Indian Overseas Bank

Indian Overseas Bank  Home Loan

Apply Indian Overseas Bank  Home Loan

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

  • Up to 30 Lakhs: 1-Y MCLR = 8.20%
  • 30 Lakhs to 75 Lakhs: 1-Y MCLR + 0.10% = 8.75%
  • Above 75 Lakhs: 1-Y MCLR + 0.25% = 8.90%

Home Improvement Scheme

  • Up to 2 Lakhs: 1-Y MCLR + 0.20% = 8.85%
  • Above 2 Lakhs: 1-Y MCLR + 0.35% = 9%

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

  • 75% to 90% of the cost of the flat/house excluding documentation and registration charges, depending on the age and repayment capacity of the borrower.
  • Up to 30% of the loan amount is given for the purchase of the plot.

Eligibility

Group of individuals and members of co-operative societies:

  • Should not be aged above 55 years
  • Individuals can be considered even at the age of 60 if their legal heirs join with them.
  • The loan must be repaid before attaining the age of 70 years.

For salaried individuals:

  • Must be in a permanent job with minimum 2-3 years in service.

For self-employed professionals:

  • Minimum 3 years of activity is mandatory in the related field.

Tenure

Up to 30 years

Holiday period

  • In case of construction, up to 18 months from the first disbursement date or completion of construction, whichever is earlier.
  • In case of a home purchase, up to 3 months.

Security

  • First mortgage on to-be-purchased/ constructed/ renovated property.
  • The land must be in the name of the applicant or with spouse jointly (a co-obligant).
  • Applicant must have a clear & marketable title and also comprehensive insurance for adequate value on the property.
  • Additional security in the form of LIC, NSC, Units of UTI also accepted.

Maximum LTV

Up to 90%

NRI Home Loan

Purpose

To purchase/build/renovate a house

Loan amount

  • To purchase/build a new house: Up to 80% of the house's cost.
  • To renovate a house: Up to 15 Lakhs
  • For loans up to 20 Lakhs: 90%
  • For loans up to 75 Lakhs: 80%
  • For loans above 75 Lakhs: 75%

Eligibility

  • NRI holding a valid Indian Passport
  • PIO with the passport of other countries except Pakistan, Afghanistan, Bangladesh, Sri Lanka, China, Nepal, Iran, and Bhutan.
  • The monthly income should be equivalent to Indian 10,000.

Tenure

For purchasing/building a house, the loan must be repaid in up to 15 years.

Holiday period

  • For house purchase: Repayment can start 6 months after loan sanction.
  • For building the house: Repayment can start 18 months after loan sanction.
  • For renovating the house: Repayment can start 3 months after loan sanction.

Security

  • Equitable mortgage of the to-be-purchased/built/renovated property.
  • The property must be insured for adequate value as per bank clause.
  • Registered memorandum in states, if it's applicable.

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

  • Minimum 25,000
  • Maximum 15 Lakhs
  • Depends on the actual estimated cost of the work to be done and the repayment capacity of the applicant.

Eligibility

  • Salaried individual who are in confirmed service. Take home pay should not be less than 50% of the applicant's gross salary.
  • Businesspersons or self-employed professionals with minimum 3 years experience in the current line of activity.
  • Applicant should own residential property.

Tenure

  • The loan must be repaid in up to a maximum of 144 EMIs
  • If the applicant is a salaried person, repayment depends on the number of service years left.

Holiday period

3 months

Security

  • The house or flat to be renovated/repaired should be mortgaged to the bank.
  • Any other property which is in the name of the borrower and has a market value twice than the loan amount (if the concerned property cannot be mortgaged).

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

  • Salaried employees working with private sector companies/ Government undertakings/ MNCs/ PSUs/ Government.
  • Applicant's age should be between 21 to 45 years.
  • Applicant should have a minimum net monthly income of 30,000.

Tenure

Up to 30 years

Holiday Period

  • Up to 36 months
  • The loan tenure should not go beyond 30 years (including the holiday period) and the borrower's age should not exceed 70 years on the last instalment date of the loan.

Security

  • Immovable property, which is to be bought/ constructed/ renovated, has to be mortgaged.
  • The land must be in the name of the applicant or jointly held with a spouse or close relative (co-obligant).
  • Applicant must have a clear & marketable title on the property for the creation of a valid mortgage.

