Indian Bank Home Loan

Indian Bank is one of the oldest and finest financial institutions in India. Established in the year 1907 during the Swadeshi Movement, the bank currently operates in India. However, it has several branches overseas as well. They currently have a strong workforce of over 19,000 employees in India and 227 overseas correspondent banks spread across 75 counties.

Indian Bank provides customers with affordable housing finance solutions for Indian residents and non-resident Indians (NRIs) as well. These loans cover the purchase of property, repair and remodeling, purchase of new plots, and even the construction of the property.

Indian Bank provides housing loan schemes to not only to salaried customers but also to self-employed professionals and business owner. They aim to "Be a common man's bank" providing loans that are simple and affordable for all segments of the society.

When you apply for a loan with Indian Bank, you can be assured of the following:

• Transparent and fair policies and terms
• Affordable rates of interest
• Higher loan amount based on your income and repayment ability
• Multiple Home Loan schemes for purchase, construction, as well as renovation or extension of the property, and plot purchase.
• Easy equated monthly instalment (EMI) plans and repayment options
• ISO certified information systems and security processes which is available with a handful of banks across the globe.

There are several benefits and highlights of Indian Bank Home Loan schemes that make them extremely simple and easy for customers to avail. Some of these include:

• Availability of Home Loans for purchase of new property, plot purchase, extending the current property, additional construction, and purchase of an existing flat or house.
• Interest rates starting at as low as 8.65% per annum
• The loan amount is calculated as per the monthly income and the repayment capacity of the borrower
• Low margins on loan amount to make purchase or construction of new property more affordable
• Long-term loan tenure extending to 30 years depending upon the type of loan availed
• Comfortable holiday period of up to 18 months on loans availed for construction of the property
• Zero prepayment charges
• Group Insurance Life Cover is available at a concessional premium for borrowers. The premium amount is financed as a fresh loan and is not a part of the loan that you have applied for.
• Borrowers have the option of Home Loan take over from any other bank or financial institution that has been approved by the National Housing Bank for Housing Finance.

Indian Bank offers fixed and floating rates of interest for borrowers residing in India. For NRI and NRO applicants fixed interest rates are applicable.

The Rates of interest for Indian Bank Home Loans are linked to the bank's 1-year MCLR (Marginal Cost of Funds based Lending Rate) which is 8.65% w.e.f. 08.03.2019. Following are the MCLR-linked rates of interest for various housing loan schemes of Indian Bank as on 12.04.2019:

There are various housing loan options available with Indian Bank depending upon the requirement of the borrower. The loan scheme options available are:

IB Home Loan

• The loan is available for:
• Purchase or construction of a new house or flat
• Purchase of a plot and construction of a house on it
• Purchase of an existing house or flat
• Extend an existing house
• Repair or renovate an existing house or flat
• Takeover of Home Loan from another bank/ non-banking financial company (NBFC)/ housing finance company (HFC) approved by Nation Housing Bank.
• Covering any cost occurred within a period of 6 months for construction or purchase of a house or flat that borrower has met from his or her own resources.
• The maximum loan amount is 60 times the gross monthly income which is subject to availability of 40% take-home pay or over 20,000 after the deduction of proposed EMI inclusive of the required margin.
• A maximum of 10 Lakhs is available for repair and renovation purpose
• The Margin for the loan amount is as follows:
  • Up to 30 Lakhs: 10%
  • Above 30 Lakhs to 75 Lakhs: 20%
  • Above 75 Lakhs: 25%
  • For repair and renovation: 30%
• The maximum repayment tenure is 30 years for construction or purchase of property
• Repayment period includes a holiday period of 18 months for purchase or construction of the property.
• The maximum repayment period for repair and renovation is 120 months
• NIL prepayment charges

IB Plot Loan

• The loan is available for the purchase of a plot on an ownership basis. The plot should be in a layout that is approved by a Competent Authority.
• The maximum loan amount is 36 times the gross monthly income (for salaried individuals) and 3 times of annual net income (for self-employed professionals and business owners).
• The maximum amount of Plot Loan is capped as follows:
  • In rural areas: 50 Lakhs
  • In semi-urban areas: 1 Crore
  • In urban areas: 2 Crores
  • In metro: 3 Crores
• The Margin required is 25% of the land's cost
• Higher interest rate is applicable for the delay period if the construction of property does not begin within 2 years of loan sanction or from the date of handing over possession by the respective Government Housing Development Agency.
• Repayment must be made within a maximum of 180 EMIs. The holiday period is not available on Plot Loan.

