Oriental Bank of Commerce

Oriental Bank of Commerce Home Loan

Apply Oriental Bank of Commerce Home Loan

About Oriental Bank of Commerce Home Loan

Oriental Bank of Commerce (OBC) is one of the leading public sector banks in the country. It was established during the year 1943 in Lahore. After partition all the branches in Pakistan were closed down and the registered office shifted to Amritsar. During the years 1970 to 1976 the profit of the bank took a nosedive and the owner of the bank the Thapar Group contemplated closing of the bank, but with the co-operation of the employees the bank was able to come out of the situation.

The bank was nationalised in the year 1980. In 2010 it was the seventh largest public sector bank in the country. In the year 2004 Global Trust Bank which was a leading private sector bank was taken over by OBC. With the acquisition of this bank the number of branches of OBC increased to 1092.

The bank offers various banking products and services such as loans, deposit accounts, debit cards, credit cards, insurance products, internet banking, mobile banking, self-banking halls, and so on. They also have a wide range of retailing lending products of which Home Loan is very popular.

Oriental Bank of Commerce Home Loan

Interest rate

8.70%

Loan tenure

30 Years

Loan turnaround period

8 - 15 days

Loan to value (LTV)

Get loan up to 85% of project cost

Who can apply?

  • Self-employed professionals
  • Salaried individuals
  • Indian residents

Co-applicants

Up to 4 applicants are allowed as co-applicants

Lowest EMI

 783 Per Lakh

Why Oriental Bank of Commerce Home Loan?

Home Loans of Oriental Bank of Commerce are well known for the following reasons:

  • No upper limit on Home Loan
  • Home Loans available for all housing-related needs
  • Interest on daily reducing balance
  • Reasonable processing fee and rate of interest
  • No prepayment or part prepayment charges on floating rate based housing loans
  • Zero hidden charges
  • Easy eligibility norms
  • Home Loans available for non-resident Indians (NRIs) and persons of Indian origin (PIOs) as well.

Features & Benefits of Oriental Bank of Commerce Home Loan

Following are the features of OBC Home Loans:

  • Purpose of loan: The housing loans at OBC can be availed for the following purposes:
    • Purchasing land and constructing a house thereon
    • Constructing house on a plot/land which is already owned by the applicant
    • Purchasing a built up or semi built up house or flat
    • Improving/extending/repairing an existing house or flat
    • Home furnishing and furniture & fixtures
    • Purchasing an under construction or proposed to be constructed flat
    • Taking over a housing loan from other banks or financial institutions
  • Who can apply: Individuals or co-borrowers having an assured regular income source like salaried individuals, self-employed persons, self-employed professionals, business owners, farmers, and so on can apply. Borrowers can also be staff members, NRIs, PIO.
  • Interest rate: Starting at 8.70% per annum
  • Quantum of loan: There is no ceiling on the quantum of the loan for Home Loan. It depends on income/joint income of the borrower(s). For Home Furnishing Loan, the maximum limit is 25 Lakhs (restricted to maximum 30% of the value of an existing house).

The components considered to arrive at the loan quantum for Home Loan are:

  • Value of the property to be purchased as per the valuation report or value as per agreement of sale whichever is lower.
  • In case of construction the value as per the estimate submitted
  • Cost of conversion of the house/flat from leasehold property to freehold property
  • Registration charges, stamp duty, documentation and other charges wherever the value of the dwelling unit is not more than 10 Lakhs.
  • House insurance premium
  • Components considered to arrive at the loan quantum for home furnishing loan are:
  • Cost of repair, renovation, furnishing and extension
  • The purchase price including installation charges of Rooftop Solar PVs and lighting, wiring and other fittings.
  • Group Secure Scheme (GSS) premium
  • Repayment tenure: Maximum repayment period is 480 months including holiday period of 18 months for Home Loan and 120 months for Home Improvement Loan.
  • Processing fee: Processing charges at 0.50% of the loan amount with a minimum of 2,000 and a maximum of 30,000 plus applicable taxes.
  • Margin: For loans up to 30 Lakhs margin fixed is 10%, for loans above 30 Lakhs up to 75 Lakhs margin fixed is 20% and for loans above 75 Lakhs margin fixed is 25%. For Home Improvement Loan the margin is 25% of the cost of renovation/furnishing.
  • Security: Primary security registered or equitable mortgage of the property financed
  • Pre-payment/pre-closure charges: Nil

Oriental Bank of Commerce Home Loan Interest Rate

The Home Loan interest rates are linked to the 1 year Marginal Cost of Funds based Lending Rate (MCLR) of the Oriental Bank, which is 8.70% as updated on 11.06.2019.

