United Bank of India Plot Loan

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Turn your dream home into reality

Rates as low as 6.90%*
Loans Up to 15 Crore
Doorstep Service
Hassle-free Disbursal
Unbiased Experts Advice

United Bank of India Plot Loan Features 

Interest Rate 8.00% p.a. 
Prepayment  NIL charges on floating rate loans 
EMI

THE lowest EMI per lakh on a home loan from the United Bank of India is ₹ 734 per lakh offered at the lowest interest rate of 8.00% at the longest loan tenure of 30 years.

Average Customer Rating  3.5/5.0
Processing Fee 0.59%
Loan Tenure  Up to 30 years 

Eligibility Criteria for United Bank of India Plot Loan

  • The age of an individual must be above 21 years.
  • He/she should have a regular source of income.
  • Salaried individuals, salaried-professionals, and self-employed individuals can apply for the same.
  • Salaried persons should be in regular and permanent service.
  • Self-employed & business persons and professionals should have at least 2 years of business stability.
  • Business and self-employed professionals should have 2 years of ITR.

Benefits of United Bank of India Plot Loan 

  • Easy Documentation
  • United Bank of India Mudra LoanFast Processing
  • Flexible Repayment Options
  • Hassle-free & Transparent Process
  • Quick Approval
  • Doorstep Service
  • Attractive Interest Rates 

Plot Loan 

If you come upon a plot for sale that you think makes the perfect location for your future home, then a plot loan can help you take advantage of the opportunity. Unlike home purchase loans that are used to purchase existing, underlying properties, plot loans allow you to purchase land. You can use a plot loan to buy land so that you can build on it in the future. Plot loans can have tenures of up to 15 years.

One of the restrictions on plot loans in India is that they cannot be used to purchase agricultural land. Furthermore, it is quite easy to implement and get approval for plot loans. Generally, it does not take more than a week for your application to be approved. To apply for a plot loan, you must be at least 21 years of age and not more than 60 years old.

1. United Bank of India Plot Loan Interest Rates

In the case of loans for buying land and plot loans, the rate of interest is the same. However, some banks give some higher marks for loans for land purchase than home loans. Banks allow a set time for construction on the plot, and the borrower is required to present a construction certificate to the bank. If the borrower does not build on the plot within the period from the date of the first disbursement, the structure of land loan interest rates changes from a home loan to a loan against property for the borrower.

2. Plot Loan to Value Ratio‭ (‬LTV‭)‬

Loan to value or LTV means the amount of loan that a borrower will get against his property. LTV in case of grant of loan for the purchase of land with construction. , Is quite low and can be capped at a maximum of 70% of the land value. In the case of home loans, LTV is between 75% to 90%.

3. Time Period

Land loans have a relatively long tenure of 15 years than those in home loans with a longer tenure of 30 years. Therefore, the EMI in terms of loans for plot purchase is higher than that of regular home loans. The tenure for a land loan also depends on the age, repayment capacity, etc. of the borrower.

4. Tax Benefits

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

5. Prepayment Penalty

A floating-rate loan sanctioned to individual borrowers if the prepayment penalty is exempt if a borrower wishes to repay the loan. However, a land loan like a home loan can attract a prepayment charge of 2.4% of the prepaid amount if taken by a non-individual borrower. A borrower should read the loan agreement carefully and clear the foreclosure fee of the loan before signing the agreement.

Types of Plot Loans United Bank of India Provides  

United Bank of India Plot Loan and Plot + Construction Loan

Plot loan

A loan for plot purchase can only be taken for the purchase of an empty residential plot or a piece of land, which can then be used for the purpose of building a house or for investment. The property must be located within the municipal or corporate limits. This type of loan is a high-risk loan. However, it mainly depends on factors like employment type, loan amount for plot purchase, and loan type.

Plot + Construction Loan

This loan is taken to purchase residential plots and build a house on the property within the stipulated time. If a borrower does not start construction within a specified period, the bank may increase the interest rate on the loan.

 

United Bank of India Mudra Loan

United Bank of India Plot Loans for Self Employed Individuals 

  • Self-employed individuals can apply for this loan if he/she is looking to:
    • Purchase a plot that is being resold
    • Purchase a plot through direct allotment in a housing society or a developer project
    • Transfer his/her outstanding loan amount availed from another financial institution
  • Customized repayment options offered to the borrower depending on the loan amount, loan tenure, and interest rates provided by the bank.
  • Attractive interest rates offered on the plot loans to make it affordable for the applicants.
  • No hidden costs charged on the loan.

Who can apply for United Bank of India plot loans self-employed?

Individuals can apply for this loan on their own or collectively. The co-applicants for the plot loans must be the proposed owners of the plot. Co-applicants generally comprise of family members and need not be co-owners of the property.

Loan term

  • The maximum tenure up to which one can distribute his payments for his/her loan is 15 years.
  • The loan term depends on the repayment scheme the applicant has opted for.
  • The customer’s profile, age of the plot at the time of loan maturity, age of the customer at the time of loan maturity also play a role in deciding 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 Plot Loans Self Employed

Type of plot loans self-employed:

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

    This loan provides customers a part adjustable-rate term and a part fixed rate term. Under the TruFixed Home Loan, the applicant can avail fixed rate for up to 2/3 years, after which the loan will change to an adjustable-rate loan automatically, summing up to a total of a 15-year loan term.