IB Home Improve Loan 

• Loan is provided for purchase of household furniture, cupboards, kitchen racks, TV sets, computers, fridge, wallpaper, lighting, kitchen chimney, air conditioners, interior decoration, modern gadgets for kitchen, piped gas, supply or cost of bore well with necessary lifting devices such as jump pump sets, solar systems, compressors and immersion pump sets.
• The borrower should be a current or prospective Home Loan borrower of IDBI Bank
• The maximum loan amount is 36 times the net monthly income of the individual subject to a maximum of 3 Crores.
• You may include the salary of your spouse to increase your eligible loan amount if he or she works for the government or public sector or reputed private organisation.
• Take home salary should be more than 40% of the gross income with a minimum of 20,000 as net monthly income after proposed EMI is recovered.
• Margin is 15% of articles purchased on the loan
• There is no holiday period
• The repayment tenure is as follows:
  • For appliances with less life span: 48 months
  • For others: 60 months

IB Home Loan Plus

• This loan is available for all bonafide purposes
• This loan is available to all current Home Loan borrowers who have paid at least 12 EMIs regularly, including NRIs, current staff members of Indian Bank and retired staff members.
• You must have a minimum of 40% take home pay on your gross income after the proposed EMI is deducted.
• The minimum loan amount is 1 Lakh and the maximum loan amount available is 60 Lakhs.
• Maximum Loan-to-Value (LTV) ratio available is 90%, 80%, or 75% as per the loan amount
• You have a maximum repayment period of 120 months
• The house property must be revalued after the proposal is considered with a residual life of at least 10 years for the house or flat in consideration.
• This loan is available on self-occupied or let out properties

NRI Home Loan

• The loan is available for purchase, construction, repair and renovation of a new house or flat or existing house or flat for non-resident Indians (NRIs) with a regular income.
• You can get a maximum loan amount of 36 times the gross monthly income or 60 times net monthly income, whichever is higher.
• The take-home income should be 40% more than the gross income after all deductions including proposed EMI.
• The margin for these loans is as follows:
  • For loans up to 30 Lakhs: 10%
  • For loans above 30 Lakhs and up to 75 Lakhs: 20%
  • For loans above 75 Lakhs: 25%
  • For repair and renovation: 30%
• The repayment period for this loan is a maximum of 15 years including the holiday period.
• The holiday period available is for a maximum of 18 months.
• Repayment can be made from overseas or through any rental income available with the property.

NRI Plot Loan

• The loan is available for NRIs for purchase of house site on ownership basis for plots located in Government Approved layouts
• Purchase of house site in rural areas is not permitted.
• The maximum loan amount available is 30 times the Gross Monthly Income.
• The cap per borrower for purchase of property is as follows:
  • For semi-urban areas: 1 Crore
  • For urban areas: 2 Crores
  • For metro: 3 Crores
• 25% margin of land cost is applicable
• The repayment should not exceed 180 EMIs

IB Home Loan Combo

• This loan is available for existing Home Loan holders who have repaid the loan regularly for at least 3 years after the holiday period.
• The applicant must have created an equitable mortgage
• The applicant must have maintained a security margin of at least 15% for purchase or construction of the property.
• This package allows the borrower to avail any of the following loans along with concession on the interest rate and processing charges.
  • IB Clean Loan (to salaried class)
  • IB Vehicle Loan (4 wheeler and 2 wheeler both)
  • IB Bhavishya Prakash Loan (for any one of the dependants of the borrower)
  • IB Pension Loan
• A concession of 0.50% is available on standard interest rates for any of the above loans
• Concession of 50% on processing fee is available on any of the above loans and on Home Improve Loan as well.
• The security required for each of the above loan should be provided
• Any Equitable Mortgage provided as security should be extended in order to cover the other loans sanctioned under this package.
• The terms and conditions of individual loans must be fulfilled

There are several other products and services available with Indian Bank, such as:

You can easily calculate your EMI with the EMI Calculator available on our website. All you have to do is enter the loan amount that you wish to borrow, the tenure of repayment for the loan, and proposed interest rate and click on the Calculate button to get instant results.

How does CIBIL score affect Indian Bank Home Loan?

A higher CIBIL score improves your eligibility for a Home Loan with Indian Bank. A CIBIL score of 650 or above is necessary for Home Loans applied with Indian Bank.

The charges applicable for Indian Bank Home Loan are:

With Indian Bank, you have reliable customer care options that allow you to make queries and also register complaints and grievances for quick assistance.

Indian Bank Offers 3 Months Moratorium for Loan EMIs to Support RBI's Move

State-run Indian Bank has announced to provide a 3-month moratorium to its customers. As per the COVID 19 regulatory package of RBI, the bank allows a moratorium by deferring EMI payment / Term Loan Instalments and Interest/ Interest on Working Capital for 3 months w.e.f 01.03.2020.Read More

06.09.2018: Indian Bank to organise Home Expo to sensitise home buyers about PMAY

In order to educate first time home buyers about the Pradhan Mantri Awas Yojana (PMAY), Indian Bank is organising a Mini Property Fair at the Grand Regent in Coimbatore on September 8^th 2018. The expo is geared towards improving the reach of the PMAY for affordable housing options.

