Lower Tenure: ? A land loans has fairly a shorter tenure of up to? ?15? ?years, ? ?which isn’t the situation in mortgage loans, ? ?which is followed closely by a longer tenure of? ?30? ?years. ? ?Therefore, ? ?the EMI when you look at the full instance of that loan for plot purchase is more than compared to regular mortgage loans. ? ?The tenure for the land loan additionally depends upon the chronilogical age of the debtor, ? ?repayment capacity, ? ?etc.
Tax Benefits: mortgage loans be eligible for an income tax deduction on re payment of this major quantity under Section? ?80C of the tax work as well whilst the interest component under area? ?24?(?b?) ?of the tax Act. ? ?On one other hand, ? ?tax benefits on a land loans aren’t available. ? ?However, ? ?borrowers could claim an income tax deduction on in the event that home is constructed for a plot bought by the debtor. ? A tax can be claimed by ?A borrower deduction up against the loan amount taken for construction, ? ?after the conclusion of construction regarding the plot.
Prepayment Penalty: drifting price loans sanctioned to specific borrowers are free of the prepayment penalty if your debtor would like to foreclose the mortgage. ? ?However, ? ?a land loan like a mortgage could attract prepayment fees of? ?2? ?to? ?4%? ?of the prepaid amount if the non-individual debtor has brought it. ? The loan should be read by ?A borrower contract carefully and explain the foreclosure charges of this loan before signing the contract. ?