North East Small Finance Bank Plot Loan

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North East Small Finance Bank Plot Loan Interest 2020

Interest Rate 10.9%
Tenure 60-120 Months

Loan Amount 

5-25 Lacs

North East Small Finance Bank Plot Loan Eligibility

  • The applicant must be a citizen of India or a fully documented NRI. He, essentially, must be a Person of Indian Origin (PIO).
  • The applicant’s age must be in the range of 18 years and 70 years at the time of loan maturity.
  • The applicant must be salaried or self-employed with a regular income.
  • The applicant should earn more than the minimum required income.
North East Small Finance Bank Plot Loan

North East Small Finance Bank Plot Loan

Benefits of availing North East Small Finance Bank Plot Loan

Two types of tax benefits associated with Plot loan for Resident Indians:

Repayment of the Principal Amount: One can get a Tax rebate under section 80C of the Income Tax Act on the whole amount repaid by the borrower in a financial year, maximum up to Rs. 1,50,000/- each financial year (Increased from 1 Lakh to Rs. 1.5 Lakh in Budget 2014).

Repayment of the Interest on Home Loan: Tax Benefit on Plot Loan for payment of Interest is allowed as a deduction under Section 24(1) of the Income Tax Act. One is eligible for a Tax Rebate of a maximum of Rs. 2 lakh per financial year for Plot loan interest paid by the borrower during that financial year.

North East Small Finance Bank Plot Loan

 Quick View

Plot Loan amount Up to INR 3 Crores
Loan Tenure 15 Years
Margin  24%
Pre-payment Penalty Nil

Types of Plot Loan North East Small Finance Bank Provides

Plot Loan

A simple plot loan will only allow you to buy a plot of empty land or a vacant residential plot that can be used for constructing a house or any other investment purposes. This type of loan is very risky because there are no tax benefits. The property should also be located with the municipal limits.

The plot loan rates are given by each bank is very different. Factors such as your employment type, amount, etc play an important role in the determination of the loan.

Plot + Construction Loan

This loan is taken to not only buy a residential plot but to also construct a house on it within a given time. If the borrower fails to begin the construction on time, the bank will significantly increase the interest rate.

North East Small Finance Bank Plot Loan With Construction vs Home Loan

Parameters Land Loan with Construction Regular Home Loan
Plot + Construction loan interest rates Rates are the same for a Plot loan, ‬but the plot + Construction Loan interest rates can be higher if you want the construction period to be longer than usual Interest rates are starting from @6.75%*.
LTV Up to‭ ‬70%‭ ‬of the property’s value Up to‭ ‬90%‭ ‬of the property’s value
Tenure Up to‭ ‬15‭ ‬years Up to‭ ‬30‭ ‬years
Tax Benefits The plot loan that is availed for construction and its benefits can be claimed post completion of the construction On principal amount under section‭ ‬80C and interest amount under section‭ ‬24‭(‬b)
Prepayment Penalty Nil for individuals on floating rates Nil for individuals on floating rates

1.Plot Loan Interest Rates

The rate of interest in case of a loan to purchase land and plot loans are the same.‭ ‬However,‭ ‬certain banks offer a few basis points higher rates for a loan for land purchase than that of home loans.‭ ‬Banks give a specific given time for construction over the plot,‭ ‬and the borrower is required to give way a construction certificate with the bank.‭ ‬If the borrower does not make construction over the plot within the period from the date of the first payment,‭ ‬the land loan interest rates structure for the borrower changes from a home loan to a loan against the property.

2.Loan to Value Ratio‭ (‬LTV‭)‬

Loan to value or LTV means the amount of loan which a borrower will get against his property.‭ ‬LTV,‭ ‬in the case of‭ ‬a loan for land purchase with construction,‭ ‬is notably lower and could be round off at a maximum of‭ ‬70%‭ ‬of the land value.‭ ‬In the case of home loans,‭ ‬LTV scale between‭ ‬75%‭ ‬to‭ ‬90%.

