When it comes to real estate, understanding the nuances of property measurements is crucial. One of the common confusions homeowners and buyers face is the difference between plinth area and built up area. Knowing these terms is essential for accurate property valuation, and it can also help when applying for a Loan Against Property with Bajaj Finserv. This guide will provide a clear understanding of these concepts, helping you make informed decisions in your real estate ventures.
The difference between plinth area and built up area is significant as it affects the property's valuation, tax calculation, and insurance premiums. A precise understanding can help in accurate property assessment, ensuring you get the best value, especially when leveraging financial products like Bajaj Finserv Loan Against Property. This article will walk you through the definitions, calculations, and key differences between plinth area and built up area, helping you navigate these terms with ease.
What is the Plinth Area?
Plinth area refers to the covered built-up area measured at the floor level of any storey. It includes the area of the internal and external walls, lobby, corridors, and the space under the walls. It does not include open areas such as terraces, balconies, or any other uncovered spaces.
Understanding the plinth area is vital as it forms the base for calculating property taxes and other related charges. Accurate measurement of the plinth area ensures that you are not overpaying or underestimating the value of your property. For those considering a Loan Against Property, having an exact plinth area measurement can streamline the loan approval process and get you a better deal.
What is a Built Up Area?
The built up area, on the other hand, encompasses the plinth area along with the space covered by balconies, terraces (if covered), and other external areas that are part of the property. It includes everything that comes under the roof of your property.
This metric is crucial for understanding the actual usable space within a property. When applying for a Loan Against Property, knowing the built up area helps in providing an accurate value for the property, thus ensuring you get a loan amount that reflects the true worth of your property.
This metric is crucial for understanding the actual usable space within a property. When applying for a Loan Against Property, knowing the built up area helps in providing an accurate value for the property, thus ensuring you get a loan amount that reflects the true worth of your property.
Understanding the built-up area of your home can unlock more value than you think. If you’re looking to fund a big purchase or consolidate debt, why not leverage your property’s full worth? Bajaj Finserv Loan Against Property offers higher loan amounts based on accurate property measurements—giving you financial flexibility when you need it most. By using your property as collateral, you can unlock access to large funds of up to Rs. 10.50 Crore*—it is a smart way to manage your finances with ease! Get funds within 72 hours* of approval.
Key Differences Between Plinth Area and Built Up Area
| Feature | Plinth Area | Built Up Area |
| Definition | Covered area measured at floor level | Includes plinth area plus balconies, terraces (if covered), etc. |
| Components included | Internal and external walls, lobby, corridors, space under walls | Plinth area + balconies, covered terraces |
| Usable space | Less usable space compared to built up area | More usable space, includes additional covered areas |
| Impact on valuation | Lower property value compared to built up area | Higher property value includes more space |
| Importance for loans | Basis for tax calculation and basic property valuation | Crucial for accurate property valuation and loan amount |
How to Calculate Plinth Area?
- Measure the external dimensions of the building at the plinth level.
- Include the thickness of external and internal walls.
- Add the area of lobbies, corridors, and staircases within the building.
- Exclude open spaces like balconies and terraces.
How to Calculate Built Up Area?
- Start with the plinth area measurement.
- Add the area of covered balconies.
- Include the area of covered terraces.
- Ensure that all covered external spaces are part of the calculation.
Got your plinth and built-up areas calculated? Great! Now is the perfect time to explore how this translates to your property’s market value. With Bajaj Finserv Loan Against Property, you can use that value to get a substantial loan at attractive interest rates. It is a smart way to put your property's potential to work for you. Whether it is expanding your business or funding your child's education, our loan against property can help without parting with your asset. Get the required funds now!
Common Mistakes in Calculating Plinth and Built Up Areas:
- Omitting wall thickness: Ensure to include the thickness of both internal and external walls in the plinth area.
- Ignoring covered spaces: Remember to add all covered spaces like balconies and terraces to the built up area.
- Incorrect measurements: Double-check all dimensions to avoid calculation errors.
- Mixing up terms: Clearly distinguish between plinth area and built up area to avoid confusion.
Don’t let vague measurements reduce your property’s financial worth. A clear understanding of plinth vs built-up area can help you present a more accurate value when applying for a loan against property. Bajaj Finance ensures a seamless approval process and offers flexible repayment options tailored to your needs. Get a loan of up to Rs. 10.50 Crore* with the option of interest-only EMIs during the initial tenure.
Understanding the difference between plinth area and built up area is crucial for accurate property valuation. This knowledge not only helps in real estate transactions but also when applying for financial products like Bajaj Finserv Loan Against Property. Proper calculation and distinction between these areas ensure you make informed decisions, get accurate valuations, and secure the best deals.
With Bajaj Finance, you can leverage your property value efficiently and enjoy benefits like competitive interest rates and flexible repayment options. Whether you are planning a new investment or need funds for personal use, a Loan Against Property from Bajaj Finance is a smart choice.
Misjudging your property’s area can cost you—especially when applying for a loan. That’s why knowing the difference between plinth and built-up area matters. Use this insight to your advantage with a loan against property from Bajaj Finance and access funds while maintaining ownership of your asset. It's funding made smart and simple. Get access to large funds with the flexibility to part-prepay your Flexi Loan at no extra cost.
