A land (plot) loan finances the purchase of an approved residential plot — either on its own or paired with a construction plan. It's a narrower category than a home loan: fewer lenders serve NRIs for plot purchase specifically, LTV runs lower, tenures are shorter, and agricultural land is off the table entirely.
NRIs buying an approved residential plot, with or without an immediate construction plan.
Up to 70% of plot value — lower than a home loan, since raw land is riskier collateral.
10–20 years depending on lender — noticeably shorter than a 30-year home loan.
Most lenders require construction to begin within 2–3 years of disbursement.
Plots within municipal or development-authority limits, with clear title, are the core product.
Many lenders offer a composite loan covering both the plot and the building, often with a longer combined tenure.
Agricultural land is excluded across virtually all lenders. Plots outside approved development limits are also typically declined.
Generally 21–65 years at maturity, income-assessed the same way as a home loan applicant.
Confirmation the plot sits within an approved layout — from a development authority, housing board, or municipal body.
A declared intent (and often a documented plan) to begin construction within the lender's required window.
Pulled from each lender's own published page, September 2026 — the published figure, not a number confirmed for your specific profile.
| Lender | Indicative rate* | Max LTV* | Max tenure* |
|---|---|---|---|
| ICICI Bank | 8.50% onwards | Up to 70% | 20 years |
| HDFC Bank | 8.50% onwards | Not published | 20 years |
| SBI (Realty scheme) | 9.40% – 9.85% | Not published | 10 years |
SBI's plot loan runs under its separate "SBI Realty" scheme, with a notably shorter tenure than ICICI or HDFC — confirm current NRI-specific terms directly, since land loans vary more by branch/state policy than published cards suggest. PNB Housing Finance and LIC Housing Finance also serve this category but don't publish a clear enough rate to include here.
Verify the plot sits within an approved layout before applying — this is the first thing a lender checks.
State your construction timeline; some lenders require a basic plan or architect's estimate upfront.
Lender values the plot and issues a sanction letter specifying loan amount, rate and tenure.
Funds released toward the plot purchase; if construction-linked, further disbursement follows as building progresses.
No — NRIs are generally not permitted to purchase agricultural land, plantation property or farmhouses in India under FEMA rules, and no lender finances this category. This page covers approved residential plots only.
Most lenders require construction to begin within 2–3 years of disbursement. Missing this window can mean the loan is reclassified — typically converted to a loan-against-property structure at different terms, or the lender may take other contractual action. Confirm the specific consequence with your lender.
No — this is one of the more restricted categories. Fewer lenders serve NRIs here than for home loans, so confirm availability early rather than assuming your preferred bank covers it.
Yes, several lenders offer a composite plot-plus-construction loan, which can mean a longer combined tenure than a standalone plot loan — worth asking about specifically if you plan to build soon after purchase.
Author: Himanshu Gupta · Reviewer: Sachin Gupta · Last verified: September 2026.