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  • IOB Subha Gruha Home Loan

    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 9.25% p.a. with a processing fee of 0.50% of the loan amount.

    Interest Rates

    IOB offers a floating interest rate structure on their housing loans. The interest rates are pegged to the bank’s RLLR. The current RLLR of Indian Overseas Bank is 6.85%.

    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.1 crore 9.25% p.a.
    Over Rs.1 crore 9.75% p.a.

    Features and Benefits

    Here are the myriad features and benefits offered on this housing loan from IOB:

    • You can use the loan amount to build, buy, or renovate a house/flat.
    • Get financing between 10% and 25% of the cost of the flat or house. For purchase of a plot, get up to 30% of the cost.
    • Choose from loan tenures of up to 30 years.
    • This loan offers holiday periods before you start making repayments.
    • Security – the property which will be purchased or renovated will be used as a security. The property must be in your name or in the name of the co-applicant along with you.
    • Low processing charges of 0.50% of the loan amount.

    Eligibility Criteria

    In order to apply for the IOB Subha Gruha home loan, you need to meet certain eligibility criteria. They are as follows:

    • Individuals, groups of individuals, and members or Co-operative Societies are eligible to apply.
    • Salaried and self-employed individuals can apply.
    • You will have to maintain a minimum balance of Rs.5,000.
      • The land/property should be in your name (the applicant). If it is held jointly with your spouse, then they have to be a co-applicant on the loan.
      • You should have a marketable title on the property.
      • Additional security may be required/accepted in the form of LIC, Units of UTI, and NSC.

    Documents Required

    You need to submit certain documents for your home loan application to be processed:

    • Application form.
    • Sale Agreement of the house or flat.
    • Legal opinion on the property from an engineer or lawyer approved by the bank.
    • For acquisition – Valuation Report.
    • For construction – Estimate of construction.
    • For salaried employees – Salary certificate as proof of income and experience proof in your line of activity.
    • Self-employed – Business persons, professionals, etc. have to submit proof of income.
    • Co-operative Society members – Submit your proof of membership.


    1. What is the maximum processing fee charged on the IOB Subha Gruha home loan?

      The maximum processing fee charged on this home loan will depend on the loan amount. For home loans up to Rs.1 crore, 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.1 crore, you will be charged 0.50% of the amount with a maximum charge of Rs.25,000.

    2. What is the margin on this home loan?

      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.

    3. What are the holiday periods offered under this housing loan?

      If you have taken the loan for the purpose of construction, then the holiday period you are offered will be up to 36 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.

    4. Do I need to have insurance on the property when applying for this home loan?

      Yes. You need to have comprehensive home insurance for the adequate value when you apply for Sunha Gruha home loan.

    5. Can I submit the application form online to apply for this 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.

    6. How do I make repayments on this home loan?

      Repayments on this housing loan should be made in equated monthly instalments (EMIs).

    7. Can I get a top-up on my home loan amount?

      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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