Work out your exact monthly instalment, total interest and full repayment cost before you commit to a land loan.
Land-only loans (plots without an attached construction plan) are usually financed at a lower loan-to-value ratio than home loans, and often carry a slightly higher interest rate — confirm current rates and eligibility with your lender.
Your EMI (Equated Monthly Instalment) is made up of two parts: a portion that repays the principal you borrowed, and a portion that covers interest — in the early years of a loan, interest makes up a larger share of each payment, shifting toward principal as the loan matures.
A larger down payment reduces both your loan amount and total interest paid over the loan's life, while a longer tenure lowers your monthly EMI but increases the total interest you'll pay overall. Since land-only loans are typically financed at a lower loan-to-value ratio than home loans, budget for a larger down payment than you might expect from a typical home loan.