Indian Overseas Bank Plot Loan

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Features of Indian Overseas Bank Plot Loan

Interest Rate

7.45% onwards

Processing Fees

Up to 0.53%

Tenure

5 years to 30 years

EMI

Rs. 696 per lakh

Prepayments

Nil on floating rate loans

Eligibility Criteria of Indian Overseas Bank Plot Loan

Salaried Profiles: 

A salaried individual should be employed for at least two years in his or her current position 

Self-employed employee:

A self-employed employee such as a doctor should be in business or the practice of the profession for at least three years. 

The minimum age for both should be 21 years and the maximum age should be 70 years. 

Benefits of an Indian Overseas Bank Plot Loan

There are certain benefits of taking a plot loan from the Indian Overseas Bank. They are as follows: Indian Overseas Bank Plot Loan

  • They provide a long repayment period of up to 30 years. 
  • The Loan value ratio is up to 90%
  • There are no prepayment charges for individual borrowers.
  • IOB home loans are available at low processing charges.
  • This loan is available to both salaried and self-employed individuals. 

Plot Loan

Plot Loans are a specific kind of loan that is provided to you by many banks in India to certain eligible applicants. They are taken by individuals who wish to build their dream houses. Plot loans such as the Axis Bank Plot Loan is a beneficial loan for all. 

This loan is a unique facility provided by banks which is designed to fulfill a very specific need. They are also called land loans and are often confused with home loans. The difference between both should be known by one, before applying for a loan. 

Land Loan Interest Rates

The rate of interest is the same for both, although, it varies from bank to bank to give higher interests for the land loan instead of the home loan. 

Loan to Value Ratio

This means the amount of loan that a borrower will get against his property. LTV is lower for land purchases with construction than with home loans.

Lower Tenure

Land Loans provide a shorter tenure of up to 15 years. Home loans, on the other hand, offer up to 30 years of tenure. 

Tax Benefits

Home Loans qualify for a tax deduction of the actual amount that is mentioned under Section 80C of the Income Tax Act. Tax benefits on land loans are not available. 

Prepayment Penalty

Floating rate loans that are sanctioned to certain borrowers are free from the prepayment penalty for both a home loan and a land loan but both may charge 2-4% of the penalty if a non-individual borrower has taken the money.

Types of Plot Loan Indian Overseas Banks provides

As we move forward, we should learn the difference between plot loans and plot+ construction loans:

Plot Loan

A plot loan is taken solely to purchase land. The individual can decide what he or she wants to do with the land. These are fairly risky because they have no tax benefits. The plot loan should be taken on land in the same municipality. 

Plot+ Construction Loan

A plot+ construction loan is taken not only for the purchase of land but also to construct on it. The construction should begin and end within the stipulated time, otherwise the interest rate increases.

Indian Overseas Bank Plot Loans for Self-employed Individuals

Indian Overseas Bank Plot Loan will allow an individual to avail of many benefits. Any self-employed individual who follows the eligibility criteria can apply for such a loan. 

Who Can Apply for a Self-employed Indian Overseas Bank Plot Loan

LOAN AMOUNT

MAXIMUM FUNDING

Above Rs. 30 lakh to up to 75 lakh.

Up to 80% of the market value or document cost of the property, whichever is lower. 

Above Rs. 75 lakh.

Up to 75% of the market value or document cost of the property, whichever one happens to be lower. 

Types of Plot Loans for Self-employed Individuals

Indian Overseas Bank Plot Loan has various kinds of plot loans that any self-employed individual along with a salaried individual can avail of. 

  1. Adjustable-Rate Loan: This refers to the Retail Prime Lending Rate. It is revised every six months. There is a rise in the interest rate that increases the EMI, which in turn leads to a significant reduction in the principal amount. 
  2. TrueFixed Home Loan- 2/3 Year Fixed Rate Variant: This loan provides half of an adjustable-rate and half of a fixed rate. The rate is changed after 2/3 years. 

