Can You Get a Home Loan to Buy a Plot in Maharashtra?
- Yes, you can borrow to buy a plot — but the product is usually a plot loan (land-purchase loan), which is a distinct product from the home loan you would take for a ready house or flat.
- Lenders typically fund 70-75% of the plot value as the loan-to-value (LTV), lower than the up to ~90% offered on home loans. The balance is your down payment.
- A plot loan on its own carries no income-tax deduction. The Section 80C principal deduction (up to ₹1.5 lakh) and Section 24(b) interest deduction (up to ₹2 lakh) apply only after you build a house on the plot and construction is completed — within 5 years of the loan being taken.
- To fund land and construction together, lenders offer a composite plot-plus-construction loan; this is the route that opens the tax benefits.
- Only a non-agricultural (NA) / residential plot with clear title and an approved layout is normally financeable; agricultural land is generally not funded as a housing loan.
Can you actually get a home loan to buy a plot in Maharashtra?
Yes — but what most lenders will give you for bare land is a plot loan (also called a land loan or land-purchase loan), not the standard home loan used to buy a built house. The phrase “home loan for a plot” is used loosely; in practice the two are separate products with different terms.
A home loan, strictly, finances a residential property that already exists or is under construction by a developer. A plot loan finances the purchase of a parcel of land on which you intend to build. Banks and housing-finance companies in Maharashtra offer plot loans for non-agricultural, residentially-zoned plots — but the loan-to-value, the tenure, and especially the tax treatment differ from a home loan. If your intention is to buy the land and build soon after, a third product — the composite plot-plus-construction loan — usually fits better, because it is the version that unlocks income-tax deductions.
How is a plot loan different from a home loan?
A plot loan funds only the land and gives no tax deduction unless you build; a home loan funds a house or flat and gives tax deductions from the outset. Plot loans also carry a lower LTV and, often, a shorter tenure.
The practical differences a buyer feels are in how much is funded, how long you get to repay, and whether the interest and principal reduce your taxable income. The table below summarises the typical position; exact numbers vary by lender and borrower profile.
| Feature | Plot / land loan | Home loan (built house) |
|---|---|---|
| What it funds | Purchase of land only | Ready or under-construction house/flat |
| Typical LTV (funded share) | ~70-75% of plot value | Up to ~90% (within RBI housing-loan limits) |
| Typical tenure | Often shorter (commonly up to ~15-20 yrs) | Up to ~30 years |
| Tax deduction on interest / principal | None, unless a house is built | Available from possession |
| Eligible land | NA / residential plot, approved layout | Residential property |
How much will a lender finance — what is the LTV on a plot loan?
Lenders commonly cap plot-loan LTV at around 70-75% of the plot value, so you should plan for a down payment of roughly 25-30% from your own funds, plus stamp duty and registration, which are not funded.
The Reserve Bank of India’s loan-to-value ceilings (90% for housing loans up to ₹30 lakh, 80% up to ₹75 lakh, 75% above ₹75 lakh) apply to housing loans. Standalone land loans are not governed by those same housing-loan ceilings and are set at each lender’s discretion, which is why plot-loan LTV is usually more conservative. The LTV is also applied to the lender’s assessed value or the ready-reckoner value, whichever is lower — not necessarily the price you negotiate — so the shortfall you fund yourself can be larger than it first appears.
Do you get income-tax benefits on a plot loan?
No — a plot loan taken purely to buy land gives no income-tax deduction during the holding period. Deductions become available only once you construct a house on the plot: interest up to ₹2 lakh a year under Section 24(b), and principal up to ₹1.5 lakh a year under Section 80C — and only if construction is completed within 5 years.
This is the single most misunderstood point about plot loans. Under the Income-tax Act, 1961, the Section 24(b) deduction is for interest on a loan borrowed for the purchase or construction of a house property; bare land is not house property. Section 80C allows the principal repayment deduction for a residential house. So until a dwelling exists on the plot and possession/completion happens, neither deduction is available. Once the house is built — with construction completed within five years of the end of the financial year in which the loan was taken — you can begin claiming, and pre-construction interest is generally allowed in five equal annual instalments from the year construction completes, within the overall limits. Because of this, buyers who intend to build usually take a composite loan from the start.
What is a composite (plot-plus-construction) loan?
A composite loan funds the land purchase and the subsequent house construction under one sanction, disbursed in stages — and because it is tied to building a house, it is the route through which Section 24(b) and Section 80C deductions eventually apply.
With a composite loan, the land portion is typically disbursed first, and the construction portion is released against progress of work, usually with a condition that construction begins within a set window (often 2-3 years) and completes within the lender’s timeline. If you take a pure plot loan and never build, you keep the land but forgo the tax benefits entirely, and you may face a higher interest rate than a comparable home loan. For a buyer whose plan is genuinely to construct, the composite structure aligns the loan, the build, and the tax position.
What do lenders check before approving a plot loan in Maharashtra?
Lenders generally finance only a non-agricultural, residentially-zoned plot with clear and marketable title, an approved layout, and defined access — and usually one within municipal or sanctioned-layout limits rather than raw agricultural land.
