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.
|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|
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.
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.
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.
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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