3.Lower Tenure

Plot loans have comparably a shorter tenure of up to‭ ‬15‭ ‬years,‭ ‬which is not the case of home loans,‭ ‬which is companied by a longer tenure of‭ ‬30‭ ‬years.‭ ‬Therefore,‭ ‬the EMI in the case of a loan for plot purchase is more than that of regular home loans.‭ ‬The tenure for a land loan also varies with the age of the borrower,‭ ‬repayment capacity,‭ ‬etc.

4.Tax Benefits

Plot loans qualify for a tax subtraction on payment of the principal amount under Section‭ ‬80C of the Income Tax Act as well as the interest component under Section‭ ‬24‭(‬b‭) ‬of the Income Tax Act.‭ ‬On the other hand,‭ ‬tax benefits on land loans are not available.‭ ‬However,‭ ‬borrowers could claim a tax deduction on a loan if the house is constructed on a plot purchased by the borrower.‭ ‬A borrower can claim a tax deduction against the loan amount taken for construction,‭ ‬after the accomplishment on the plot.

5.Prepayment Penalty

Floating rate loans authorize to individual borrowers are free from the prepayment penalty if a borrower wishes to foreclose the loan.‭ ‬However,‭ ‬a plot loan like a home loan could bring prepayment charges of‭ ‬2‭ ‬to‭ ‬4%‭ ‬of the prepaid amount if the non-individual borrower has availed it.‭ ‬A borrower should go through the loan agreement carefully and clarify the foreclosure charges of the loan before signing the agreement.‭

Type of North East Small Finance Bank Plot Loan for self-employed:

Tru mounted loan – 2/3 Year mounted Rate Variant

Nort East Bank small Finance Plot Loan gives customers a vicinity adjustable-rate term and a vicinity mounted rate term. underneath the TruFixed loan, the individual will avail mounted rate up to 2/3 years, once that the loan can amendment to Associate in Nursing adjustable-rate loan mechanically, summation to a complete of a 15-year loan term.

Adjustable Home Rate Loan

The adjustable-rate plot loan is joined to Nort East Bank small Finance Plot Loan provides Retail Prime disposition Rate (RPLR). The charge per unit on the loan is revised once every 3 months if there’s an amendment within the RPLR, taking the date of the primary disbursement under consideration. an increase in the charge per unit can result in a rise within the EMI’s interest element that successively can cut back the principal element. this may extend the loan term, and contrariwise, in cases wherever the charge per unit drops.

North East Small Financial Bank Plot Loan Provides for salaried people

  • Salaried people will apply for this loan if the borrower is wanting to:
  • Buy a plot that’s being resold
  • Buy a plot through direct allotment in an exceedingly housing society or a developer project
  • Customized reimbursement choices are given to the receiver reckoning on the loan quantity, loan tenure, and interest rates provided by the bank.
  • Attractive interest rates are offered on the plot loans to create it cheap for the candidates.
  • No hidden prices are charged on the loan.

Who will apply for a Nort East Small Finance Bank Plot Loan Provides For salaried Individuals?

The loan may be applied either on an individual basis or conjointly. The co-applicants for the plot loans should be the planned house owners of the plot. Co-applicants usually comprise of relations and wish not to be co-owners of the property.

Loan term

  • The most tenure up to that one will distribute his payments for his/her loan is fifteen years.
  • The loan term depends on the reimbursement theme the person has opted for.
  • The customer’s profile, age of the plot at the time of loan maturity, age of the client at the time of loan maturity additionally play a job choose the loan term.

Maximum loan amount

Loan Amount Maximum Funding
Up to Rs.30 lakh 80% of the property price*
Rs.30.01 lakh to Rs.75 lakh 80% of the property price*
Over Rs.75 lakh 75% of the property price*

The maximum funding of the loan can be restricted to 70% of the property cost if the property is situated outside city limits.

