iob_bank_bhumilakshmi

Last Updated:07/02/2026
Bhumi lakshmi

BHUMILAKSHMI – (LAND PURCHASE SCHEME)

   

Objective

To finance the sharecroppers / tenant farmers to purchase land to enable them to increase their income

To bring fallow lands and waste lands under cultivation

To step up agricultural production and productivity

To make the small and marginal holdings economically viable

Nature and
Purpose of
Advance

Term loan for purchase of land to Small and Marginal Farmers / Sharecroppers / Tenant farmers to possess and cultivate land.

Quantum of Loan

Minimum- No minimum

Maximum- 10.00 Lakhs

Eligibility

Small and marginal farmers/ Sharecroppers / Tenant farmers and Total land owned by the borrowers including the land to be purchased under the scheme should not be more than 5 acres of unirrigated land or 2.50 acres irrigated land.

Security

The land purchased out of the bank finance and mortgaged in favour of the bank will form the security for the loan from borrowers.

Margin

Up to Rs. 2.00 Lakhs: Nil

Above Rs 2.00 Lakhs: 10%

Repayment

Maximum 12 years including moratorium period

Holiday Period

Maximum 24 months

Rate of Interest

Internal rating

Benchmark

Strategic Premium

Risk Premium

Total Spread

Effective ROI*

Rating-IOB 1

1 Y MCLR

0.20%

1.10%

1.30%

10.15%

Rating-IOB 2

1 Y MCLR

0.20%

1.20%

1.40%

10.25%

Rating-IOB 3

1 Y MCLR

0.20%

1.40%

1.60%

10.45%

Rating-IOB 4

1 Y MCLR

0.20%

1.60%

1.80%

10.65%

Rating-IOB 5

1 Y MCLR

0.20%

2.00%

2.20%

11.05%

Rating-IOB 6 and above

1 Y MCLR

0.20%

2.25%

2.45%

11.30%

*1Y MCLR - 8.85% at present

Processing Charges

Up to Rs. 50,000/- Nil

Above Rs. 50,000/- up to Rs. 3 Lakhs - 0.30% of the loan amount

Above Rs. 3 Lakhs - 0.71% of the loan amount