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:

  • Should not be aged above 55 years
  • Individuals can be considered even at the age of 60 if their legal heirs join with them.
  • The loan must be repaid before attaining the age of 70 years.

For salaried individuals:

  • Must be in a permanent job with minimum 2-3 years in service.

For self-employed professionals:

  • Minimum 3 years of activity is mandatory in the related field.

Tenure

Up to 30 years

Holiday period

  • In case of construction, up to 18 months from the first disbursement date or completion of construction, whichever is earlier.
  • In case of a home purchase, up to 3 months.

Security

  • First mortgage on to-be-purchased/ constructed/ renovated property.
  • The land must be in the name of the applicant or with spouse jointly (a co-obligant).
  • Applicant must have a clear & marketable title and also comprehensive insurance for adequate value on the property.
  • Additional security in the form of LIC, NSC, Units of UTI also accepted.

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

  • This loan can be availed to furnish an existing home with new furniture, kitchen equipment, room coolers, curtains, air conditioner, cots, sink, bath-tubs, cupboards, show-case, carpets, etc.
  • Renovation/repair of the apartment as well as the cost of developing the apartment's of common area are also covered.

Loan amount

  • The loan amount is in proportion to the applicant's monthly income: 
  • 5 times of the gross monthly income of the borrower or 2 Lakhs, whichever is less (on providing the third party guarantee).
  • 10 times of the gross monthly income of the borrower or 10 Lakhs, whichever is less (if the collateral is equal to the approved loan amount).

Eligibility

  • Employed individual who are in confirmed service.
  • Who owns a house/flat
  • Who are below the age of 55 years
  • For businesspersons, 3 years of experience in the related field is mandatory.
  • The EMI for this loan and Home Loan should be up to a maximum of 60% of the borrower's gross pay.

Tenure

Up to 6 years

Security

Up to 2 Lakhs:

  • Hypothecation of the items to be purchased.
  • If the house was purchased through funds from another bank/financial institution, the borrower has to submit a no lien letter from the bank or financial.
  • Third party guarantee required for the loan.

 

Above 2 Lakhs to 5 Lakhs:

  • Mortgage of the flat or house to be furnished.
  • If the house was purchased with finance from Indian Overseas Bank, the mortgage is extended for this loan too OR mortgage of any other house or flat with value at least equivalent to the loan amount.
  • If the house was purchased through funds from another bank/financial institution, the borrower has to submit a no lien letter from the bank or financial.
  • Hypothecation of the items to be purchased.

Maximum LTV

  • Minimum 25% of the cost
  • Margin money is kept as a term deposit until the loan is closed.

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

  • Minimum: 50,000
  • Maximum: 2 Crores

Eligibility

  • Existing Home Loan borrowers
  • Satisfactory repayment track is mandatory for at least last 1-year.
  • Valid mortgage and registration of memorandum should be created in the bank's favour.
  • A borrower who has completed minimum of 1/3rd of the Housing Loan repayment tenure is entitled for top up loan.

Tenure

  • The tenure is linked to the remaining maturity of the existing Home Loan.
  • Borrower's age should not be above 70 years

Margin

  • For immovable properties: 50%
  • For NSC/KVP/UTI, etc.: 25%
  • Life Policies (depends on the surrender value): 10%

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

  • Existing SB/CD customers of Indian Overseas Bank
  • The borrower must maintain a minimum balance of 5,000 with regular transactions in the accounts OR maintain their salary account with the bank.

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

  • Immovable property, which is to be bought/ constructed/ renovated, has to be mortgaged.
  • The land must be in the name of the applicant or jointly held with a spouse or close relative (co-obligant).
  • Applicant must have a clear & marketable title on the property for the creation of a valid mortgage.

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

  • Loan up to 75 Lakhs: 0.50% of the loan amount (maximum 20,000)
  • Loans above 75 Lakhs: 0.50% of the loan amount (maximum 25,000)
  • NIL for Loans to Air Force personnel

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

  • EWS and LIG - Loans Up to 6 Lakhs: 3,000
  • MIG I - Loans up to 9 Lakhs: 2,000
  • MIG II - Loans up to 12 Lakhs: 2,000
  • Processing fee is paid by NHB
  • If the loan granted above the eligible loan amount limit for subsidy, processing charges will be 0.50% of the loan amount (maximum 20,000)

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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