plots in Monthly installment schemes in India without a bank loan

How to buy plots in Monthly installment schemes in India without a bank loan?

Land is a finite resource, meaning it cannot be manufactured or increased. As the population grows and demand for land increases for residential, commercial, or agricultural purposes, the value of land tends to appreciate over time. This appreciation can result in significant returns on investment.

Real estate investment is seen as the safest and must to do investment option in Indian families , either they invest in apartments for rental yields or invest in plots for long term capital appreciation. For those with a long-term investment horizon, land can be an excellent option. Over time, the land can significantly increase in value, especially if it’s in the path of development or if there’s a future use for it that can increase its demand.

Getting into land investment is really easy. You can enter the segment with just 10 to 15 lakhs or with the help of a bank loan. All the nationalised banks offer upto 90% of the land value as loan for the approved plots and interest rate varies between 8 and 10%.

Investors may be surprised to learn that they can now purchase plots in a monthly installment scheme directly from the seller , without incurring any interest.

What is EMI plots / Monthly installment scheme plots?

A monthly installment scheme for plots is a financial arrangement designed to make the purchase of land more accessible and affordable for buyers. Under this scheme, instead of paying the total price of the plot upfront, the buyer agrees to pay the amount in smaller, more manageable monthly installments over a specified period to the direct seller without going for bank loan. You don’t need CIBIL score to buy EMI Plots from sellers.

How can you find these type of plots ?

This type of plots scheme is not a predominant one , only few developers sell Monthly installment scheme plots that too in developing areas mostly in the suburbs. In Chennai you can find such plots in the outskirts like Thiruvallur, Sriperumbudur, Oragadam and Kancheepuram.

You can find these kinds of plots on online property portals.

What is the maximum payback Period ?

The payback period is mostly decided by the seller , mostly it varies between 24 and 36 months and the monthly emi amount depends on the plot you are choosing and the down payment you make. Few developers offer zero down payment options as well. We suggest you to pay at least 50% down payment and pay the rest in the Equated Monthly Installment option. By paying a considerable down payment you can negotiate better on the sqft price.

What are all the factors that should be taken into account?

This method is introduced by the developer to make the real estate investment affordable for everyone and to liquidate the plots in outskirts. Buyers have to be very careful while purchasing the plots.

  1. Make sure the contract is clearly outlined and documented .
  2. Make sure the plot is approved by the respective local authorities and don’t buy unapproved plots.
  3. Location does matter , though it is in the suburbs . Your land should appreciate atleast 30 – 40% in 10 to 15 years. Do some local market research.

Compared to other types of real estate investments, such as residential or commercial buildings, vacant land typically requires lower maintenance and has fewer carrying costs.

EMI plot is an excellent opportunity for starters to invest in real estate at low investment. Land is often considered a good hedge against inflation. As the cost of living increases, so too does the value of real estate. Investing in land can protect your wealth from erosion due to inflation.

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