The advantage of this type of loan is the Financing and low interest (Commercial) / Murabaha rate (Islamic) compared to personal loans. A Land loan must be for personal use Only and Not for building a factory or a commercial building.
The land which a client wants to buy must be Regulated Land and must not be Agricultural or Common Land.
This loan is designed to achieve the client’s dreams of buying a land and he can invest it for building his/her own home with a LTV (loan to value) determined by the banks. The policies differ according to the client’s income as a value and a source.