Type of North East Small Financial Bank Plot Loan Provides For Salaried Individuals:

TruFixed Home Loan – 2/3 Year Fixed Rate Variant:

This loan gives customers a part adaptable rate term and a part fixed rate term. In this Tru Fixed home loan, there is an advantage of keeping the rate of interest fixed for 2/3 years later to which the loan changes to an adjustable rate of interest loan up to a total of 15 years loan term.

Adjustable-Rate Loan:

The adjustable-rate plot loan is connected to the North East Small Finance Bank Retail Prime Lending Rate (RPLR). The interest rate on the loan is revised once every three months. A rise in the interest rate will also increase the EMI’s interest component which in turn will reduce the principal component. If the interest rates drop-down this will increase the loan term

North East Small Financial Bank Plot loan interest rates for salaried individuals

Adjustable Home Rate Loan

For salaried individuals, the Retail Prime Lending Rate is 16.20%

TruFixed Loan – 2 Year Fixed Rate Variant

the Retail Prime Lending Rate is 16.20%

North East Small Financial Bank Plot Loan Provides Fees For Salaried Individuals

Processing fees

For a self-employed professional, the processing fee is Rs.3,000 or up to 0.50% of the loan amount whichever is higher along with other additional applicable taxes.

Prepayment charges:

Adjustable-Rate Home Loans (ARHL) Adjustable-Rate Loans (ARHL): ·        No prepayment charges will be payable on account of full/part payments for loans sanctioned to individual borrowers. ·        For loans sanctioned to individual borrowers with the firm, company, etc. as a co-applicant. Prepayment charges at 2% plus taxes, as may be applicable from time to time, of the amount being prepaid, are payable. ·        The customer will have to submit documents that the North East Small Finance Bank plot loan deems fit and proper to confirm the source of funds at the time of prepayment of the loan.
Fixed-Rate Home Loans (FRHL) Fixed-Rate Loans (FRHL) ·        No prepayment charges will be applicable for part/full payments made from own sources i.e., sources other than a bank/NBFC/HFC or financial institutions ·        The customer has to submit documents that North East Small Finance Bank plot loan sees fit and proper to determine the source of funds. ·        Prepayment charges will be 2% plus taxes and statutory levies and charges of the outstanding amounts being so prepaid through any financial institution or any bank and will be applied to all full/ partial prepayments.
Fixed and Variable Rate Loans (Combination rate) Fixed and Variable Rate Loans (Combination rate) ·        During the Fixed Rate period: ·        The prepayment charges will be 2%, plus applicable taxes and statutory charges and levies of the outstanding amount being so prepaid through refinancing from financial institutions or any banks, and will apply to all partial/full prepayments. ·        The customer must submit documents that the North East Small Finance Bank plot loan approves to confirm the source of funds at the time of prepayment of the loan. ·        During the Variable Rate period: ·       There will be no prepayment charges applicable on account of full/partial prepayments for loan sanctioned to individual borrowers. ·        For loans sanctioned to individual borrowers with the firm, company, etc. as co-applicants. Prepayment charges at 2% plus taxes and statutory charges, as may be applicable from time to time, of the amount being prepaid are payable. The prepayment charges mentioned will be applicable from the date of execution of the loan agreement. However, the charges are subject to change from time to time depending on the prevailing policies of the North East Small Finance Bank plot loan.

Conversion fees: 

North East Small Finance Bank plot loan gives an advantage to its already existing customers that are the conversion facility to pull down the rate of interest on the loan by interchanging schemes. This facility can be used by paying a fee or one can either reduce the loan amount time or EMI. Here are the options of conversions available for the existing North East Small Finance Bank customers:

Name of the service/    product Name of the charge/fee levied When payable Frequency Amount in rupees
Switch to a lower rate in   Variable Rate Loans (Housing/improvement/  extension) Conversion fees On conversion On every spread change Up to 50% of the principal outstanding and undisbursed amount at the time of conversion or a cap of Rs.50,000 plus taxes whichever is lower.
Switching to Variable Rate Loan from Fixed Rate Loan (Housing/improvement/extension) Conversion fees On conversion Once Up to 50% of the principal outstanding and undisbursed amount at the time of conversion or a cap of Rs.50,000 plus taxes whichever is lower.
Switching from Trufixed Fixed Rate to Variable Rate Loan Conversion fees On conversion Once 1.75% of the principal outstanding and undisbursed amount plus taxes at the time of conversion.
Switch to Lower Rate (Non-Housing Loans) Conversion fees On conversion On every spread change Half of the spread difference on the principal outstanding and undisbursed amount plus taxes, with a minimum fee of 0.5% and a maximum fee of 1.50%.
Switch to Lower Rate (Non-Housing Loans) Conversion fees On conversion On every spread change 0.5% of principal outstanding and undisbursed amount plus taxes at the time of conversion.
North East Small Finance Bank plot loan

Cheque discredit charges: 

The cheque discredit charges for the North East Small Finance Bank plot loan are Rs.200 (conditions apply).

Fees on account of external opinion: 

The external opinion can be either from technical valuers or advocates and the fees can be paid directly to the person in charge depending on the kind of help condensed.

Property insurance: 

For keeping the policy active, the customers will have to pay the premium amounts to the insurance provider regularly without any fault.

Charges on account of delayed payments: 

In case there has been a delay in paying the EMI or the interest then the customer will have to pay an additional interest of 24% p.a

Incidental charges

Incidental charges and expenses are imposed to cover the charges, costs, and other expenses that may have been utilized to recover dues from a defaulting customer.

Statutory/regulatory charges:

 The customer will be solely responsible for all the charges applicable on stamp duty/MOD/MOE/Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI).

List of documents: 

Rs 500 is the cost for the list of documents taken for the North East Small Finance Bank plot loan.

Photocopy of documents

Rs 500 is the cost for the photocopy of documents taken for the North East Small Finance Bank plot loan.

Increase/decrease in loan term: 

If there is a need where you want to increase or decrease loan term then you have to pay Rs 500 along with the application form. 

Disbursement cheque cancellation charge post disbursement: 

The cost for the Disbursement cheque cancellation Is Up to Rs.200 asper the North East Small Finance Bank plot loan. 

PDC swap

The PDC swap charges a minimal amount of Rs 200. 

Re-appraisal of the loan after 6 months from sanction:

 If you want a re-appraisal of the North East Small Finance Bank plot loan after 6 months from its sanction then you may have to pay Rs 2000 along with the applicable taxes. 

North East Small Finance Bank Plot Loan Charges

 Bank home equity credit Processing Fee

North East Small Finance Bank plot loan home equity credit processing charges are up to 0.50% of the loan amount from its home equity credit customers to hide its expenses of conducting a credit appraisal and technical evaluation of the property. The bank charges a minimum processing of ₹ 1,500 and has capped the utmost processing fees at ₹ 15,000.

The processing fees will be typically non-refundable and need to be paid at the time of the application. Additionally to North East Small Finance Bank plot loan processing fees, the bank also charges certain technical and legal charges which are explained to the customer during the loan process and are payable once the application proceeds further.

North East Small Finance Bank Plot Loan Home Equity Credit Prepayment

North East Small Finance Bank plot loan charges Nil fees on prepayment of floating-rate loans, as per RBI prepayment rules which prohibit banks from charging prepayment penalty on loans with a floating rate of interest. Hence, it becomes extremely easy to balance transfer your loan from one bank to a different one. If you opt to foreclose or transfer your housing loan to a different bank, you would like to use an equivalent to a North East Small Finance Bank plot loan for a foreclosure while processing your new home equity credit application with the new bank.

However, if you’ve got taken a hard and fast rate home equity credit from North East Small Finance Bank plot loan, you’ll get to pay a foreclosure fee to shut your account or transferring it to a different bank as per your loan agreement with North East Small Finance Bank plot loan.