Indian Overseas Bank Plot Loan Interest Rate for Self-employed Individuals

Adjustable Plot Loan Rate

Loan Slab Home Loan Interest Rates (% p.a)
For women* (up to 30 lakh) 7.05 to 7.55
For others* (up to 30 lakh) 7.10 to 7.60
For women* (above 30 lakh) 7.30 to 7.80
For others* (above 30 lakh) 7.35 to 7.85
For Women* (75.01 Lakhs & Above) 7.40 to 7.90
For Others*(75.01 Lakhs & Above)

7.45 to 7.95

TruFixed Loan- 2 Year Fixed Rate Variant

Loan Slab Home Loan Interest Rates (% p.a.)
For Women* (up to 30 Lakhs) 7.50 to 8.0
For Others* (up to 30 Lakhs) 7.55 to 8.05
For Women* (Above 30 Lakhs) 7.65 to 8.15
For Others* (Above 30 Lakhs) 7.70 to 8.20
For Women* (75.01 Lakhs & Above) 7.75 to 8.25
For Others*(75.01 Lakhs & Above) 7.80 to 8.30

Indian Overseas Bank Plot Loan Interest Rates for Self-employed Non-professionals

Adjustable Home Loan Rate

Loan Slab Interest Rates (% p.a.)
For Women* (Up to 30 Lakhs) 7.20 to 7.70
For Others* (Up to 30 Lakhs) 7.25 to 7.75
For Women* (Above 30 Lakhs) 7.45 to 7.95
For Others* (Above 30 Lakhs) 7.50 to 8
For Women* ( 75.01 Lakhs & Above) 7.55 to 8.05

TruFixed Loan-2 Year Fixed Rate Variant

Loan Slab Interest Rates (% p.a.)
For Women* (up to 30 Lakhs) 7.65 to 8.15
For Others* (up to 30 Lakhs) 7.70 to 8.20
For Women* (Above 30 Lakhs) 7.80 to 8.30
For Others* (Above 30 Lakhs) 7.85 to 8.35
For Women* ( 75.01 Lakhs & Above) 7.90 to 8.40
For Others*( 75.01 Lakhs & Above) 7.95 to 8.45

Indian Overseas Bank Documents Required for Self-employed Individuals

Proof of Income ITR and financial statements, including balance sheet, profit and loss account, schedules, etc. 
Bank statements Bank statements for the past 12 months
ID and Residence proof Aadhar Card, Pan Card, Voter ID card, Passport, Driver’s license ( if any )
Others Form 16 and Income Tax Returns

Indian Overseas Bank Plot Loan Fees for Self-employed Individuals

Processing Fees: 

The processing fees for the Indian Overseas Bank Plot Loan is 2,500-5,000 rupees.

Pre-payment Charges

Adjustable-Rate Home Loans

  • No prepayment charges are necessary 
  • For loans sanctioned to individual borrowers with the firm, company, etc. as a co-applicant, prepayment charges are at 2% plus taxes.
  • The customer will have to submit documents that IOB asks for, to confirm the source of the funds. 

Fixed-Rate Home Loans

  • No prepayment charges will be applicable 
  • The customer should submit documents that IOB asks for. 
  • Prepayment charges will be 2% plus tax and charges of the outstanding amount should be prepaid through any financial institution or a bank. 

Fixed and Variable Rate Loans

Fixed and Variable Rate Loans (Combination rate)

 

  • During the Fixed Rate period:
    • The prepayment charges will be 2%, plus applicable taxes and statutory charges of the outstanding amount being so prepaid through refinance from financial institutions or any banks, and will apply to all partial/full prepayments.
    • The customer must submit documents that IOB requests, to confirm the source of funds at the time of prepayment of the loan.
  • During the Variable Rate period:
    • No prepayment charges will be applicable
    • 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.

Conversion Fees

Name of the service Name of the charge/fee levied When payable Frequency Amount in rupees
Switch to a lower rate in Variable Rate Loans  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 50,000 rupees 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 50,000 rupees 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.

Cheque Dishonour Charges

The Cheque Dishonour Charges are 200 rupees.

Fees on Account of External Opinion

The external opinion can be from technical advocates and the fees can be paid directly to the person involved. 

Property Insurance

Customers are advised to pay a certain amount to the insurance providers. 

Incidental Charges

The incidental charges are used to cover certain other expenses for a default customer. 

Statutory / Regulatory Charges

The customer is responsible for any charges that are applicable on stamp duty/MOD/MOE/Central Registry of Securitisation Asset Reconstruction and Security Interest of India. 

List of Documents

Up to 500 rupees. 

Photocopy of Documents

Up to 500 rupees. 

Increase/Decrease in Loan Term

Up to 500 rupees. 

Disbursement Cheque Cancellation Charge Post Disbursement

Up to 200 rupees.

Re-appraisal of Loan After 6 Months from Sanction

Up to 2000 rupees plus applicable tax. 

