Master the LATEST procedures for bank loans to buy land in 2025

1. Should I borrow from the bank to buy land?

Taking a bank loan to buy land is a reasonable choice in many cases, but customers also need to consider carefully. Below are some benefits and disadvantages when borrowing from a bank to buy land:

For land loans, banks require more complicated documents and procedures than other forms of loans. However, this is the basis for banks to ensure the borrower's financial capacity, minimizing the risk of high loan costs and interest rates.

Therefore, borrowing from a bank to buy land is a safer and more reasonable choice than borrowing through online loan applications or non-bank credit institutions. 

2. Instructions on how to borrow money from banks to buy land quickly and simply

To make the process of getting a bank loan to buy land convenient and smooth, you need to follow the following 4 basic steps:

2.1. Choose loan method

First, you need to understand the loan method and choose the option that suits your needs and financial ability:

• Unsecured loan: No need for collateral, just based on personal reputation. This is a suitable choice if you need quick disbursement, but the interest rate will be higher than a mortgage loan and the loan term is usually short. 
• Overdraft loan: This method has a loan limit of up to 5 times your monthly income, but is only suitable if you have a high income. Both unsecured loans and mortgages are available, but an overdraft loan is not an ideal choice for buying land. 
• Mortgage loan: Requires collateral, but has high loan limit (up to 80% of collateral value) and long loan term (up to 25 years). This is the best option when you have collateral and need a large loan amount to buy land. However, if you buy project land without a pink book, you need to borrow from a bank affiliated with the investor. 

If you do not have collateral, you should choose an unsecured loan for quick disbursement, but the interest rate will be higher. With high income, an overdraft loan is a reasonable choice, although not suitable for buying large-value land. If you have collateral and need a long-term loan, a mortgage loan is the best option, especially when buying land for a cooperative project with a bank. 

2.2. Conditions for bank loans to buy land

The next step is to check whether you meet the conditions for a bank loan to buy land or not. Here are the most basic conditions: 

• Be a Vietnamese citizen, between the ages of 18 and 75. 
• Have legal permanent or temporary residence in Vietnam. 
• Have a stable source of income, ensuring the ability to repay the loan. 
• No history of overdue debt at credit institutions. 
• Own collateral with value commensurate with the registered loan.

2.3. Bank loan application to buy land

Below is a bank loan application to buy land, including documents and detailed requirements: 

Depending on each bank, there will be attached conditions (if any). Therefore, borrowers should carefully check the bank's specific regulations to ensure documents are fully and accurately prepared before submitting. 

2.4. Procedures for bank loans to buy land

After preparing your documents, you need to follow the following 4-step process: 

Step 1 - Prepare loan documents: Borrowers need to complete the necessary documents according to the instructions in step 3 and add other requirements (if any) from the bank. 

Step 2 - Evaluate loan documents: The bank will check and evaluate two main factors: 

• Ability to repay debt: Evaluate the customer's reputation and income level. 
• Collateral: Determine the value of the collateral. 

The appraisal process usually lasts 1 to 2 weeks. 

Step 3 - Sign the credit contract: Once the application is approved, the bank will draft a credit contract. This is an important legal document, customers should read all terms carefully before signing. 

Step 4 - Loan disbursement: After completing the contract signing procedure, the bank will disburse the loan. Disbursement time usually ranges from 1 to 2 working days. 

This clear and professional process ensures customers can quickly own the desired property. 

3. Experience when borrowing from banks to buy land

In order for the bank loan process to buy land to go smoothly, quickly and safely, you need to pay attention to the following 7 issues:

3.1. Determine loan amount

Before borrowing money to buy land, you need to determine the loan level appropriate to your financial ability. Borrowing too much can make it difficult to repay, while borrowing too little may not be enough to buy the land you want. 

Calculate your monthly income and expenses to know how much money can be used to pay off debt, and also consider non-fixed expenses such as medical, entertainment, and travel.,... to determine a reasonable loan level. 

3.2. Note the loan term

Loan term affects interest rate and monthly payment amount. Short-term loans help reduce the pressure to repay debt quickly, but interest rates are higher. Long-term loans have lower monthly payments and lower interest rates, but require long-term repayment capacity. Carefully consider your financial capacity before deciding on the loan term. 

3.3. Pay attention to loan interest rates 

Before borrowing, you need to understand the interest rate and related fees such as service fees, early payment fees and property appraisal fees. Banks may apply different interest rates, And understanding how interest rates are calculated helps you choose the bank with the lowest interest rate, most suitable for your loan needs.,

3.4. Read the contract carefully

Before signing the contract, you need to read each term carefully to clearly understand your rights and responsibilities. Pay attention to interest rates, service fees and early payment terms to avoid legal risks later. 

3.5. Dissolve the mortgage properly

When you pay off the loan, you need to follow proper mortgage release procedures to ensure property ownership. Please complete the procedures with the bank and competent authority so that the mortgaged property is officially yours. 

3.6. Pay attention to payment before due date 

Paying off debt early will help reduce interest costs. If possible, pay off your debt early to reduce your financial burden. However, you need to learn about the bank's regulations on early payment to avoid unwanted fees.

3.7. Learn about the incentive program 

Many banks have preferential programs on interest rates and service fees. Please carefully study the conditions and regulations of each bank to choose the incentive program that suits your finances. These programs will help you save on loan costs. 

4. Answers to 4+ frequently asked questions when borrowing from a bank to buy land?

Below is a summary of the 4 most common questions when learning about the process and procedures for bank loans to buy land:

4.1. How long is the term for a bank loan to buy land? 

The term for a bank loan to buy land is usually from 5 to 30 years. Loan term is quite flexible, depending on each bank's policy and your financial situation. Some banks also support loans for up to 30 years, helping you allocate debt repayments appropriately, reducing financial pressure. 

4.2. How much percentage can I borrow from the bank to buy land?

When borrowing money to buy land, banks usually do not lend the entire value of the land but only about 50-70%. Therefore, before borrowing, you should make sure you have accumulated the necessary capital, ideally about 50% of the total value of the real estate. 

4.3. Bank loan of 1 billion for 10 years, how much to pay each month?

The monthly payment amount when borrowing 1 billion from a bank for a period of 5, 10, 15 or 20 years usually ranges from 12 million to 25 million VND. However, this is only an illustrative figure, the actual amount will depend on each bank's policy as well as the specific loan conditions. 

4.4. How long does it take for a red book mortgage loan to be disbursed?

Disbursement time when borrowing a red book mortgage depends on the customer completing all documents and procedures. Normally, the bank can disburse funds within 2 hours after the customer signs the contract and submits all necessary documents, however the specific time may vary depending on each bank's policy. 

5. Which bank has a loan package to buy land with good interest rates and many incentives? 

SeABank is one of the banks with special loan packages for customers who are members of the Women's Union, offering many attractive incentives. With a loan term of up to 48 months and especially no collateral required, it helps you easily access capital without needing collateral.

In addition, SeABank provides flexible repayment policies, suitable for each customer's financial ability and income. You also don't have to worry about early repayment fees, because this loan package is completely free when you repay the loan early, helping to save on interest costs.

With these incentives, SeABank is the ideal choice for those who want to borrow land to buy land with low interest rates and favorable loan conditions, especially for customers who are members of the Women's Union.

Understanding bank loan procedures to buy land and fully preparing the necessary documents will help you save time and ensure the loan is approved quickly. At SeABank, this procedure is extremely simple, you can contact us via Hotline 1900599952, Our consulting staff will provide the most dedicated support and answers!