29.08.2018: Indian Bank donates 4 Crores to Kerala

Chennai Based Indian Bank has donated 4 Crores to help flood hit Kerala. The financial aid amount was handed over by ED of Indian Bank, AS Rajeev to Kerala Chief Minister Pinarayi Vijayan.

15.02.2018: Indian Bank lowers Home Loan interest rate to 8.25%

A recent revision of Home Loans at Indian Bank has provided affordable loan options for potential home buyers. The interest rate has been reduced to 8.25%, becoming the lowest in the industry today. This interest rate is available on any Home Loan with a cap.

21.09.2017: Indian Bank raises 2,000 Crores for Infrastructure, affordable Home Loans

In order to provide affordable housing and infrastructure finance, Indian Bank raises 2,000 Crores. This amount was raised by issuing long term bonds and is a part of the 5,000 Crores fund raise proposal put forth by the bank to support better infrastructure and affordable housing in India.

What is the eligible age to avail Indian Bank Home Loans?

The minimum age at the time of Home Loan application should not be below 18 years while the maximum age at the time of loan maturity should not be above 70 years.

How is the maximum loan amount calculated?

The maximum loan amount for the purchase, construction, or repair of property is calculated based on the gross monthly income and the total take-home pay of the applicant after deducting the proposed EMI for the loan amount requested.

Should I provide any margin on Indian Bank Home Loans?

A margin between 10%-30% must be provided depending upon the type of loan, the loan amount and the purpose of the loan. Here are the details of the margin to be provided by the applicant depending on the loan amount:

• Margin required for a loan amount of up to 30 Lakhs: 10%
• Margin required for a loan amount of above 30 Lakhs up to 75 Lakhs: 20%
• Margin required for a loan amount of above 75 Lakhs: 25%
• Margin required for repairs and renovations: 30%

Is there any top-up option available?

IB Home Loan Plus is a top-up loan available to existing Home Loan holders who have successfully paid at least 12 EMIs on the current loan.

What is the interest rate on Indian Bank Home Loans?

The interest rate on IB Home Loans varies between 8.65% and 10.10% depending upon the loan scheme, the loan amount requested, and the type of borrower.

Can avail any loan for repair and reconstruction of an existing property?

Yes. You can avail loans for repair and reconstruction under IB Home Loans, IB Home Loan plus and also IB Home Improve schemes. This also includes the purchase of appliances for your home.

What is the maximum repayment tenure available?

The maximum repayment tenure for Home Loans is 30 years depending upon the loan that you have applied for.

Should my property be insured upon purchase and construction?

Any property that is provided as security should be insured at the applicant's cost at Indian Bank with cover for fire, earthquake and other risks secured by insurance providers.

What security is required for IB Home Loans?

Equitable mortgage of Property that is purchased, constructed or repaired should be provided as security for IB Home Loans. This Equitable Mortgage must be registered at the applicant's cost in case it is required in the State that the property is located in.

Do NRIs have Home Loan options with Indian Bank?

NRIs with a regular income and employment with service of at least three years from the time of application can avail NRI Home Loans and NRI Plot Loans with Indian Bank.

MyMoneyMantra is the easiest way available to apply for a Home Loan with any bank or financial institution of your choice. You have the option of reviewing a host of products on one single website before you choose one that suits your budget and requirement. When you apply with MyMoneyMantra, you have the following benefits:

• You will be able to check your eligibility for a certain Home Loan scheme offered by the financial institution of your choice instantly.
• The possible EMI upon your loan amount can be calculated using the EMI Calculator
• You get a detailed analysis of your repayment record and profile
• Every loan is explained in detail to ensure that you are aware of any fine print associated with a loan.
• Documentation is simplified with MyMoneyMantra and is completely hassle-free
• You can get a customised quote for a loan of your choice based on the assessment of your profile
• Privacy is assured to all applicants who choose to apply for a Home Loan via MyMoneyMantra

The loan application is made easy with all the processes streamlined with MyMoneyMantra. In order to apply for the Indian Bank Home Loan, all you have to do is log in to the official website and choose your gender. Then you will be guided through several simple steps as follows:

• Enter your personal details such as name and address
• Choose the loan amount that you wish to avail from Indian bank
• You have the option of choosing your loan tenure as per the loan that you are applying for
• You need to select your employment type and provide details of your net monthly income
• Details of the bank that your salary is credited to must be provided along with your work experience.
• Choose the city where you wish to purchase, construct, or renovate property
• You will be asked to provide details of the purpose of your loan
• After you enter your email ID and phone number, associates from MyMoneyMantra will contact you for assistance on various loan processing requirements.