  • Adjustable-Rate Loan

    The adjustable-rate plot loan is linked to Uinted Bank of India  Retail Prime Lending Rate (RPLR). The interest rate on the loan is revised once every three months if there is a change in the RPLR, taking the date of the first disbursement into account. A rise in the interest rate will result in an increase in the EMI’s interest component which in turn will reduce the principal component. This will extend the loan term, and vice versa, in cases where the interest rate drops.

    United Bank of India  Plot Loan Interest Rates For self-employed professionals

    • Adjustable Plot Rate Loan

      The Retail Prime Lending Rate for self-employed professionals stands at 16.20%

      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

The Retail Prime Lending Rate (RPLR) stands at 16.20%

Loan Slab Home Loan Interest Rates (% p.a.)
For Women* (up to 30 Lakhs) 7.50 to 8
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

United Bank of India  plot loan interest rates for self-employed non-professionals

  • Adjustable-Rate Home Loan

    The Retail Prime Lending Rate (RPLR) stands at 16.20%

    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

    The Retail Prime Lending Rate for self-employed non-professionals holds at 16.20%

    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

United Bank of India plot loan documents required for salaried individuals

Here are the documents you will have to submit for all applicants and co-applicants along with the signed application form for the approval of your loan:

Purpose Documents
Proof of identity and residence (Any 1)
  1. Voter ID Card
  2. Valid Driving Licence
  3. Aadhaar Card
  4. Valid Passport
Proof of income
  1. Latest Form 16 and Income Tax Returns
  2. Last six months’ bank statements, showing salary credits
  3. Last three months’ salary slips
Other documents
  1. Own contribution proof
  2. Last six months’ bank statements showing repayment of any ongoing loans.
  3. Employment contract/appointment letter in case current employment is less than a year old
  4. A cheque for processing fee favoring United Bank of India .
  5. Passport size photograph of all the co-applicants/applicants to be affixed on the application form and signed across
Property related documents
  1. Allotment letter/ buyer agreement copy
  2. Title deeds in case of a resale with the previous chain of the property documents

United Bank of India plot loan fees and charges for self-employed

  1. Processing fees:
    • For self-employed professionals: Rs.3,000 or up to 0.50% of the loan amount whichever is higher, and other additional applicable taxes.
    • For self-employed non-professionals: Rs.4,500 or up to 1.50% of the loan amount whichever is higher, and other additional applicable taxes.
  2. 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 United Bank of India deems fit and proper to confirm the source of funds at the time of prepayment of the loan.
    Fixed-Rate Home 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 should submit documents that HDFC 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)
    • The prepayment charges will be 2%, plus applicable taxes and statutory charges and levies of the outstanding amount being so prepaid through refinance from financial institutions or any banks, and will be applicable to all partial/full prepayments.
    • The customer must submit documents that the United Bank of India approves 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 on account of full/partial prepayments for loan sanctioned to individual borrowers. 
    • For loans sanctioned to individual borrowers with a 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 to 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 United Bank of India.  

  3. Conversion fees:

    United Bank of India bank offers its existing customers the privilege of a conversion facility to bring down applicable interest rates on the loan by switching between schemes. One can utilize this facility by paying a fee and choose to either reduce the loan tenure or the EMI. Here are the options of conversions available for the existing United Bank of India 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.

    Cheque dishonor charges:

    If a cheque bounces due to insufficient funds or any other technical reason, such as signature mismatch, their respective bank’s charges for both the defaulter and the payee. For the same United Bank of India charges 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 concerned person depending on the kind of assistance rendered

    Property insurance

     The customer should regularly pay the premium amounts directly to the insurance provider to keep the policy active during the loan tenure.

    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 charges applicable on stamp duty/MOD/MOE/Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI). 

    List of documents:

     Up to Rs.500

    Photocopy of documents:

    United Bank of India Plot Loan

     Up to Rs.500

    Increase/decrease in loan term:

     Up to Rs.500 plus applicable loan term

    Disbursement cheque cancellation charge post disbursement:

     Up to Rs.200

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

     Up to Rs.2000 plus applicable taxes

    PDC swap

    United Bank of India Mudra Loan

     Up to Rs.200

How to Apply for United Bank of India Plot Loan with DialaBank

  • You can apply for the Bank of Baroda Plot Loan at DialAbank conveniently.
  • You just need to fill an online form with the appropriate details and required documents at the DialAbank website itself.
  • Our relationship manager will contact you for any further assistance.
  • We also provide document pick-up services from your home.
  • Just call at 9878981166, for any inquiries.

