Indian Overseas Bank offers Home Loans for all individuals some are Agriculturists, Youngsters and similar other people from all walks of life at an interest rate of 8.70% – 12.20%. The Loan Term is max. upto 30 years and loan amount is Upto Rs. 2 crores. Pre-payment charges are NIL.
Offers Home Loan cash credit facility where borrower can make loan transaction through his/her IOB Saving / Current Account. Borrower cannot only submit his/her monthly EMIs into the account, but can also park additional amount in addition to the EMIs which results in savings on payable interest rate. This facility is only being offered to the IOB Saving/Current account holders who are maintaining a minimum average balance of Rs. 5000 or have IOB Salary Account. This facility comes with moratorium period as long as 36 months, which is double the moratorium period offered with regular home loan.
Indian Overseas Bank is a good fit for you if?
Existing Customers – This bank Offers special benefits to customers who already have an existing relationship with the bank such as pre-approved home loans. Issues a Pre-approved loan arrangement letter with a validity period of 3 months. However, property papers will be required to be submitted by the borrower within the validity period of pre-approval letter.
Indian Overseas Bank Home Loan at a glance
| Annual Interest Rate | 8.70% – 12.20% |
| Loan Term | Up to 30 Years |
| Loan Amount | Rs. 25,000 – Rs. 2 Crores |
| Time of Funding | |
| Pre-Payment Charges | NIL |
Why Choose Indian Overseas Bank?
No Prepayment Charges – Doesn’t charge any prepayment charges to the home loan borrowers.
Home Loan Cash Credit Facility – Offers Home Loan cash credit facility where borrower can make loan transaction through his/her IOB Saving / Current Account. Borrower cannot only submit his/her monthly EMIs into the account, but can also park additional amount in addition to the EMIs which results in savings on payable interest rate. This facility is only being offered to the IOB Saving/Current account holders who are maintaining a minimum average balance of Rs. 5000 or have IOB Salary Account. This facility comes with moratorium period as long as 36 months, which is double the moratorium period offered with regular home loan.
What to watch out for?
High Top-Up Loan Interest Rate – Interest rate of home loan top-up is equal to 12.20% per annum as compared to regular home loan with 8.70% to 9.05% per annum.
Compare Indian Overseas Bank Home Loans to Other Banks
| Bank Name | Indian Overseas Bank | Central Bank of India | Union Bank of India |
| Typical APR | 8.70% – 12.20% | 8.60% – 9.60% | 8.65% – 12.65% |
| Loan Term | Up to 30 Years | Up to 30 Years | Up to 30 Years |
| Maximum Lending Amount | Rs. 2 Crores | Rs. 75 Lacs and Above | Rs. 2 CroresAbove Rs. 2 Crores in some cases |
| Processing Fee | 0.50% to 0.75% of the loan amount | 0.50% of the LoanMaximum Rs. 20,000 | 0.50% of the loan amountMax Rs. 15000NIL for BSNL Employees |
| Time to Funding | Within 7 working days | Within 5 working days | |
| Pre-Closure | NIL | NIL | Zero to 2% |
Am I Eligible?
- An individual applicant should not be more than 55 years at the time of loan application. The maximum age at the time of loan application can be 60 years where legal heirs is a co-applicant in the home loan.
- Age of the applicant should not be more than 70 years at the time of loan maturity.
- A Salaried applicant should have minimum working experience of 2 to 3 years where job is permanent.
- A Self-Employed applicant should have been active in the current profession for at least 3 years minimum.
- An NRI / PIO must be holding a valid Indian Passport or holding passport of other countries excluding Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan.
- NRI / PIO should have a min salary of Rs. 10,000.
Loan Offerings
Indian Overseas Bank Subhagruha Housing Loan
- Home loan to buy, build or renovate flat/house.
- Borrower can be an individual, group of individuals or members of Co-operative Societies.
- Avail up to 75% to 90% of the cost of the house/flat excluding Registration and Documentation charges. The amount depends on your age and repayment capacity.
- Avail up to 30% of the loan amount for purchase of plot.
- Margin money of 10% to 25% of the estimated cost of the property.
- Tenure up to 30 years.
- Interest rate equal to 8.70% per annum for loans up to Rs. 30 Lacs.
- Interest rate equal to 8.80% per annum for loans above Rs. 30 Lacs to up to Rs. 75 Lacs.
