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  • IOB Mortgage Loan

    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 9.80% p.a. with a processing fee of 0.50% of the loan amount.

    Interest Rates

    There are two components that make up the interest rate offered on this housing loan. They are the RLLR and the ‘spread’.

    The bank uses their RLLR to determine the interest rate on your Home Décor loan, which currently stands at 9.80%. 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
    1-year MCLR 6.85%
    Spread 2.95%
    Effective Interest Rate (EIR) 9.80% p.a.

    Features and Benefits

    Here are the features and benefits of this housing loan for your consideration:

    • You can avail this mortgage loan for three purposes:
      • To furnish your home: Purchase kitchen equipment, furniture, room coolers/air conditioners, cots, sink, curtains, bathtubs, showcases, carpets, cupboards, etc.
      • To repair or renovate your apartment.
      • To develop the common area of your apartment.
    • The maximum loan tenure offered is 6 years.
    • The minimum margin on this loan is 25% of the cost. The margin amount will be held as a term deposit by the bank until you close the loan.
    • Loan amount – The maximum loan amount that you will be eligible for will be based on your income:
      • Rs.2 lakh or 5x your monthly income, the lesser of the two and if you offer a third-party guarantee.
      • Rs.10 lakh or 10x your monthly income, the lesser of the two if you offer collateral proportional to the loan amount you’re seeking.
    • Security to be offered:
      • Loan amount between Rs.2 lakh and Rs.5 lakh – Mortgage of the house/flat to be furnished. If the property was purchased with a home loan from IOB, then the mortgage will be extended to cover the Home Décor Loan as well. Also hypothecation of purchased items to the bank will be required.

    Eligibility Criteria

    In order to successfully apply for this home loan, you must meet certain criteria. The same are listed below:

    • You must be employed with confirmed service.
    • You must be below 55 years old.
    • You must own a flat or house.

    Documents Required

    You have to submit certain documents to complete your loan application for the Mortgages – Home Décor Loan:

    • Completed application form.
    • Income proof from you as well as your guarantor.
    • Title Deed copy of your flat/house.
    • If you already have a home loan on your property, a certificate containing the outstanding balance to be submitted.
    • A quotation or estimation of the items you wish to purchase.


    1. What are the minimum and maximum processing fees charged on this home loan from IOB?

      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.

    2. Can I apply for this Home Décor loan if I do not have an existing home loan with IOB?

      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.

    3. Is third-party guarantee necessary for this loan?

      If your loan amount is below Rs.2 lakh, then security in the form of third-party guarantee will be required.

    4. Is monthly income the only criterion that will determine my loan amount for the IOB Mortgage Loan?

      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.

    5. How do I apply for the IOB Mortgage Loan?

      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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