The Indian Overseas Bank (IOB) Subha Gruha is a housing loan offered for the purpose of building, buying, or renovating a house or flat. The interest rates on this loan start from 8.50% p.a. with a processing fee of 0.50% of the loan amount.
IOB offers a floating interest rate structure on their housing loans. The interest rates are pegged to the bank’s 1-year Marginal Cost of funds-based Lending Rate or MCLR. The current MCLR of Indian Overseas Bank is 8.50%.
The final interest rate that you are offered will be based on your loan amount.
Find below the interest rates offered on the Subha Gruha Loan:
|Home Loan Amount||Interest Rate|
|Up to Rs.30 lakh||8.50% p.a.|
|Rs.30 lakh to Rs.75 lakh||8.60% p.a.|
|Over Rs.75 lakh||8.75% p.a.|
Here are the myriad features and benefits offered on this housing loan from IOB:
In order to apply for the IOB Subha Gruha home loan, you need to meet certain eligibility criteria. They are as follows:
You need to submit certain documents for your home loan application to be processed:
The maximum processing fee charged on this home loan will depend on the loan amount. For home loans up to Rs.75 lakh, you will be charged 0.50% of the sanctioned loan amount with a maximum charge of Rs.20,000. For sanctioned loan amounts above Rs.75 lakh, you will be charged 0.50% of the amount with a maximum charge of Rs.25,000.
The margin on this loan is between 10% and 25% of the estimated cost which will include the cost of land. This is applicable in case of new as well as old flats/houses. The final margin will be based on your loan quantum.
If you have taken the loan for the purpose of construction, then the holiday period you are offered will be up to 18 months from completion of construction or your first disbursement date, whichever occurs first. If you have taken the loan for purchase, then you will get a maximum of 3 months as your holiday period.
Yes. You need to have comprehensive home insurance for the adequate value when you apply for Sunha Gruha home loan.
No. You will need to download the application form from Indian Overseas Bank’s website, save it to your computer, take a print out, fill in the required information, and submit the form along with all the necessary documents to a bank branch for processing.
Repayments on this housing loan should be made in equated monthly instalments (EMIs).
Yes. You can avail a top up of your existing Subha Gruha home loan. However, you will have to apply for the loan separately and pay the processing fees for the same.
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