- Interest rate equal to 8.95% per annum for loans above Rs. 75 Lacs.
- Moratorium period (repayment holiday period) can be maximum as long as 18 months from the date of first disbursal or the date of completion of the construction (in case of construction loan), whichever is earlier.
- If funds are being used for purchasing a ready built house/flat, the moratorium period is equal to 3 months.
- Security in the form of equitable mortgage of the property is necessary, where should have a clear and marketable title as well as comprehensive insurance equal to the property value. However, IOB can also accept additional security in the form of NSC, LIC, Units of UTI.
- Processing charges are equal to 0.50% of the loan amount, subject to max Rs. 20,000 in case of loan up to Rs. 75 Lacs and max Rs. 25,000 in case of loan above Rs. 75 Lacs.
Documents required for Salaried:
- Salary certificate
- Agreement for sale of house/flat.
- Estimates for Construction/Valuation Report for Acquisition/Legal opinion on the Property from Bank approved Engineer/Lawyer.
Documents required for Self-Employed:
- .ITR / Business Account Statement.
- Agreement for sale of house/flat.
- Proof for continuity in the current profession/business.
- Estimates for Construction/Valuation Report for Acquisition/Legal opinion on the Property from Bank approved Engineer/Lawyer
Documents for Members of Co-operative Societies
- Proof of membership
Indian Overseas Bank NRI Housing Loan
- Home loan to NRIs / PIOs for purchasing a ready built property, construction of the property or repair/renovation of a self owned property.
- Avail maximum up to 80% of the cost of the property in case of purchasing a ready built property or construction of the property.
- Avail maximum up to Rs. 15 Lacs for repair / renovation of an existing property.
- Margin money equal to 10% of the loan amount is mandatory where applicant has applied for loan amount of up to Rs. 20 Lacs.
- Margin money equal to 20% of the loan amount is mandatory where applicant has applied for loan amount of above Rs. 20 Lacs to up to Rs. 75 Lacs.
- Margin money equal to 25% of the loan amount is necessary where applicant has applied for loan amount of above Rs. 75 Lacs.
- Security in the form of equitable mortgage of the property is necessary, where property is insured for adequate value with Bank clause. Apart from it, registered memorandum in states is also necessary, wherever it is applicable.
- Tenure up to 15 years in case of is bought or built.
- Monthly EMI should be paid through fresh foreign inward remittance or by debiting NRE/NRO/FCNR account in India. However, EMI, interest and other charges can also be paid by close relatives of the NRI borrower resident in India, through their bank account.
- If the house is rented out, rental income should be adjusted towards loan installments, even if it is more than the prescribed EMI.
- Moratorium period of 6 months from the date of disbursal in case of property being purchased.
- Moratorium period of 18 months from the date of disbursal in case of property being constructed.
- Moratorium period of 3 months from the date of disbursal in case of property being repair / renovated.
- Interest rate equal to 8.70% per annum for loans up to Rs. 30 Lacs.
- Interest rate equal to 8.80% per annum for loans above Rs. 30 Lacs to up to Rs. 75 Lacs.
- Interest rate equal to 8.95% per annum for loans above Rs. 75 Lacs.
- Processing charges are equal to 0.57% of the loan amount, subject to maximum of Rs 15,000.
Indian Overseas Bank Home Improvement Loan
- Loan for repair or renovation of self-owned house/flat such as routine repairs, painting, rewiring, changing the tiles, fixing marbles, making additions such as cupboards, doing woodwork etc.
- Avail min Rs. 25,000 to max Rs. 15 Lacs.
- Interest rate is equal to 8.90% per annum for loans up to Rs. 2 Lacs and 9.05% per annum for loans above Rs. 2 Lacs.
- Tenure up to 12 Years, subject to the retirement age of the borrower.
- Moratorium period of 3 months from the date of disbursal.
- Security in the form of mortgage of the property being renovated. If this property can not be mortgaged for any reason, any other property in the name of the borrower with a market value twice that of the loan amount is to be mortgaged.
- Processing charges are equal to 0.50% of the loan amount, subject to max Rs. 20,000 in case of loan up to Rs. 75 Lacs and max Rs. 25,000 in case of loan above Rs. 75 Lacs.
Indian Overseas Bank Subhagruha Top-Up Loans
- Additional funds for all home loan borrowers who have a satisfactory repayment period of at least 1 year.
