Whether banks and financial institutions lend money for purchase of land?
Yes, some banks do consider grant of loan for purchase of land as long as it is for residential purpose only. Banks also grant composite loan for purchase of house sites and for construction of house there on. The quantum of housing loan would depend on your credit profile and re-paying capacity.
You get no tax breaks if you take loan to buy a plot of land. But, if you take a composite loan for purchase of site and construction of house thereon, you can get a tax break. In such a case, the tax benefits are available on both portions of the loan - one to purchase the plot and the other one taken to construct the house thereon.
Please note that the benefits under Income Tax Act can be availed only when the construction of the house is complete.