In practice, expect the lender to examine the 7/12 extract and land-use status, the NA order or deemed-NA position, the sanctioned layout and plot demarcation, the chain of title, and whether the layout is RERA-registered where applicable. Agricultural land, land without approved access, and parcels with tenure restrictions are commonly declined or funded only at a lower LTV. Getting the title documents in order before you apply materially improves both approval odds and the LTV offered.
What does it cost to borrow for a ₹60 lakh plot?
On a ₹60 lakh residential plot at 70% LTV, a lender funds about ₹42 lakh and you arrange roughly ₹18 lakh plus stamp duty and registration yourself — and you claim no tax deduction until a house stands on the plot.
Suppose you buy an NA plot assessed at ₹60 lakh and take a plot loan at 70% LTV:
| Item | Amount (illustrative) |
|---|---|
| Plot value (assessed/lower of) | ₹60,00,000 |
| Loan at 70% LTV | ₹42,00,000 |
| Your down payment (30%) | ₹18,00,000 |
| Stamp duty + registration (not funded) | Extra, on top |
| Tax deduction while it stays a plot | Nil |
| After you build (house completed within 5 yrs) | Interest up to ₹2L (Sec 24b) + principal up to ₹1.5L (Sec 80C) a year |
The figures are illustrative to show the mechanics, not a quote. Your actual LTV, rate, and eligibility depend on the lender and your profile, and stamp duty and registration in Maharashtra are separate costs the loan does not cover.
What does a plot loan not change?
A plot loan finances the land; it does not relax the diligence a plot purchase needs, and it does not convert agricultural land or waive stamp duty, registration, or NA requirements.
Whether or not you borrow, the title search, NA/zoning check, layout approval and RERA verification still have to be done, and stamp duty and registration are payable in full. The loan is a financing tool layered on top of a sound purchase — never a substitute for one.
FAQ
Can I get a home loan to buy a plot in Maharashtra?
You can borrow to buy a plot, but usually through a plot loan (land-purchase loan) rather than a standard home loan. Lenders typically fund 70-75% of the plot value, and the land must generally be a non-agricultural, residentially-zoned plot with clear title and an approved layout.
Do I get tax benefits on a plot loan?
Not on a plot loan by itself. The Section 80C principal deduction (up to ₹1.5 lakh) and the Section 24(b) interest deduction (up to ₹2 lakh) become available only after you build a house on the plot, with construction completed within 5 years. These deductions sit in the old tax regime.
How much down payment do I need for a plot loan?
Plan for roughly 25-30% of the plot value as your own contribution, since lenders commonly cap plot-loan LTV at about 70-75%. Stamp duty and registration are additional and are not funded by the loan.
What is a composite plot-plus-construction loan?
It is a single loan that funds both the land purchase and the house construction, disbursed in stages. Because it is tied to building a house, it is the route through which Section 24(b) and Section 80C deductions eventually apply.
Can I get a loan to buy agricultural land?
Generally not as a housing or plot loan. Lenders usually finance non-agricultural, residentially-zoned plots. Agricultural land is typically funded, if at all, through separate agri-loan products with different terms, and buying agricultural land in Maharashtra carries its own eligibility rules.
Does the loan cover stamp duty and registration?
No. LTV is applied to the plot value (or ready-reckoner value, whichever is lower), and stamp duty and registration charges are payable separately from your own funds, over and above the down payment.
Thinking of buying a plot?
Financing is one piece — the title, NA status, layout approval and access of the specific plot decide whether a lender will fund it at all. If you are evaluating a plot in the Karjat-Khopoli-Alibaug corridor, our team can walk through the records and financeability of that parcel with you.
Related reading
Costs, tax and budgeting
- Raigad plot stamp duty in 2026 — the cost the loan does not fund
- The true cost of buying a plot — down payment plus every other charge
- Capital gains tax on land — the tax position on an eventual sale
- Is there GST on a plot purchase? — the short answer for land buyers
- The one-time NA premium — a conversion cost before you build
- Ready reckoner rates for 2026 — the value LTV is actually applied to
What a lender checks: NA, title and RERA
- What is NA land? — the status a lender requires
- How to check a plot’s NA status — confirm before you apply
- NA plot vs agricultural land — why agri land is not financed as housing
- Deemed NA through plan approval — the post-2025 route lenders accept
- RERA verification for plotted land — what a lender wants to see
- What “RERA-approved” actually means — approval versus registration
- Right of way and access — the access a lender insists on
Land as an investment
- Plotted land vs a flat in the MMR — financing is part of the trade-off
- Plotted land vs an apartment — LTV and liquidity differences
- How liquid land really is — why plot financing thins the buyer pool
- Land banking near Mumbai — holding land without a short loan
Where to buy
- The Khopoli-Pali road (SH-93) guide — our core corridor, survey by survey
- Karjat land prices in 2026 — a popular plotted belt
- What Lords of the Lands builds — sanctioned, financeable layouts
Citations and sources
Income-tax Act, 1961 — Section 24(b) (interest on borrowed capital for house property) and Section 80C (deduction for principal repayment of a residential house). Reserve Bank of India loan-to-value norms for housing loans. Lender product terms (BankBazaar, Aditya Birla Capital, Tata Capital, PNB Housing Finance plot-loan guides). This is general information, not tax or legal advice — consult a qualified chartered accountant and your lender before borrowing or filing.
