The Mortgages – Home Décor home loan is especially meant for furnishing your existing home. It can be used to purchase furniture, air conditioners, kitchen equipment, cupboards, linen, and more. You can also use the loan amount to renovate or repair your apartment and/or for development of the common area of your house. The interest charged on this home loan is 11.25% p.a. with a processing fee of 0.50% of the loan amount.
There are two components that make up the interest rate offered on this housing loan. They are the MCLR or the Marginal Cost of funds-based Lending Rate and the ‘spread’.
The bank uses their 1-year MCLR to determine the interest rate on your Home Décor loan, which currently stands at 8.50%. A ‘spread’ will be added to the -1-year MCLR to determine your final interest rate on this home loan.
Find below the interest rate charged on this loan:
|Loan Amount||All loan amounts|
|Effective Interest Rate (EIR)||11.25% p.a.|
Here are the features and benefits of this housing loan for your consideration:
In order to successfully apply for this home loan, you must meet certain criteria. The same are listed below:
You have to submit certain documents to complete your loan application for the Mortgages – Home Décor Loan:
The processing fee charged on this loan is 0.50% of the loan amount with a maximum fee of Rs.20,000. However, the processing fee is waived for Airforce personnel.
Yes. If you have purchased your property through financing from another lender, you will still be eligible for the Home Décor loan from IOB. However, you must submit a no lien letter from the financial institution for your loan to be approved. This is applicable irrespective of your loan amount.
If your loan amount is below Rs.2 lakh, then security in the form of third-party guarantee will be required.
No. Other criteria will be taken into consideration such as your current debt obligations. Your EMI on this loan and your existing home loan should not exceed 60% of your gross pay.
You will have to visit the bank’s website and download the application form. Then take a print out of the form, fill in the details, and submit it to your nearest IOB branch along with the necessary documents.
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