PDC Swap

Up to 200 rupees. 

Indian Overseas Bank Plot Loan for Salaried Individuals

Indian Overseas Bank provides a salaried individual with suitable plot loan offers. One has to fulfill the eligibility criteria to avail of such loans. 

Who Can Apply for a Salaried Indian Overseas Bank Plot Loan 

LOAN AMOUNT MAXIMUM FUNDING
Above Rs. 30 lakh to up to 75 lakh. Up to 80% of the market value or document cost of the property, whichever is lower. 
Above Rs. 75 lakh. Up to 75% of the market value or document cost of the property, whichever one happens to be lower

Types of Plot Loans for Salaried Individuals

Indian Overseas Bank Plot Loan has various schemes that any salaried individual can avail of:

  1. Adjustable-Rate Loan: This refers to the Retail Prime Lending Rate. It changes every six months. There is an increase in the interest rate that increases the EMI and causes a reduction in the principal amount. 
  2. TrueFixed Home Loan- 2/3 Year Fixed Rate Variant: This loan provides only half of an adjustable-rate and another half of a fixed rate. The rate is changed after 2/3 years. 

Indian Overseas Bank Plot Loan Interest Rate for Salaried Individuals

Adjustable Plot Loan Rate: 

Loan Slab Home Loan Interest Rates (% p.a)
For women* (up to 30 lakh) 7.05 to 7.55
For others* (up to 30 lakh) 7.10 to 7.60
For women* (above 30 lakh) 7.30 to 7.80
For others* (above 30 lakh) 7.35 to 7.85
For Women* (75.01 Lakhs & Above) 7.40 to 7.90
For Others*(75.01 Lakhs & Above) 7.45 to 7.95

TruFixed Loan- 2 Year Fixed Rate Variant:

Loan Slab Home Loan Interest Rates (% p.a.)
For Women* (up to 30 Lakhs) 7.50 to 8.0
For Others* (up to 30 Lakhs) 7.55 to 8.05
For Women* (Above 30 Lakhs) 7.65 to 8.15
For Others* (Above 30 Lakhs) 7.70 to 8.20
For Women* (75.01 Lakhs & Above) 7.75 to 8.25
For Others*(75.01 Lakhs & Above) 7.80 to 8.30

Indian Overseas Bank Plot Loan Documents Required by a Salaried Individual

Proof of Identity Aadhar Card, Passport
Proof of Address Aadhar Card, Driver’s License
Date of Birth Proof Pan Card, Passport. 
Proof of Income 3-month salary slip, 6 months bank statements

Indian Overseas Bank Plot Loan fees for Salaried Individuals

Processing Fees: 

The processing fees for the Indian Overseas Bank Plot Loan is 2,500-5,000 rupees.

Pre-payment Charges

Adjustable-Rate Home Loans

  • No prepayment charges are necessary 
  • For loans sanctioned to individual borrowers with a co-applicant, prepayment charges are at 2% plus taxes.
  • The customer will have to submit documents that IOB asks for, to confirm the source of the funds. 

Fixed-Rate Home Loans

  • No prepayment charges will be applicable 
  • The customer should submit documents that IOB asks for. 
  • Prepayment charges will be 2% plus tax and charges of the outstanding amount should be prepaid through any financial institution or a bank. 

Fixed and Variable Rate Loans

Fixed and Variable Rate Loans (Combination rate)

 

  • During the Fixed Rate period:
    • The prepayment charges will be 2%, plus applicable taxes and statutory charges of the outstanding amount being so prepaid through refinance from financial institutions or any banks, and will apply to all partial/full prepayments.
    • The customer must submit documents that IOB requests, to confirm the source of funds at the time of prepayment of the loan.
  • During the Variable Rate period:
    • No prepayment charges will be applicable
    • 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.

Conversion Fees

Name of the service Name of the charge/fee levied When payable Frequency Amount in rupees
Switch to a lower rate in Variable Rate Loans  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 50,000 rupees plus taxes whichever is lower.
Switch 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 50,000 rupees plus taxes whichever is lower.
Switch from Trufixed Fixed Rate to Variable Rate Loan Conversion fees On conversion Once 1.75% of the principal outstanding 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 difference on the principal outstanding 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.

Cheque Dishonour Charges

The Cheque Dishonour Charges are 200 rupees.

Fees on Account of External Opinion

The external opinion is from technical advocates and the fees can be paid off directly to the person involved. 

Property Insurance

Customers are asked to pay a certain amount of money to the insurance providers. 