- Borrower can only apply for the additional funds if he/she have already completed a minimum of 1/3rd of the existing home loan tenure.
- Avail additional funds from min Rs. 50,000 to up to Rs. 2 Crores.
- Margin money is equal to 50% of the loan amount in case of immovable properties.
- Margin money is equal to 25% of the loan amount in case of other properties such as NSC/KVP/UTI, etc.
- Margin money is equal to 10% of the loan amount in case of Life policies (on surrender value).
- Processing charges are equal to 0.75% of the loan amount.
- Interest rate equal to 12.20% per annum.
- Tenure would be equal to the residual period of the existing home loan. Subject to the maximum age of the borrower equal to 70 years.
Indian Overseas Bank Subhagruha GEN Next Housing Loan
- Instant Home loan for young borrowers, coming up with 20% higher loan amount than the regular home loan.
- An eligible applicant can be a salaried employees of private sector companies / MNCs / Government undertakings / PSUs and Government employees, having a minimum monthly Salary of Rs. 30,000 or above.
- Age of the applicant should be between 21 years to 45 years.
- Margin money of 10% to 25% of the estimated cost of the property.
- Tenure up to 30 years including moratorium period.
- Moratorium period can be maximum as long as 36 months from the date of first disbursal.
- Security in the form of equitable mortgage of the property is necessary, where should have a clear and marketable title as well as comprehensive insurance equal to the property value.
- Processing charges are equal to 0.50% of the loan amount, subject to max Rs. 20,000 in case of loan up to Rs. 75 Lacs and max Rs. 25,000 in case of loan above Rs. 75 Lacs.
- Interest rate equal to 8.70% per annum for loans up to Rs. 30 Lacs.
- Interest rate equal to 8.80% per annum for loans above Rs. 30 Lacs to up to Rs. 75 Lacs.
- Interest rate equal to 8.95% per annum for loans above Rs. 75 Lacs.
Documents required for Salaried:
- Salary certificate
- Agreement for sale of house/flat.
- Estimates for Construction/Valuation Report for Acquisition/Legal opinion on the Property from Bank approved Engineer/Lawyer.
Documents required for Self-Employed:
- ITR / Business Account Statement
- Agreement for sale of house/flat.
- Proof for continuity in the current profession/business.
- Estimates for Construction/Valuation Report for Acquisition/Legal opinion on the Property from Bank approved Engineer/Lawyer.
Documents for Members of Co-operative Societies
- Proof of membership
Indian Overseas Bank Home Loan Rate of Interest
| Home Loan Type | Applicable Interest Rate |
| IOB Subhagruha Housing Loan | 8.70% – 8.95% per annum |
| IOB NRI Housing Loan | 8.70% – 8.95% per annum |
| IOB Home Improvement Loan | 8.90% – 9.05% per annum |
| IOB Subhagruha Top-Up Loan | 12.20% per annum |
| IOB Subhagruha GEN Next Housing Loan | 8.70% – 8.95% per annum |
How to Apply for Indian Overseas Bank Home Loan?
At Indian Overseas Bank Branch
- Click here to download application form for Subha Gurha Home Loan. To download application form for NRI Home Loans, click here. To download the application form for Home Improvement Loan, click here.
After I Apply?
Through Customer Care: Dial 1800-425-4445
Once I’m Approved?
Fees & Penalties
| Type of Charges | Applicable Charges |
| Processing Charges | 0.50% of the loan amountMax Rs. 20,000 for loans up to Rs. 75 Lacs and Max Rs. 25,000 for loans above Rs. 75 Lacs. NRIs / PIOs:0.57% of the loan amountMax Rs. 15,000 For Top-up Loans:0.75% of the loan amountMax Rs. 25,000 |
| Foreclosure Charges | NILFor Floating Rate Home Loans 2% of the prepaid amountFor Fixed Rate Home Loans |
| Part-payment Charges | NILFor Floating Rate Home Loans 2% of the prepaid amountFor Fixed Rate Home Loans |
| Copy of Property Documents | Rs. 1000If presence of bank official is required Rs. 500In other cases |
FAQs
What is the MCLR rate applicable on home loan?
One Year MCLR rate equal to 8.70% is applicable on home loan interest rate.
Net Take-home pay?
Net take-home pay should not be less than 50% of the gross income.