5 Things to Know Before Applying for Loan Against Land

When considering applying for a loan against land with Capified, it’s essential to be well-informed to make the best financial decision. Here are five key things to know:

1. Eligibility Criteria

Before applying for a loan against land, ensure you meet Capified’s eligibility criteria. Typically, these include:

  • Ownership of the Land: You must have clear and marketable title deeds.
  • Type of Land: Both residential and commercial plots are usually eligible, but agricultural land might have restrictions.
  • Age and Income: Borrowers should be within the age range of 21 to 65 years and have a stable income source.

2. Loan Amount and Valuation

Capified will assess the value of your land to determine the loan amount, which generally ranges from 50% to 70% of the land’s current market value. It’s crucial to:

  • Get an Accurate Valuation: The lender will conduct a valuation, but having an independent assessment can help you understand the value and set realistic expectations.
  • Understand LTV Ratio: Loan-to-Value (LTV) ratio is critical. A lower LTV means a smaller loan but could also result in better interest rates and terms.

3. Interest Rates and Charges

Interest rates on loans against land can vary significantly. Here’s what to look out for:

  • Type of Interest Rate: Capified offers fixed or floating interest rates. Fixed rates remain constant throughout the loan term, while floating rates can change based on market conditions.
  • Additional Charges: Be aware of processing fees, legal charges, and prepayment penalties. Understanding these costs upfront will help you avoid unexpected expenses.

4. Repayment Terms

Understanding the repayment terms is crucial for financial planning:

  • Tenure: Capified typically offers flexible repayment tenures ranging from 5 to 15 years. Choose a tenure that aligns with your financial capability and goals.
  • EMI Calculations: Use Capified’s EMI calculator to estimate your monthly installments. This helps in planning your finances and ensures that you can manage repayments without straining your budget.

5. Documentation and Legal Requirements

Proper documentation is essential for a smooth application process. Capified requires:

  • KYC Documents: Proof of identity, address, and income.
  • Land Documents: Title deed, land tax receipts, and an encumbrance certificate.
  • Other Financial Documents: Bank statements, IT returns, and proof of business or employment.


Applying for a loan against land with Capified can be a strategic way to leverage your property for financial needs. However, being aware of the eligibility criteria, loan amount and valuation process, interest rates and charges, repayment terms, and necessary documentation can help you make an informed decision. Ensure you conduct thorough research and perhaps seek professional advice to navigate this financial commitment effectively.

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