United Bank of India Plot Loan with Construction Vs Home Loan 

Parameters
Plot Loan with Construction
Regular Home Loan
Loan to Value (LTV) Up to‭ ‬70%‭ ‬of the property value Up to‭ ‬90%‭ ‬of the property value
Plot + Construction Loan interest rates 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. Rate of Interest starts at 6.75%*
Time Period ‬15‭ ‬years 30 years
Prepayment Penalty Zero for individuals Zero for individuals
Tax Benefits Plot loans and interest may be claimed after construction is completed For principal prices under section 80C and interest rates under section 24 (b)

Additional Tips to get United Bank of India Plot Loan easily 

  • Retrieving Your Loans and Income: Lenders ask for proof of income when you apply for plot loans to find out your debt-to-income ratio. Evaluate liquid asset sales like stocks or earn more through a part-time job to increase your annual income. Doing so will increase your debt-to-income rate and increase your chances of getting a loan.
  • Credit Clean-up: The main factor taken into account by lenders is your credit score. Getting a plot loan is more comfortable with a higher credit score. If your credit score is low, you must check your report to see if there are any errors. Sometimes, simple mistakes can damage your score, and if you find any of these, you will have to report them to CIBIL. Restrict your lending: It is risky to ask for more money than you need to meet your financial needs. You should calculate how much amount you need and only apply for that specific amount.
  • Consider a Co-Signer / Guarantee: If you are not able to get a plot loan on your own record, you can apply for one by adding a guarantor or co-signer. The CIBIL score of the guarantor you choose should be good. The main purpose of the guarantor is to ensure that you will repay your loan. However, if you are not able to do so, they themselves are liable to repay the loan. It is beneficial to choose a person with a credit score of over 750 as it will greatly increase your chances of getting a plot loan.
  • Choose the right lender: Talking about income and credit score, each lender has its own set of requirements. In search of a plot loan, choose a lender whose eligibility criteria you can meet and apply accordingly. The problem with using more than one lender is that each of them will check your credit score. Whenever your entire credit report is taken out, your credit score falls, little.

FAQ’s

What is the Plot loan interest rate in the United Bank of India?

The Interest rate starts from 8.00% onwards.

What is the United  Bank of India Plot Loan?

You can use the site loan or plot loan to buy land so that you can build on it in the future or maybe can be your investment for the future to get a great resale value on the plot. Typically plot loans can last up to 15 years but this can be extended by the bank if required. Another limitation of plot loans in India is that site or land loans cannot be used to purchase agricultural land or any land that might be used for farming. Within a week your application will be approved. To apply for a site loan, you must be at least 21 years old and not older than 75 years.

How much processing fee is applicable on the United  Bank of India Plot loan?

For the United Bank of India, the processing fee is 0.59 %.

What is the loan tenure of the United Bank of India  Plot loan?

The South Indian Bank plot loan tenure is usually up to 30 years.

How much EMI per Lakh can be fixed on the United Bank of India  Plot Loan?

The United Bank of India plot loan EMI per Lakh is ₹ 737.

How can I avail plot loan from the United Bank of India?

You can avail of the plot loan only after you are successfully marked eligible by the United Bank of India.

How to Apply for United Bank of India  Plot loan?

You can apply for the plot loan by visiting the website of Dialabank or South Indian Bank.

How to repay the United Bank of India plot loan earlier than the schedule?

Visit the United Bank of India website and check if you are eligible for the earlier payment.

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

Yes, it is allowed by the United Bank of India to repay the loan earlier than scheduled.

✅ How to check South Indian Bank + Plot Loan eligibility?

To properly understand the plot loan eligibility of the United Bank of India plot loan the applicant must visit the website of the United Bank of India or also can contact Dialabank for the same.

What is the United Bank of India  Plot loan phone number?

For the United Bank of India Plot loan, the borrower can call – 9878981166

What is the United Bank of India plot loan interest rate for women?

For women, the United Bank of India plot loan interest rate starts from 7.05%. 

What is the United Bank of India plot loan interest rates for salaried individuals?

For Salaried Individuals 8.05% at United Bank of India.

✅ What is the United Bank of India plot loan interest rates for self-employed individuals?

For Self-Employed 8.05% at United Bank of India.

What is United Bank of India plot loan interest rates for self-employed non-professionals?

 8.05% is the interest rate for the United Bank of India plot loan for Self-Employed Non-Professionals.

 How is a plot loan different from a home loan?

The basic difference can be:

  • Tenure of plot loan is 15 and tenure of home loan is 30 years.
  • Tax benefits for Home loan owners but United Bank of India plot loan owners currently don’t have any Tax benefits.

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

No, it is not allowed to get multiple loans from the United Bank of India.

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

The maximum loan amount is determined by the bank after evaluating the plot documents and profile of the applicant.

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

Yes, a United Bank of India plot loan can be used to purchase plots anywhere within the country.

 What is a Balance Transfer on Plot Loan?

Balance Transfer for United Bank of India plot loan helps you lower your EMIs by transferring your remaining loan to other financial institutions to one that offers a lower interest rate.

 Do I get any tax benefits on a plot loan?

No, currently no tax benefits are provided with the United Bank of India plot loan.

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

For United Bank of India plot loan with Construction please visit the nearest branch or you can also contact the bank for more information regarding the scheme or call Dialabank at 9878981166 for assistance regarding the same.

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