Hi,
Does banks provide loan for land purchases?If yes,what is the rate like?Just curious to know.
Is the tenure comparable to housing loan?

I'm just looking to have a better understanding.Thanks.

Purpose of land is need to be known for preferential rate. If the property is located within Penang / Kedah, pls msg for preferential rate.

Regards,

Yes, Banks do offer loan for land purchases.

If not mistaken the margin is usually much lower like 50%
else the interest rate will be much higher for a margin of say 80%.

Best is to check with the banks themselves.



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Land? if you mean residential land or bungalow lot,
you can either finance
A) purchase of Land ONLY. then MOF 90%, rates BLR-1.6/1.8%/...
It will be treated as housing loan also.

or
B) purchase of Land plus construction cost.
so will be "Property under construction"

differentiate what type of the land that u wan to finance.

Agriculture land? bungalow land? industrial land?
each of them has different margin of finance and the rates are vary based on whether the applicant apply under company name or individual name. Rates are subject to the location as well. if the location strategic , the rate will be more lower

Thanks for the input.The land that I'm looking at is an uncategorized land.I saw it in one of the auction.If i were to buy such land,can i categorize it as a residental lot?

The interest rate for land is higher that completed property.

The last time I enquired, for bungalow lot, is 5% p.a.

You will have to do land search and check for the zoning of the land, access to the land is whether available.