About Indian Overseas Bank Home Loan
Indian Overseas Bank was found by Shri M Chidambaram Chettiyar with a view to encourage foreign exchange operations and overseas banking. Indian Overseas Bank specialised in overseas operations since the day of inception.
During 1960 the banking sector brought a change by merging the weaker banks. Indian Overseas Bank took over a large number of local banks in Tamilnadu. In 1969 banks were nationalised in India. Indian Overseas Bank was one of the banks that were nationalised.
Since its inception, they have come a long way and emerged as one of the largest nationalised banks. They cater to all categories of society. Indian Overseas Bank offers a variety of products in retail lending, personal banking, and digital banking. Indian Overseas Bank Home Loan is one of the popular products, which has some attractive features. The Home Loans offered by this bank comes with the longest tenure, low interest rate, high loan to value (LTV) ratio, and easy processing.
Why Indian Overseas Bank Home Loans?
Here are some reasons why you should opt for Overseas Bank Home Loan:
- Low margin required from the borrower (minimum 10%)
- Low processing fees
- Reasonable interest rates
- A variety of housing loans to meet all housing-related requirements such as house purchase, construction, renovation, repair, and so on.
- Long tenure, which may go up to a maximum of 30 years
- Home Loans available for salaried as well as self-employed persons
- Home Loans for not just Indian residents, but Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) as well.
- No additional charges on prepayment of the loan
- Holiday periods available on some housing loan schemes
- Top-up on housing loan available to fund additional financial requirements
- You can also take a loan before finalising a house to be purchased under Subhagruha Pre-Approved Home Loan scheme.
- Housing Loan facility in the form of Cash Credit also available for Indian Overseas Bank customers.
- Instant Home Loan facility available for select customers
Features and Benefits of Indian Overseas Bank Home Loans
Home Loans at Overseas Banks come with attractive features and advantages.
Some of them are mentioned below:
- Purpose:
- To purchase or build a new house/ flat
- To repair, renovate, upgrade, modify an existing house/flat
- To furnish home with new furniture, kitchen equipment, room coolers, air conditioner, curtains, etc.
- To provide provisional sanction of housing loan limits to the bank's customers before finalisation of the property so that they can negotiate with the seller/ builder confidently.
- To provide top-up loans to all existing Home Loan borrowers having a satisfactory repayment track of minimum 1-year.
- To provide a Housing Loan facility to the bank's customers in the form of Cash Credit
- To offer housing loans to NRIs and PIOs
- To offer an instant housing loan to the young customers with up to 20% higher loan amount
- Various housing loans schemes for all housing needs: Housing Loan, NRI Home Loan, Home Improvement Scheme, Home Décor, Subhagruha Pre - Approved Home Loan, Subagruha Top up Loans, Subhagruha Gen Next Housing Loan, and Subhagruha Housing Loan CC.
- Long tenure: Depending on the scheme type, the repayment tenure may go up to 30 years
- Affordable interest rates: Starting at 8.65% per annum, depending on the type of scheme and borrowers creditworthiness.
- LTV: Can go up to 90% of the concerned property's value
- Prepayment charges: Nil
- Holiday period: Can go up to 36 months, depending on the type of scheme and repayment tenure.
Indian Overseas Bank Home Loan Interest Rates
Linked to the bank's 1 year MCLR or Marginal Cost of Funds based Lending Rate, the interest rates on different housing loan schemes at Indian Overseas Bank are as follows:
Housing Loan |
|
Home Improvement Scheme |
|
Home Décor |
1-Y MCLR + 2.75% = 11.40% |
Subagruha Top up Loans |
1-Y MCLR + 3.50% = 12.15% |
*The 1-year MCLR of the bank is 8.65% as updated on10.07.2019
Types of Indian Overseas Bank Home Loans with Their Eligibility Criteria
The Indian Overseas Bank offers several types of Home Loans.
