Indian Overseas Bank Home Loan

Indian Overseas Bank Home Loan Details

Indian Overseas Bank (IOB) offers customers a range of home loan options, applicable to resident Indians and non-resident Indians (NRIs). The bank also offers a home loan product specifically designed for relatives of NRIs. Choose a tenure of up to 30 years with no penalty charged on prepayments.

To know the specific processing fee charged on different home loans offered by IOB, visit Home Loan Processing Fee.

Indian Overseas Bank Home Loan Interest Rates 2023

IOB offers floating-rate home loan packages pegged to their 1-year MCLR rate. The interest rates vary based on the loan type and loan amount. Here are the interest rates charged by the bank on their home loan products:

Compare: Home Loan Interest Rate all Banks

Indian Overseas Bank is a major bank based in Chennai (Madras), with about 3350 domestic branches, 3 extension counters and six branches overseas. Indian Overseas Bank has an ISO certified in-house Information Technology department, which has developed the software that 3257 branches use to provide online banking to customers; the bank has achieved 100% networking status as well as 100% CBS status for its 3350 branches.IOB offers home loans from 75% to 90% of the cost of the house/flat(including the cost of the land).depending upon the loan quantum. Read on to learn about the eligibility and documentation requirements for the loan you avail.

Features & Benefits of IOB Home Loan:

• Available to individuals and groups: This loan scheme is not only open for individual applicants, but also to groups of individuals and members of co-operative societies. The age cap is frozen at 55 years, extendable to 60 years if legal heirs are available to join as co-applicants.
• Loan purpose:IOB makes this loan available for a wide range of housing needs such as buying a house/flat/plot and for renovation of existing house/flats under its Home improvement loan scheme.
• High quantum of loan offered: You can look forward to getting a funding of 70% to 90% of the costs involved in buying the home, which includes registration and documentation charges. Around 30% of the loan amount is provided for the purchase of the plot. The quantum of the loan offered is dependent on age and repayment capacity. This implies a margin of 10 to 25%, ensuring little burden on the borrower.
• Flexible payment term options:IOB offers you up to 30 years to repay the loan amount along with applicable interest charges in EMIs (Equated Monthly Installments). You’re free to choose a term of your choice as per your convenience.
• No Prepayment charges: The most outstanding benefit of availing a home loan from IOB is that you can consider paying off the loan anytime during the term since the bank does not bill penalty for early repayment.
• Holiday period: You can also look forward to a high quantum of holiday period depending on the property involved. A maximum of 18 months is offered as holiday period on construction loan (from date of loan disbursement or construction completion date, whichever is earlier) or 3 months in case of house purchase.

IOB Home Loan Eligibility Criteria:

• Individual applicants should not be older than 55 years at the time of application.
• Group of individuals or members of co-operative societies.
• Salaried individuals should be in a permanent job with atleast 2-3 years in service.
• Self-Employed individuals should be in the relevant field for at least 3 years.

IOB Home Loan Documentation:

• Application form in the required format.
• Salary certificate/payslips for salaried applicants.
• Proof of income such as ITR & bank statements for self-employed applicants.
• Experience proof supporting the line of business for non-salaried individuals.
• Sale agreement of house/flat.
• Co-operative societies must submit proof of membership.
• Construction estimates, Valuation Report, Legal Opinion from approved lawyer/engineer.

Note: The form can be downloaded from the website of IOB or be obtained from the nearest banking branch.

Compare Best IOB Home Loan Offers

1. IOB Home Loan – Subha Gruha Home Loan

   Owning a home is everybody’s dream since it has a dual benefit of not only ensuring shelter for self and loved ones but also acts as an investment instrument offering us attractive returns over a period of time. More often than not, meeting the costs of procuring a home or a piece of land often comes by means of financing by taking a loan from a bank since it may not be affordable outright, owing to the costs involved in procuring one.

   Being a leading public sector banking institution in the country, IOB’s Subha Gruha home loan scheme can be the ideal partner for funding your housing dream. This loan is available for a wide range of housing requirements, open for application to the likes of resident Indians as well as NRIs.

2. IOB Home Improvement Loan

   Apart from the regular home loans, IOB also offers financing for home improvement as a separate scheme. The purpose of this loan consists of a variety of activities such as repairs & renovation, painting, rewiring, replacing tiles and marbles, carpentry work and so on.

   Highlights:
   • The loan quantum ranges from Rs.25,000 up to Rs.15 lakh, disbursed depending in the requirement and repayment capacity of the applicant.
   • The borrower can repay the loan in up to 144 (12 years) Equated Monthly Installments (EMIs), depending on what he/she chooses at the time of signing up for the loan.
   • The rate of interest applicable is the same as the table provided in the interest rate section of this article.
   • The repayment is activated only after expiry of 3 months from the date of loan (holiday period).
   • The security is in the form of mortgage, where the house/flat renovated will act as collateral until full repayment of the loan.
3. IOB NRI Home Loan

   The bank also offers housing loan for NRIs (Non-Resident Indians) through its NRI Home Loan scheme. It is offered to NRIs with a valid Indian passport or PIO (Person of Indian Origin) holding passport from countries except Pakistan, Afghanistan, Sri Lanka, Bangladesh, Nepal, Iran, Bhutan and China.

   Highlights:
   • The purpose of this loan is to help NRIs financially in buying, building or renovating houses.
   • The maximum loan quantum offered for building or buying a new house is up to 80% of the costs involved. A cap of Rs.15 lakh is offered for home renovations.The margin for the borrower varies between 10 to 25% of the project costs.
   • The repayment tenure offered is up to 15 years, flexible on the basis of the requirement of the borrower. Repayment is in the form of EMIs.
   • The processing fee is charged at the rate of 0.57% of the loan amount, up to a maximum of Rs.15,000.
   • The rate of interest applicable is the same as the table provided in the interest rate section in this article.

FAQs on IOB Home Loan

1. Is there a processing fee charged by IOB on the home loan offered for resident Indians?

   Yes, there would be an upfront fee payable for processing of the loan application depending upon the loan amount. For loan amounts ranging between Rs.25,00 to Rs.2 lakh the processing fee charges is Rs.550. From Rs.2 lakh to Rs.150 crore the customer will be charged 0.45% of the loan amount. From Rs.150 crore to Rs.500 crore the processing charge is Rs.50 lakh plus 0.15% of the loan amount and for amount above Rs.500 crore the processing charge is Rs.100 lakh plus 0.10% of the loan amount.

2. Does IOB require additional security in any other form to secure the loan amount?

   Yes, you may be required to provide additional security in the form of NSC, LIC or Units of UTI.

3. How is the EMI payment debited for NRI home loan borrowers?

   The EMI payment can either be made through foreign inward remittance or by way of debit from NRE/NRO/FCNR account.

4. Is there a cap on the age of the applicant before which the loan should be fully paid off?

   Yes. The loan must be liquidated before the applicant attains 70 years of age.

5. What should be the minimum credit score to avail IOB home loan?

   There is no specified cut-off credit score for home loan applicants of Indian Overseas Bank. To avail a home loan at lower interest rates applicants must have a credit score of 750 or above.

6. What are the factors that determine the eligibility of IOB home loan amount?

   The income, repayment capacity and the actual estimate of work of the applicants determines the loan amount eligibility of Indian Overseas Bank.

7. Can family members be added as co-guarantors of IOB home loan?

   Yes, any of your immediate family members can be added as co-guarantor by applying for a joint IOB home loan.