Buying Land with a Home Loan? Know How to Convert Bigha to Sq. Ft

Most people dream of buying land in India, be it to construct a house, invest, or use for agricultural purposes. One important thing that one must know is how field sizes are divided. ‘Bigha’ is a term for land measurement. Also, the cost of land has continuously increased, prompting many buyers to consider getting house loans when they buy land.

However, before focusing on financial assistance to afford land, it is important to understand how land measurements are carried out in India, especially using indigenous terms such as ‘bigha’. Since this term is not the same pan-India, converting bigha into square feet would be prudent.

Let’s explore how to convert bigha to square feet, the aspects of home loans, and how you can secure the best loan for your land purchase.

What is bigha? Understanding land measurement in India

Bigha is a widely used traditional unit of land measurement in India, especially in states like Uttar Pradesh, Bihar, Rajasthan, and West Bengal. However, one bigha in square feet varies depending on the state. This makes it essential to convert bigha to square feet accurately before proceeding with a land transaction.

Also Read: Home Loan: All You Need to Know – Godrej Capital

Common regional variations of bigha

Here’s how 1 bigha in square feet differs across different states:

• Uttar Pradesh – 1 bigha = 27,000 sq ft
• Haryana & Rajasthan – 1 bigha = 27,225 sq ft
• Punjab – 1 bigha = 9,070 sq ft
• West Bengal – 1 bigha = 14,400 sq ft
• Assam – 1 bigha = 14,400 sq ft

This variation highlights why land buyers must convert bigha to square feet based on the location before making a purchase.

How to convert bigha to square feet

To convert bigha to square feet, use this simple formula:

Total land area (sq ft) = Number of bighas × Value of 1 bigha (sq ft) in that region

Example Calculation:

If you purchase 2 bighas of land in Uttar Pradesh, the calculation would be:

2 bighas × 27,000 sq ft = 54,000 sq ft

This calculation helps ensure you’re paying for the correct land area based on the agreed-upon measurement.

Financing options: Home loans

Buying land often requires financial assistance, and lenders offer home loans depending on how you plan to use the land. Choosing the right option ensures better loan terms and benefits.

Home loans: Best for building a house

A home loan is an excellent choice if you plan to build a house on the land soon. These loans offer longer repayment terms and lower interest rates than other loans.

Key features of home loans for land buyers

• Purpose: Suitable if you plan to construct a home on the land.
• Loan-to-Value (LTV) Ratio: Covers 80-90% of the property’s value.
• Repayment Tenure: Can extend up to 30 years.
• Tax Benefits: Get tax deductions under Section 80C (principal repayment) and Section 24(b) (interest payments) after construction is completed.
• Important: Tax benefits are available only if the house is built within a certain period after loan approval.

Also Read: How to Check Home Loan Eligibility?

Latest trends in India’s land financing sector

India’s real estate and loan sectors have seen significant changes:

• Rising demand for home loans – Housing finance companies reported a 12% increase in home loan applications in 2024.
• RBI policy updates – The Reserve Bank of India (RBI) recently revised lending norms, making home loans more accessible.

Key factors to consider before applying for a loan

Before applying for a loan to buy land, keep these points in mind:

• Interest rates: Compare lenders for the best deal.
• Down payment: Be prepared to fund 10-30% of the purchase price yourself.
• Eligibility: Ensure your credit score is above 750 for better loan terms.

The Bottom Line

Purchasing a plot of land is a significant financial move, and choosing the right home loan is fundamental to affordability and advantage. Understanding the 1 bigha to sq ft conversion ensures clarity in land measurement, helping you make informed decisions.

In case you're ready to buy some property, apply for a home loan now. It is important to act today and start the process of securing your dream property here and now.

Moreover, if you want to calculate your monthly EMIs accurately without putting in a lot of mental labour, use an online EMI calculator. This will definitely make calculating EMIs a cake walk for you!

FAQs

Q.1. How is land calculated in Square Feet?

A. The formula to calculate the same is as follows:

Length (in feet) x Width (in feet) = Area of land in sq. ft.

You can also use an online calculator to do the same.

Q.2. Can one get a 90% loan on a plot?

A. The highest loan amount for plot loans is determined by the policies of the lender. In most cases, lenders typically offer up to 75% of the property's value for the loan. However, for lower value plots (those that are less than Rs. 75 lakh), it's possible to secure up to 90% of the plot’s value.

Q.3. Can one take a home loan against land?

A. Lenders usually approve a loan of up to 50% to 75% of the land value, depending on your credibility and eligibility. However, check your financial goals and expenditures to find a loan that suits your individual monetary needs.

Q.4. Which land is best for investment?

A. Current or planned residential and commercial development properties are good for investments. Other viable options include cropland, livestock-raising land, vineyards, recreational land, etc.

Q.5. Should one invest in flat or land?

A. Choosing between a plot and a flat depends on your financial situation and goals. Meanwhile, plots offer more customization and returns, flats provide rental income through tenants and often require less constructional effort.

Disclaimer:

The contents of this article are for information purposes only and not a financial advisory. The information is subject to update, revision, and amendment and may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Godrej Capital or its Affiliates to any requirements. Godrej Capital or its Affiliates shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any decisions, financial or otherwise based on the contents and information mentioned. For more information, please visit www.godrejcapital.com.