Are you planning to buy a residential plot but unsure about financing? The Indian Overseas Bank (IOB) has introduced the IOB Easy Plot Loan Scheme 2025, specifically designed to help individuals purchase government-approved residential plots with an intent to construct homes in the future. Whether you're in a semi-urban town or a metropolitan area, IOB offers tailored funding solutions up to ₹3 crore.
| Feature | Details |
|---|---|
| Scheme Name | IOB Easy Plot Loan Scheme 2025 |
| Launched By | Indian Overseas Bank |
| Loan Amount | ₹10 lakh to ₹1 crore (semi-urban) / up to ₹3 crore (metro) |
| Interest Type | Floating (linked to RLLR) |
| Margin Requirement | Minimum 25% of the plot value |
| Repayment Tenure | Up to 15 years or until borrower turns 70 |
| Construction Deadline | Must build a house within 5 years of loan sanction |
| Application Mode | Online via IOB official website |
| Eligibility | Indian Residents and NRIs, aged 21–60 (up to 70 with co-applicant) |
| Processing Fee | Waived till 31 March 2025 |
| Official Website | https://www.iob.in |
| Toll-Free Helpline | 1800 890 4445 / 1800 425 4445 |
This scheme empowers citizens to buy residential plots and construct homes later, without the burden of high upfront payments. The flexible repayment period, attractive loan limits, and minimal documentation make it ideal for salaried individuals, self-employed professionals, and NRIs.
Before applying, make sure you fulfill the following conditions:
Age Limit: 21 to 60 years (Applicants above 55 must include spouse/legal heir as co-applicant)
Nationality: Indian Residents or NRIs
Plot Type: Should be in a SARFAESI-compliant, marketable, and legally transferable area
Purpose: Must intend to construct a house within 5 years of purchase
The loan interest is based on the RLLR (Repo Linked Lending Rate) and your CIBIL score.
| Component | Rate (as of June 2025) |
|---|---|
| RBI Repo Rate | 5.50% |
| IOB Markup | +2.85% |
| Effective RLLR | 8.35% |
| Effective Base Rate | 10.00% (w.e.f. 15 Aug 2024) |
| 1-Year MCLR | 9.10% (w.e.f. 15 Jan 2025) |
Processing fees for home and vehicle loans are waived till 31 March 2025.
Loan Amount: ₹10 lakh to ₹3 crore depending on location
25% Margin: You pay only 25% upfront, rest covered by IOB
Construction Flexibility: You have up to 5 years to begin construction
Long Repayment Tenure: Up to 15 years or age 70 (whichever is earlier)
Interest Rate Linked to CIBIL: Better credit = lower rate
Joint Application Option: Spouse or legal heir can co-apply
To apply online, keep the following documents handy:
Aadhaar Card (for KYC)
PAN Card
Passport-size photograph
Bank account details (IOB or any other bank)
Income proof (salary slips, ITRs, bank statements)
Property-related documents (if pre-identified)
Here’s a step-by-step guide:
Visit the official IOB website.
Look for the “Loans” section and select “Easy Plot Loan” from the menu.
Click on “Apply Now”. You’ll be redirected to an application form.
Fill in all the required personal and property details. Upload scanned copies of the required documents.
Submit the form. An IOB representative will contact you for the next steps.
For help, call IOB toll-free at 1800 890 4445 / 1800 425 4445
Compare the IOB interest rate with other banks for plot loans
Make sure the plot is within municipal limits and legally cleared
Maintain a good credit score (700+) to secure better terms
Ensure you can start construction within 5 years to avoid default
The IOB Easy Plot Loan Scheme 2025 is a smart solution for individuals looking to invest in land now and build a home later. With loan amounts up to ₹3 crore, waived processing charges, and flexible repayment options, this scheme offers both affordability and convenience.