How to apply for North East Small Finance Bank Plot Loan

1.You can conveniently apply for the plot loan online at www.dialabank.com.

2. By just filling the online form with appropriate details and required documents.

3. Visit us at the bank or through our Dialabank’s official website.

4. Our Customer Representative will contact you and help you choose the best loan for you.

5. You can also call us on 9878981166 for faster assistance.

Documents Required For North East Small Finance Bank Plot Loan:

  1. Duly filled and signed application form with photograph
  2. Identity Proof- Aadhar Card, PAN Card, Passport, Driving License, Voter id card, ID-card issued by Government
  3. Address Proof – Aadhar Card, Passport, Driving License, Voter id card, Electricity/ Telephone/ Post-Paid Mobile bill, Bank statement
  4. Age Proof – Passport, Birth Certificate, PAN card, Driving License, Voter id card, Employee ID card (only for PSU/ Government employees), School/ College leaving certificate
  5. Form 16
  6. Latest 6 months salary slips for salaried persons
  7. Bank Statement of the past 6 months
  8. Income Tax Returns (ITR) of the last 3 years
  9. Last 3 years CA Certified or Audited Balance Sheet and Profit & Loss Account.
  10. Processing fee cheque.
  11. The copies of the title documents of the property and the approved plan.
  12. For the Construction or Renovation case, cost estimate from the Architect.

North East Small Finance Bank Plot Loan Faqs

What is Plot Loan interest Rate in North East Small Finance Bank?

Citibank Plot Loan Interest Rate starts from 10.9%.

What is North East Small Finance Bank Plot Loan?

A loan for plot purchase can only be availed for the purchase of a vacant residential plot or a piece of land that can be later used to construct a house or for investment purposes.‭

How much Processing Fee is applicable on North East Finance Bank Plot Loan?

The processing fee applicable is 0.50 % of the loan amount.

What is the loan tenure of North East Finance  Bank Plot Loan?

The loan tenure is up to  15 years.

How much EMI per lakh can be fixed on North East Finance  Bank Plot Loan?

THE lowest  EMI per lakh on Plot Loan from North East Finance Bank is ₹ 691 per lakh.

How can I avail Plot Loan from North East Finance Bank?

Log in to our official website www.dialabank.com or call at  9878981166.

How to repay North East Finance Bank Plot Loan earlier than the schedule?

Your Plot Loan can be repaid through EMI Payments, Partial Repayments, and full prepayment or closure of the loan.

Is it possible to repay my North East Finance Bank Plot Loan earlier than the schedule?

Yes

How to check North East Finance  Bank Plot Loan Eligibility?

Visit our official website www.dialabank.com

What is the North East Finance Bank Plot Loan Phone number?

9878981166.

What is North East Finance Bank Plot Loan for women?

The usual interest rate of 10.9% p.a.

What is the North East Finance Bank Plot Loan interest rate for salaried individuals?

North East Finance  Bank offers an interest rate of 10.9 % p.a.

What is the North East Finance Bank Bank Plot Loan interest rate for self-employed individuals?

North East Finance Bank offers an interest rate of 10.9% p.a

What is the North East Finance  Bank Plot Loan interest rate for self-employed non-professionals?

North East Finance  Bank offers an interest rate of 6.75% p.a.

How is a plot loan different from a home loan?

The rates are similar to a home loan, but if you want the construction period to be longer then the interest rates of plot + construction loan can be higher. The rate of Interest starts at 6.75 % p.a.

Can I take a plot loan along with a home loan?

Yes

What is the maximum amount that I can take as a loan?

Up to 25 Lakhs.

Can a plot loan finance investment in any plot, anywhere?

Yes

What is a Bank Transfer on Plot Loan?

North East Finance Bank allows you to electronically transfer funds online, at your convenience, to a person with an account with any bank in the country.

Do I get any tax benefits on Plot Loan?

Yes

How many years can I keep the land before starting construction?

The builder should commence construction within two years.

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