A "low interest" loan shouldn't mean you have very little interest in paying it back!
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    Indian Overseas Bank Home Loan

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    9.55% - 9.8% Floating
    0.53% (max. ₹13,350) One time fee
    75% to 90% of the cost
    30 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Eligibility Criteria

    Indian Overseas Bank Home Loan is Rated as "Great!" by 14 Users

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    Home Loan BYTES FROM OUR KITCHEN

    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.


     

    You’re probably eligible for an IOB Home Loan if you are

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    IOB Home Loan Minimum Age

    At least 21 years old

    IOB Home Loan Maximum Age

    Less than 55 years old

    IOB Home Loan Eligible Employment Type

    Salaried or self-employed
    with regular income

    IOB Home Loan Minimum Income

    Earn more than the minimum
    income required


     

    Your IOB Home Loan amount eligibility is based on these factors

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    IOB Home Loan Minimum Salary

    Earn more than the minimum
    income required

    IOB Home Loan Maximum Loan to property value

    Loan capped @ 75% to 90% of property value

    IOB Home Loan EMI

    EMIs of other loans lower
    your eligibility


     

    Increase your eligible IOB Home Loan amount by these steps

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    IOB Home Loan Add Spouse as Co-applicant

    Make your spouse a co-applicant,
    and her income will add
    to your eligibility

    IOB Home Loan Maximum Tenure

    Choose longer tenure loan up to 30 years

    IOB Home Loan Add parents as Co-applicant

    Alternatively add your parents


     

    Documentation needed to apply for an IOB Home Loan

    • 1. Signed application form with photograph
    • 2. Latest bank statements
    • 3. Processing fee Cheque
    • 4. ID and residence proof
    • 5. Documentation for salaried applicants:
      • Last 3 years Income Tax Returns with computation of Income
      • Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account
    • 6. Documentation for self-employed applicants:
      • latest income tax returns
      • latest comupation of income

     

    IOB Home Loan Interest RatesUpdated on 27 Sep 2016

    IOB Home Loan Details
    Interest Rate 9.55% to 9.80%
    Processing Fees 0.53% of the loan amount- maximum of Rs. 13350
    Loan Tenure 30 years
    Pre-closure Charges Nil

     

    Indian Overseas Bank - 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.

    Feature & 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 up to 90% of the costs involved in buying the home, which includes registration and documentation charges. The quantum of 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 interest rate:

    The interest rates offered by IOB are affordable and transparent. It follows the MCLR concept mandated by the RBI to arrive at applicable rates for home loans. The table below provides a breakup of rates applicable for a combination of loan amount and repayment term. The benchmark 1-year MCLR as in July 2016 is 9.55%.

    Loan amount up to Rs. 75 lakh:

    Repayment Tenure Interest Rate
    1-5 years 9.55 percent (MCLR)
    5-10 years 9.55 percent (MCLR)
    10+ years 9.55 percent (MCLR)

    Loan amount more than Rs. 75 lakh:

    Repayment Tenure Interest Rate
    1-5 years MCLR + 0.25% = 9.8%
    5-10 years MCLR + 0.25% = 9.8%
    10+ years MCLR + 0.25% = 9.8%

    Since the MCLR is subject to revision at frequent intervals, make sure to check with the bank for latest rates before applying for a home loan.

    IOB Home Loan Eligibility Criteria:

    • Individual applicants should not be older than 55 years at the time of application. This condition gets a further extension to 60 years if the applicant is a legal heir is joining as a co-applicant.
    • 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. The form can be downloaded from the website of IOB or be obtained from the nearest banking branch.
    • 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.

    IOB Home Improvement Scheme:

    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 lakhs, 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.

    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 & China.

    Highlights:

    • The purpose of this loan is to help NRIs financially in buying, building or renovating house.
    • 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 lakhs 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.

    Frequently Asked Questions:

    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. It is charged at the rate of Rs.263 per lac for loans up to 5 lacs and Rs.351 per lac for loans above Rs.5 lacs.

    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.

    Indian Overseas Bank Home Loan Reviews

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