Details of the same are given below with their eligibility criteria:
Housing Loan
Purpose |
To purchase/build or renovate a house/flat |
Loan amount |
|
Eligibility |
Group of individuals and members of co-operative societies:
For salaried individuals:
For self-employed professionals:
|
Tenure |
Up to 30 years |
Holiday period |
|
Security |
|
Maximum LTV |
Up to 90% |
NRI Home Loan
Purpose |
To purchase/build/renovate a house |
Loan amount |
|
Eligibility |
|
Tenure |
For purchasing/building a house, the loan must be repaid in up to 15 years. |
Holiday period |
|
Security |
|
Maximum LTV |
Up to 80% |
Home Improvement Scheme
Purpose |
To repair/renovate/upgrade/modify an existing house/flat through painting, rewiring, fixing marbles, changing the tiles, making additions, etc. |
Loan amount |
|
Eligibility |
|
Tenure |
|
Holiday period |
3 months |
Security |
|
Subhagruha Gen Next Housing Loan
Purpose |
It is an instant Home Loan made for young customers. Under this scheme, the applicants can get a 20% higher loan amount than the eligible normal Home Loan. |
Loan amount |
75% to 90% of the estimated cost of the project (including the land's cost) for a new as well as an old house/flat, depending on the loan amount. |
Eligibility |
|
Tenure |
Up to 30 years |
Holiday Period |
|
Security |
|
Margin |
10% to 25% of the estimated cost (including the land's cost) for a new as well as an old house/flat, depending on the loan amount. |
Subhagruha Pre-Approved Home Loan
Purpose |
Under this loan, bank's customers get a provisional sanction for Home Loan limit even before the finalisation of the property. This will help them to negotiate with the respective builder/seller confidently. |
Loan amount |
75% to 90%% of the estimated cost (including the land's cost) for a new as well as an old house/flat, depending on the loan amount. |
Eligibility |
Group of individuals and members of co-operative societies:
For salaried individuals:
For self-employed professionals:
|
Tenure |
Up to 30 years |
Holiday period |
|
Security |
|
Margin |
10% to 25% of the estimated cost (including the land's cost) for a new as well as an old house/flat, depending on the loan amount. |
Home Décor
Purpose |
|
Loan amount |
|
Eligibility |
|
Tenure |
Up to 6 years |
Security |
Up to 2 Lakhs:
Above 2 Lakhs to 5 Lakhs:
|
Maximum LTV |
|
Subagruha Top up Loans
Purpose |
To provide top on housing loans for existing Home Loan customers of the bank for funding additional financial needs. |
Loan amount |
|
Eligibility |
|
Tenure |
|
Margin |
|
Subhagruha Housing Loan CC
Purpose |
This is a Housing Loan facility to the customers of Indian Overseas Bank in the form of Cash Credit, wherein borrowers can keep any additional lump sum amount received in an account with the bank. The customer can save interest to the extent of the surplus available in the account. The actual interest charged is lesser than the term loan. |
Loan amount |
The Drawing Power of the Cash Credit limit, equal to the monthly instalment will be reduced every month. |
Eligibility |
|
Tenure |
Up to 30 years |
Holiday period |
Up to 36 months. However, loan tenure should not be above 30 years, including the holiday period. Also, the borrower's age should not exceed 70 years at last instalment of the loan. |
Security |
|
Margin |
10% to 25% of the estimated cost (including the land's cost) for a new as well as an old house/flat, depending on the loan amount. |
Documents Required for Applying for Indian Overseas Bank Home Loans
The documents required for Overseas Bank Home Loans are mentioned below:
Documents Required for Housing Loan
- Loan application form
- Salary certificate for salaried individuals as proof of income
- Proof of income for professionals, business people, etc.
- Agreement for sale of the concerned house/flat
- Membership proof for co-operative societies, etc.
- Experience proof in the line of activity for business people, professionals, etc.
- Estimates for the construction/ legal opinion on the property from Engineer or Lawyer approved by the bank/ valuation report for acquisition.
Documents Required for Home Décor
- Loan application form
- Income proof of applicant as well as guarantor
- Copy of title deeds of the concerned house/flat
- If there is an existing housing loan, a certificate is required for the outstanding balance
- Estimate/quotation for the items to-be-purchased
Documents Required for Subhagruha Gen Next Housing Loan
- Loan application form
- Salary certificate for salaried individuals as proof of income
- Proof of income for professionals, business people, etc.
- Membership proof for co-operative societies, etc.
- Experience proof in the line of activity for business people, professionals, etc.
- Experience proof in the line of activity for business people, professionals, etc.
- Estimates for the construction/ legal opinion on the property from Engineer or Lawyer approved by the bank/ valuation report for acquisition.
For further documents related query, get in touch with MyMoneyMantra's Home Loan Specialists or Indian Overseas Bank.
Why Apply for Indian Overseas Bank Home Loan at MyMoneyMantra?
When it comes to your home, you want no one but the best to handle everything. This is where MyMoneyMantra comes in. With over 28 years of experience in the arena, MyMoneyMantra offers you the best assistance to not only get the lowest interest rate for the Home Loan, but also makes your documentation process and the overall turnaround time much faster and seamless.
Experts at MyMoneyMantra help you get the best Home Loan deal taking into consideration your financial commitments, repayment capacity, and income. Not only do they help you understand all the fine print of bank policies, they also make sure that you choose a product most suited to your needs, guiding you till the last stage of loan disbursement.
