The newly launched scheme offers structured financing for the purchase of residential plots approved by central or state development authorities, statutory bodies, or reputed private developers with the necessary regulatory clearances, including RERA-approved projects. It also covers plots allocated by government housing development authorities. The purchased land must be SARFAESI-compliant and situated in a marketable, stable, and easily transferable location, according to a statement.
“The Easy Plot scheme has been designed to provide a convenient, transparent, and structured financing option for customers to purchase approved residential plots, with the flexibility to construct a house at a later stage. This initiative supports genuine housing needs while tapping into a previously underserved market segment, thereby boosting our retail loan portfolio,” said Ajay Kumar Srivastava, Managing Director & CEO of Indian Overseas Bank.
The IOB Easy Plot loan is available to individual borrowers, including Non-Resident Indians (NRIs), aged between 21 and 60 years. Applicants above the age of 55 are required to include a spouse or legal heir as a co-applicant. The repayment tenure extends up to 15 years or until the borrower turns 70, whichever is earlier.
Loan eligibility and limits are based on the property’s location, with a minimum loan amount of ₹10 lakh. The maximum loan amount is ₹100 lakh for semi-urban areas and ₹300 lakh for urban/metro areas, with a minimum margin requirement of 25% on the accepted value of the plot.
A notarized declaration is mandatory from borrowers, affirming their intention to construct a residential dwelling on the purchased plot within five years of disbursement or within the timeline specified by the approving authority. Failure to construct within the specified period will result in a conversion of the loan interest rate to the commercial rate, as per the scheme’s terms.
The interest rate is linked to the bank’s Repo Linked Lending Rate (RLLR) and is determined based on the borrower’s CIBIL score. Upon completion of house construction, customers may migrate to IOB’s standard housing loan rates, subject to submission of completion proof and reassessment of creditworthiness.
The scheme requires a legal opinion from the bank’s empanelled lawyer and a valuation report from an empanelled valuer. An equitable mortgage of the title deed with CERSAI registration is also mandatory. Additionally, the bank will conduct both pre- and post-sanction inspections. The plot must be clearly identifiable, have proper boundaries, and provide easy road access.
