I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.See all posts Frank Gogol
Loans for Land Purchase in India
Disclosure: Stilt is a lending company that offers personal loans that may be used to purchase land in India. Nonetheless, we are committed to recommending the best loan products to our readers when their needs are outside Stilt’s loan offerings.
According to The Economic Times, housing market prices in India were down significantly in 2019. And when prices are down, it’s a good time to but property.
But this isn’t new information. Many visa holders in the U.S. want to buy property back at home in India. There are many advantages to getting land back home, but financing the land can be a headache. If you are in the U.S. but you are buying property in India, you might be wondering what your options are to finance the land.
Below we take a look at loans for land purchases in India, including what they are and how you can get one!
Are there U.S. Loans for Land Purchase in India?
The short answer is yes. In the U.S., private lenders offer personal loans. A personal loan is an unsecured loan that may be used for nearly any purchase, including to buy land in India. Here are a few important terms to remember when it comes to personal loans:
- Principal Amount – The loan amount applied for without adding the interest.
- Interest Rate – The rate at which interest will accrue on your loan.
- Loan Term – The number of monthly repayments you’re required to make.
- Total Loan Cost – The principal amount plus the interest you pay over the loan term.
- Co-signer – Someone other than you (the borrower) who signs as security for the loan.
The terms and rates you can get for a loan for land purchase in India will vary from lender to lender. Generally, you can expect:
- Loan amounts between $1,000 and $100,000
- Repayment terms between 6 months and 7 years
- Interest rates between 5% and 20%
Your interest rate will depend on a couple of factors including your credit score and, in some cases, access to a cosigner.
Most personal loans in the U.S. are unsecured loans, which means you won’t need to supply collateral to secure the loan.
What About Loans for Agricultural Land in India?
Personal loans are not restricted in what they can be used for–as long as the borrower is approved, they are free to use their loan funds as they choose, even to buy agricultural land in India.
Can NRIs Get Loans for Land in India?
Non-Resident Indians (NRIs) in the U.S. can qualify for personal loans in the U.S. as long as they meet their chosen lender’s minimum requirement to borrow. Personal loans are not restricted in what they can be used for–as long as the borrower is approved, they are free to use their loan funds as they choose, even to buy land in India.
To learn more about loans for NRIs to buy property in India, click here.
How to Get a Loan to by Land in India with Stilt
At Stilt, we specialize in providing loans to immigrants (F-1, OPT, O-1, L-1, TN, J-1 visas, DACA and more) and permanent residents in the U.S. The process to take a loan with Stilt is simple:
- Submit an Application – Submit your completed loan application here. Within 24 hours you will receive feedback. Stilt will ask for more information or a verification call if necessary. Because we understand that not all new immigrants have U.S. credit scores, our risk model looks at things like current employment or employability, education, financial behavior, collections, and bankruptcies.
- Receive an Offer – After receiving and verification of your information, you can expect an offer from Stilt. They’ll send you a promissory note to sign. After you’ve signed, they’ll transfer the money and it will be available for you to use within 2 to 3 business days.
- Start Making Payments – Once you’ve received the money, the only thing left to do is pay. You can schedule your payments through your account. Setting up your autopay should only take a minute. You can also pay additional early payments without any prepayment penalties.
Why Buy Land in India?
Why do you need to buy land? Your needs will determine the reasons, but here are a couple of reasons why it could be a good idea to buy land in India.
Benefits of Buying Land in India
A Retirement Home Back-Up Plan – You are currently working and living in the U.S., but you were born in India or elsewhere. It is a wise decision to have a backup plan for your retirement. Staying in the U.S. is an option. But, times and political climates change. It’s good to know that you’ll have a plan B if your Visas don’t work out.
Property Value Growth – Buying property is an investment that can grow over time. The property value is obviously subject to the local property market. But as you are buying an asset, your asset can grow over time providing more value in the long run.
Build Something For Your Family – You are in the land of opportunity. The Dollars you make in the U.S. can help support your family in India. Use the spending power of the Dollar to create better opportunities for your loved ones back home. You can build them the house they need.
Creates Sources of Income – The land you buy can be used to generate income. You can rent out the property, set up commercial infrastructure or even a factory to supply products or services to the local people. Not only will the property be helping to pay for itself, but it can also help to fund your retirement one day.
As discussed above, there are numerous benefits to purchasing land in India while living in the U.S. But your individual financial situation and needs will dictate taking a loan is a good idea for you and what your access to credit will be. But if you want to take advantage and your finances are in order, your next step is to apply.