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FAQS

1. What is the IOB-Easy Plot scheme?

The IOB-Easy Plot scheme is a new retail loan introduced by Indian Overseas Bank for the purchase of approved residential plots/sites. It is specifically designed for borrowers who wish to construct a house at a later date, with or without additional bank finance.

2. What is the primary purpose of this loan?

The loan's purpose is exclusively for purchasing approved residential plots/sites for genuine housing needs, not for investment, property dealing, or speculation.

3. Who can apply for the IOB-Easy Plot loan?

Individual Borrowers are eligible, which includes Non-Resident Indians (NRIs) and Indian Overseas Bank Staff/Ex-Staff.

4. Are there any age criteria for applicants?

Yes, the minimum age is 21 years, and the maximum age is 60 years. If an applicant has crossed the age of 55 years, their spouse or another legal heir must be included as a co-applicant.

5. What is the minimum and maximum loan amount I can avail?

The loan amounts vary based on the property location:

• Rural:NIL
• Semi-Urban: Minimum Rs. 10.00 Lakhs, Maximum Rs. 100.00 Lakhs.
• Urban/Metro: Minimum Rs. 10.00 Lakhs, Maximum Rs. 300.00 Lakhs. Only one loan under this scheme can be considered per borrower.

6. What kind of plots are eligible for financing?

The scheme finances the purchase of approved residential plots/sites from:

• State Development/Town Planning Development Authorities or other government-constituted bodies.
• Statutory authorities of Central/State Governments, local authorities (either exclusively or in partnership with the private sector).
• Private colonies and layouts that areduly approved by the statutory authorityof the State Government, where registrations can be effected.
• RERA-approved projects directly from private entities/reputed private builders.
• Residential plots from Government Housing Land Development Authorities (e.g., DDA, LDA, JDA, HUDA) directly or under second sale. It is important to ensureRERA registration compliancewherever applicable. The proposed plot should also beSARFAESI Compliantand mustnot be in unapproved/unauthorized coloniesor those without proper basic amenities like electricity, sewage/sanitation, and water supply.

7. How is the loan disbursed?

• If payments are linked to a development plan (from State/Central/Development Authorities or private builders), the loan will be released in stages, ensuring the borrower's margin at each stage. A tri-partite agreement is entered into in such cases.
• Forready-to-occupy plots, the loan will be released in asingle disbursement, ensuring the borrower's margin.

8. What is the minimum margin required from the borrower?

A minimum margin of 25% on the Accepted Value of the Plot is mandatory, with no deviations

9. What are the income proof requirements?

• Salaried Employees:Salary slips or salary certificates from the employer for thepast 6 months. The applicant must be in confirmed service.
• Self-employed Individuals:Must have been in the same activity for a minimum of 2 years, with2 years of Income Tax Returns (ITRs)filed year on year without a break. Income of family members (Father, Mother, Spouse, Son, Unmarried Daughter) may be considered for higher loan eligibility as co-applicants.

10. Is there a requirement to construct a house on the plot?

Yes, a notarized declaration is mandatory, stating your intent to construct a house on the proposed plot. The house construction must be completed within 5 years from the date of loan release, or earlier if stipulated by a State/Central Development Authority. The house needs to be a complete unit with basic amenities (rooms, toilet/bathroom/kitchen, electricity, water, sanitation) and an approved construction plan. The onus of proving completion lies with the borrower.

11. What happens if I don't complete the house construction within 5 years? If house construction is not completed within 5 years (or an extended period of 6 years for genuine reasons), the Bank is authorized to charge a commercial rate of interest on the loan without prior notice.

12. Are there any incentives for early construction?

Yes, to promote early construction, once the house construction is completed as per an approved plan, the interest rate of your loan can be aligned with the "SUBHAGRUHA" Housing Loan Scheme, based on the prime borrower's CIC score at the time of such migration.

13.Wheather eligibility depends on CIC?

Yes, CIC report to be satisfactory and to meet Banks laid down norms.

14. What are the interest rates for this loan?

Interest rates are linked to the RLLR (Presently 8.35%) and are based on your CIC score.

• For Salaried Borrowers (up to 5 years from master creation):Rates range from RLLR + 1.15% (for CIC-1 score >= 800) to RLLR + 2.15% (for CIC-6 score 680-699).
• For Self-Employed Borrowers:An additional0.10% interestis charged on the applicable ROI.
• For Staff/Ex-Staff:The ROI is RLLR + 0.65% (presently 9.00%).

15. Can the construction period be extended?

Yes, for genuine reasons (e.g., delay in construction plan approval), an extension of another 1 year may be considered upon specific request from the borrower, provided evidence of construction commencement and necessary approvals are submitted. The completion must be ensured within an overall 6-year period.

16. What is the maximum repayment period for the loan?

The maximum repayment period is 15 years or until the Prime Borrower attains the age of 70 years, whichever is earlier. There is no moratorium or holiday period.

17. Are there any prepayment charges?

• ForStaff/Ex-Staff:NILprepayment charges.
• ForNon-Staff with Floating ROI:NILprepayment charges.

18. Are there any charges if I pre-close the loan without constructing a house?

Yes, if you pre-close the loan without completing house construction, penal charges of 2% on the Loan Amount or Outstanding (whichever is higher) plus applicable GST will be recovered. There will be no waiver of these charges, except if you avail a Housing Loan for construction from Indian Overseas Bank.

19. Can I take over an existing plot loan from another bank?

No, takeover of loans from other lenders is not considered under this scheme.

20. What kind of security is required for the loan?

Equitable Mortgage of the Title Deed and other relevant documents, as per Legal Opinion, is required, followed by a Memorandum of Deposit of Title Deed wherever applicable. CERSAI Registration must also be done.

21. Will the Bank inspect the plot after loan disbursement?

Yes, pre and post-sanction inspections will be conducted. The security will be inspected/visited once a year to confirm its availability, monitor house construction, and follow up with the borrower.