How to Apply for Indian Overseas Bank Home Loan at MyMoneyMantra?
While one can apply for a Home Loan by getting in touch with the bank, it is always better to apply digitally, through online platforms such as MyMoneyMantra. We make sure the loan processing becomes faster and hassle-free. The procedure for applying for the loan through our website is very simple. Follow the simple steps mentioned below and make the whole process of availing Home Loan less complicated.
- Go to our main menu on the home page and click on Home Loan option
- You will then be required to fill in certain details
- Once all the mandatory details are provided, you will be shown various options. You can choose the desired lending partner from the list and click on the e-connect button.
- Once the details are shared and application has been submitted, our team will get in touch with you to understand your need in detail and help you through the process of getting a Home Loan seamlessly.
Other Products Offered by Indian Overseas Bank
The bank also offers other products, such as:
Clean Loan |
Consumption Loans - Sahayika |
Vehicle Loans - Pushpaka |
Education Loans - Vidya Jyoti |
IOB Royal |
IOB Surya |
IOB Passion |
Personal Loan |
Special Personal Loan HNI VIP |
IOB Scholar |
Vocational Course & Skill Develo |
Career Dreams |
Commercial Cash Credit Against Jewellery |
Loan Against Property |
Reverse Mortgage Loan |
Mortgages - Liquirent (Loan Against Rent Receivables) |
Mortgages - Easy Trade Finance |
MUDRA Loan |
Stand up India Loan |
Term Loan |
Working Capital Loans |
MSME Credit Schemes |
IT & ITES BPO |
Merchant Banking |
IOB Expo Gold Card |
IOB - Shakti |
New Kisan Credit Card |
Agri Clinic |
Agri General Purpose Credit Card |
Agricultural Term Loans |
IOB Special Credit Schemes |
Agricultural Marketing Infrastructure Scheme |
Mobile Banking |
Saving Account |
Current Account |
Term Deposit |
Internet Banking |
Depository Services |
ASBA |
IOB Fine Gold |
Credit Cards |
Insurance & Mutual Fund |
Real Time Gross Settlement (RTGS) |
Pension Payment Scheme |
Savings Scheme |
Locker Facility |
IOB mPassbook |
NRI Accounts |
How to Calculate Indian Overseas Bank Home Loan EMI?
You can calculate the Indian Overseas Bank Home Loan EMI using an EMI Calculator available online at MyMoneyMantra. It is a simple tool that takes input (loan amount, interest rate, and tenure) from you to calculate the expected EMI on a given loan amount. It takes a few seconds to complete the calculations and is super beneficial because it is - fast, time saving, accurate, and helps you create multiple combinations to work out the best loan amount based on your income and savings.
Indian Overseas Bank Home Loan - Processing Fee and Other Charges
The list of charges applicable for Indian Overseas Bank Home Loan is as follows:
Type of Charge | Scheme | Quantum |
Processing fees
|
Housing Loan, Subhagruha Gen Next Housing Loan, Subhagruha Housing Loan CC, Home Improvement Scheme, NRI Home Loan, Home Décor |
|
Subhagruha - Top-up loans |
Irrespective of the amount: 0.75% of the loan amount (maximum 25,000) |
|
IOB-Gharonda (PMAY-Housing for All (Urban)) Credit Linked Subsidy Scheme |
|
|
Prepayment/Foreclosure charges |
For takeover/pre-closure of loans availed in individual name |
Nil
|
For others (including proprietary firm) |
2% of the prepaid amount |
Indian Overseas Bank Customer Care
For more details on Home Loans, contact the 24 x 7 customer care number of the Indian Overseas Bank - 1800 425 4445.
FAQs on Indian Overseas Bank Home Loans
Is it possible to foreclose my Indian Overseas Bank Home Loan? Are there any charges involved?
Yes, you can easily foreclose your Home Loan account with the Indian Overseas Bank. The charges are nil.
Is it possible to club incomes with my spouse to apply for Indian Overseas Bank Home Loan?
Yes, it is possible to club incomes with your spouse to get a higher loan amount. However, it is possible only if you are buying the house in joint ownership with your spouse.
What is the validity period of the sanction for Subhagruha Pre - Approved Home Loan?
Pre-approved Home Loan letter will be valid for a maximum period of 3 months. You have to submit the property papers within the validity of the letter.
How much loan amount can I get under Subagruha Top up Loans?
You can avail a maximum of 2 Crores under Subagruha Top up Loans.
What is the maximum repayment tenure available for Subhagruha Gen Next Housing Loan?
You can repay this loan within a maximum tenure of 30 years.
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