A "low interest" loan shouldn't mean you have very little interest in paying it back!
  • Oriental Bank of Commerce Plot Loan

    Oriental Bank of COmmerce is a renowned bank that provides an array of services including plot loans. Its competitive pricing and versatile repayment schemes have made this organisation a go to bank for plot loans.

    It is known that banks provide home loans to buy either apartments or house (constructed or under-constructions) or a piece of land for that purpose. Investing in land is quite common as it appreciates considerably with time. Getting a loan for purchasing a plot is quite a hassle-free affair at Oriental. As a Government of India undertaking, Oriental Bank of Commerce is quite encouraging towards prospective plot/ land buyers. But certain conditions and guidelines have to be met. For instance, most banks only provide plot loan for constructing a house in it. And the interest rates can escalate alarmingly after the time allowed for that.

    Features of Oriental Bank of Commerce Land Loan:

    Particulars In Detail
    Purpose of Oriental Land Loan To buy a plot solely for the purpose of building a house there. To buy land for the purpose of expanding the residence.
    Eligibility Criteria One or more applicants with a steady source of income viz. salaried, entrepreneurial, independent professionals, businessmen, agriculturalists etc.
    Minimum Age Should be aged 18 and above
    Maximum Age For salaried with retirement pension & other individuals: Up to age 70 For Salaried ( without pension): Up to age 60 or retirement, which is before
    Maximum Loan Limit · Not specified.
    Margin Up to INR 30 lacs 10 percent
    between INR 30 lacs and INR 75 lacs 20 percent
    More than INR 75 lacs 25 percent
    For furnishing the house 25 percent of the overall cost of renovation/ furnishing
    Total Take Home Salary/ Income Gross yearly income excluding deductions & proposed loan installment:
    Gross Annual Income Net Take Home
    Up to INR 5 lacs 50 percent
    Between INR 5 lacs and INR 10 lacs 40 percent
    More than INR 10 lacs 30 percent
    Primary/ Collateral Primary: Equitable/ Registered Mortgage of bankrolled property or that is to be furnished. Collateral: Zero
    Rate of Interest (floating) 9.50 percent
    Interest switchover option to current customers During the tenure of home loan, if the debtor feels that the present card rate of the loan is in his/ her favour as compared to actual interest applied in the account, the switchover option can be utilized.
    Waivers No penalty for prepayment, no added fees for documentation or any upfront fee
    Repayment Period Up to 360 months as it is for home loan

    Documentation required for Oriental Bank Land Loan:

    • A duly filled land loan application form
    • Passport sized photo of applicant (co-applicant & guarantor, if applicable)
    • ID proof: Voters ID, PAN Card, Driving License, Aadhar Card etc.
    • Address proof: Rental/lease agreement, latest utility bill, Ration Card etc.
    • Age proof: Election ID, Aadhar Card, SSLC Book, Driving License etc.
    • Income proof: Salary Certificate, Income Tax Return (of the previous 2 years), Bank Statements etc.
    • For Farmers: Record of land holding & harvesting pattern or other income proofs.
    • Property-related papers: Title clearance report from lawyer and valuation report from architect (decided by the bank).
    • Any other document/paper requested by the bank.


    1. On what basis will Oriental Bank of Commerce decide my eligibility for their land loan?

      They will assess your plot loan eligibility based on your income and ability to repay. Other main factors entail your age, qualification, co-applicant’s income, number of dependents, previous loans (if any) and CIBIL Report among others.

    2. What is the benefit of choosing fixed rate of interest for the Oriental Bank of Commerce Land Loan?

      By fixed rate of interest, they mean that the interest rate remain unchanged throughout the tenure regardless of the market fluctuations. This is a pretty unpredictable option as the rate can hike or dip anytime. In case you want to switch to floating rate, you need to discuss this with the bank.

    3. Do you think floating rate is a better option?

      This is difficult to answer as the rate of interest that varies as per the current market lending rate. This also comes with the same risk. You could end up paying more if the rate increases suddenly.

    4. I do not understand the concept of ‘market value’ here. Can you elaborate?

      Market value is nothing but the assessed cost of the land at present. These rates can fluctuate on the basis of many factors such as infrastructure, livability, accessibility to major city points and so on. 


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