on plot value for high credit scores, with maximum 15-year tenure.
What is the maximum loan tenure for land loans?
Maximum land loan tenure is typically 10-15 years with most Indian banks including HDFC, SBI, and ICICI. This is shorter than home loans (up to 30 years) because land loans are considered higher risk without existing structure. Tenure also depends on borrower's age—loan must be repaid before retirement (typically 60-65 years). Shorter tenure means higher EMI but lower total interest paid. Example: ₹20 lakh at 9% for 10 years = ₹25,332 EMI vs 15 years = ₹20,277 EMI, but 10-year tenure saves ₹4.5 lakh in interest.
Can I get 100% finance for land purchase?
No, 100% financing is not available for land purchase in India. Banks typically finance 70-85% of plot value (Loan-to-Value ratio), requiring 15-30% down payment from your own funds. HDFC offers up to 90% in select cases for excellent credit scores (800+), but this is rare. The mandatory down payment reduces bank's risk since vacant land is harder to liquidate than built property. Lower LTV also ensures borrower commitment. If you need higher financing, consider: improving credit score for better LTV, co-applicant with good income, or pledging additional collateral.
Is land loan EMI tax deductible?
Land loan EMI is NOT immediately tax deductible. Tax benefits under Section 80C (principal repayment) and Section 24(b) (interest payment) only apply after you construct a house on the plot. Once construction is completed: you can claim up to ₹1.5 lakh annually on principal (80C) and up to ₹2 lakh on interest (24b). Pre-construction interest can be claimed as 1/5th annually over 5 years after completion. Important: Construction must finish within 3 years of loan sanction to claim pre-construction interest. This makes land loans less tax-efficient than home loans until you build the house.
What documents are required for land loan?
Required documents for land loan: 1) Identity proof—Aadhaar, PAN, passport, voter ID, 2) Address proof—utility bills, rental agreement, Aadhaar, 3) Income proof—6 months salary slips, Form 16, 2-3 years ITR, bank statements (6 months), 4) Property documents—sale agreement, title deed, encumbrance certificate (13-30 years), approved layout plan, property tax receipts, no-objection certificate from development authority, 5) Photographs—passport size, 6) Employment proof—employer certificate, business registration (self-employed). Bank may request additional documents: valuation report, site inspection report, legal opinion on title.
Which bank offers lowest land loan interest rate?
As of November 2025, HDFC Bank offers competitive land loan rates starting from 8.70% p.a. (for excellent credit 800+), while SBI offers from 8.50% p.a. for salaried borrowers. However, "lowest rate" varies by individual profile: credit score, income, loan amount, and relationship with bank. Best approach: apply to 3-4 banks (HDFC, SBI, ICICI, Axis, Bank of Baroda) and compare actual quotes. Consider beyond interest rate: processing fees (0.5-1.5%), prepayment charges, loan tenure flexibility, and customer service. Women borrowers often get 0.05-0.10% concession. Negotiate using competing offers to get best deal.
Tips for Getting Best Land Loan Deal
Maximize your chances of approval and minimize costs:
Before Applying
- Improve Credit Score: Get CIBIL score above 750 for best rates (save 1-2% interest)
- Verify Plot Documents: Ensure clear title with encumbrance certificate and approved layout
- Compare Multiple Banks: Get quotes from 3-4 lenders before deciding
- Increase Down Payment: Higher down payment (25-30%) improves terms and reduces EMI
- Co-Applicant: Add spouse or parent as co-applicant to boost eligibility
During Application
- Complete Documentation: Submit all documents upfront to avoid delays
- Professional Valuation: Get independent property valuation to support loan amount
- Negotiate Rate: Use competing offers to negotiate 0.10-0.25% lower rate
- Choose Shorter Tenure: If affordable, shorter tenure saves significant interest
- Read Fine Print: Understand prepayment charges, processing fees, and hidden costs