Incidental Charges

The incidental charges are used to cover certain extra expenses for a default customer. 

Statutory / Regulatory Charges

The customer is responsible to pay for any charges that are applicable on stamp duty/MOD/MOE/Central Registry of Securitisation Asset Reconstruction and Security Interest of India. 

List of Documents

Up to 500 rupees. 

Photocopy of Documents

Up to 500 rupees. 

Increase/Decrease in Loan Term

Up to 500 rupees. 

Disbursement Cheque Cancellation Charge Post Disbursement

Up to 200 rupees.

Re-appraisal of Loan After 6 Months from Sanction

Up to 2000 rupees plus applicable tax. 

PDC Swap

Up to 200 rupees. 

How to Apply for Indian Overseas Bank Plot Loan

  1. Visit Dialabank
  2. Visit the Indian Overseas Bank Plot Loan page.
  3. Check your eligibility
  4. Make sure you have all the documents
  5. Fill up the online form.
  6. Sit back and wait for an expert to contact you. 

Additional Tips for Indian Overseas Bank Plot Loan

  • Check their website for any related information.
  • Check with the eligibility calculator.
  • Make sure you have all the documents.

Plot Loan for Construction vs Home Loan

Parameters

Plot Loans with Construction Home Loans
Tenure

Up to 15 years

Up to 30 years
Tax Benefits

The plot loan and its benefits can be claimed after construction

Home Loans qualify for a tax deduction on the payment of the actual amount.
Interest

Similar to home loans but they can get higher

Starting from 7.45%
LTV

Similar to home loans but they can get higher

Up to 90% of the property’s value
Prepayment value

Nil for people with floating rates

Nil for people with floating rates

FAQs

What is the plot loan interest rate of Indian Overseas Bank?

The interest rate of Indian Overseas Bank Plot Loan is 7.45%

What Indian Overseas Bank Plot Loan?

Indian Overseas Bank Plot Loan allows one to purchase land to construct on it. Plot loans are of two types with each having specific functions.

How much processing fee is applicable on Indian Overseas Bank Plot Loan?

The processing fees on Indian Overseas Bank Plot Loan are 2,500-5,000 rupees.

What is the loan tenure of the Indian Overseas Bank Plot Loan?

Up to 30 years

How much EMI per lakh can be fixed on the Indian Overseas Bank Plot Loan?

Rs. 696 per lakh

How can I avail plot loan from Indian Overseas Bank?

You need to fulfill the eligibility criteria and provide the required documents.

How to apply for Indian Overseas Bank Plot Loan?

You can visit Dialabank, open the Indian Overseas Bank Plot Loan page, and fill out the application form.

How to repay the Indian Overseas Bank Plot Loan earlier than the schedule?

You can make extra payments than the stipulated amount to repay the loan early.

Is it possible to repay my loan earlier than the schedule?

Yes, it is possible to repay the loan earlier than the schedule.

How to check Indian Overseas Bank Plot Loan eligibility?

You can check your eligibility using the eligibility criteria calculator on the Indian Overseas Bank website.

What is the Indian Overseas Bank Plot Loan phone number?

If you have any questions about the Indian Overseas Bank Plot Loan, you can call 9878981144

What is the Plot Loan interest rate for women?

The plot loan interest rate for women is 7.45%

What is Indian Overseas Bank plot loan interest rates for salaried individuals?

The interest rate for Indian Overseas Bank Plot Loan for salaried individuals is 7.05% to 8.0%

What is Indian Overseas Bank plot loan interest rates for self-employed individuals?

The interest rate for Indian Overseas Bank Plot Loan for self-employed individuals is 7.25% to 7.75%

What is Indian Overseas Bank plot loan interest rates for self-employed non-professionals?

Up to 7.25 to 7.75%

How is a plot loan different from a home loan?

A plot loan is availed to buy residential land while a home loan is taken to buy residential built-up/under-construction property.

Can I take a plot loan with a home loan?

No. You can avail of either one of them.

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

The loan amount is up to 70% of the property value.

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

A plot loan can be financed only within municipal limits of pre-specified locations or, in cases of direct allotment by the concerned development authority, outside municipal limits.

What is a Balance Transfer on Plot Loan?

A home loan balance transfer can be availed at an interest rate starting from 6.75%.

Do I get any tax benefits on a plot loan?

No.

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

If the plot loan has been taken specifically for construction, the construction should begin immediately.

 

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