Loans secured by land: half a kingdom for a loan

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Land-secured loans are as diverse as the many home mortgage programs. Hundreds of banks offer their own way of solving financial difficulties for clients who own land. The specific borrowing parameters depend on the selected bank and loan program, the terms of the expected repayment of obligations and the required loan amount. At the same time, you can manage to attach a wide variety of plots for both individual housing construction or the construction of commercial facilities, and agricultural land. Let's look at current loan products related to land.

Unlimited underground loan from AkBars

Bank "Akbars" will readily lend money not only when providing residential or commercial real estate as security, loans secured by a land plot are also relevant. Borrowed funds are provided under such a program to individuals for a period of up to 10 years in the amount of 10,000 rubles. Interest rates in rubles - 15.9-17.9% per annum, and in dollars or euros - 11.9-13.9% per annum. The land that Akbars accepts as collateral must be classified as land of settlements. The site must be assessed and also insured.

Money secured by agricultural land in the Russian Agricultural Bank

You can also take a loan secured by Rosselkhozbank, but not all plots are suitable when applying to this bank - only agricultural land will suit it. This loan can be obtained for any current or investment purposes, both by an individual and by legal entities or entrepreneurs. The maturity of the obligations reaches 8 years. Mandatory independent assessment and insurance of the land in favor of the creditor bank. Other borrowing parameters are individual and are determined only after assessing a potential client.

Tetrapolis is ready to give up to 45,000,000 rubles for land

Bank "Tetrapolis" will provide a three-year loan secured by a land plot, worth from 300 thousand to 45 million rubles. In this case, the loan amount can reach 100% of the collateral value of the land. The decision will be made quickly, and the money will be transferred within 3-7 days from the date of application. The rate is 14-18% per annum in rubles or 10-17% in foreign currency. Additionally, it is proposed to issue a policypersonal insurance.

What does it cost us to build a house… with VTB24

But the VTB24 bank provides loans secured by a land plot not for free consumer purposes or for business, but for a specific task - building a house on the site that will be provided as collateral. The loan can be issued in 5 tranches - as the various stages of construction are completed. The repayment terms are solid - from 3 to 30 years. The minimum loan amount is from 490 thousand rubles, and the maximum limit is limited to 200% of the value of the land. The cost of credit resources - from 12.1% per annum.

Domestic banks offer a wide variety of loans secured by land, you just have to find the best option to borrow money with a minimum overpayment.