Guwahati, Aug. 6 -- Land is not cheap, and most people do not have the full amount sitting in a bank account. That is why land purchase loans exist. If you are eyeing a residential plot with plans to build on it later, or just as an investment, understanding how this kind of housing finance works will save you a lot of confusion down the line.

It is a loan for buying a residential plot. Not construction, not renovation, just the land itself.

A few things usually hold:

The plot needs to sit within an approved residential layout

How much you can borrow depends on the property's value, your income, and what the lender considers acceptable risk

You pay it back through EMIs over whatever tenure you and the lender settle on

A handful of l...