The rates applicable are as follows:

Loan Category Margin Effective Interest Rate

Up to 30 Lakhs

20% or above

1 year MCLR = 8.70%

From 10% to up to 20%

1 year MCLR +0.10% = 8.80%

Above 30 Lakhs and 75 Lakhs

25% or above

1 year MCLR = 8.70%

 

1 year MCLR + 0.10%: 8.70%

Above 75 Lakhs

25% or above

1 year MCLR = 8.70%

Types of Oriental Bank of Commerce Home Loan

The Home Loan types provided by the Oriental Bank of Commerce can be categorised as follows:

  • Home Loan: This loan can be availed for the purchase of a ready-built or semi-built house/flat, repurchase house/flat, construction of the house, purchase of land and construction of house thereon, and purchasing an under construction or proposed to be constructed flat.
  • Home Improvement Loan: This loan can be taken for improving/extending/repairing an existing house or flat, home furnishing and furniture & fixtures
  • Home Loan Takeover or Home Loan Balance Transfer: This loan is for taking over a housing loan from other banks or financial institutions.

Eligibility for Oriental Bank of Commerce Home Loan

Below are the eligibility criteria that every borrower needs to pass in order to be eligible for Oriental Bank of Commerce Home Loan:

  • Any individual or co-borrower having an assured regular income source like salaried individuals, self-employed persons, self-employed professionals, business owners, farmers, and so on can apply.
  • Staff members, NRIs, and PIO can also apply.
  • The minimum age of the borrower should be 18 years when applying for the loan.
  • The maximum age of the borrower should not be above 75 years for salaried (with pension) and other Individuals, when the loan matures. The maximum age limit for Salaried (Non-Pensionable) individuals is up to 60 years or superannuation, whichever is earlier.
  • The loan quantum is fixed considering the net take home (NTH) salary to loan component after providing for all the existing commitments including IT deduction plus the equated monthly instalment (EMI) for the proposed loan. If the annual income is up to 5 Lakhs then the NTH to loan component is 50%. If the annual income is between 5 Lakhs and 10 Lakhs then the NTH stipulated is 40%, and if the annual income is above 10 Lakhs then the NTH stipulated is 30%.

Documents Required for Applying for Oriental Bank of Commerce Home Loan

The following documents have to be submitted for applying for OBC Home Loan.

  • Application form for Home Loan, duly filled
  • Passport size photographs of the applicant as well as co-applicant(s) and guarantor(s)
  • ID proof and address proof of the applicant, co-applicant(s) and guarantor(s)
  • Aadhaar Card
  • Copy of last 12 months' bank account statements
  • Income proof like salary certificate, Form 16, ITR
  • For agriculturists, the income proof can be the record of land holding and cropping
  • Property documents

Why Apply for Oriental Bank of Commerce 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 30 years of experience in delivering financial products, MyMoneyMantra offers you the best assistance to not only get the lowest interest rates 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, but 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 Oriental Bank of Commerce 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 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 the home page of our website and click on Home Loan option that is given under Loans tab.
  • Enter the required details in the form displayed on the screen
  • Once all the mandatory details are provided, the eligibility will be calculated. On trying different variations, one can get the best deal.
  • Once the details are shared, the team from MyMoneyMantra 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 Oriental Bank of Commerce

Apart from Home Loans, there are various other products as well that are offered by the Oriental Bank of Commerce, such as:

Debit Card

Digital Banking

Saving Account

Current Account

Term Deposit

Personal Loan

Vehicle Loan

Mortgage Loan

Education Loan

Retail Loan Misc

Life Insurance

General Insurance

PM Social Security Schemes

Mutual Funds

Oriental Bank of Commerce - SBI Card

Demat

CGTMSE

Agriculture Loan Scheme

Sukanya Samriddhi Account

Senior Citizen Saving Scheme

Atal Pension Yojana

Central Govt. Pension

National Pension Scheme

Public Provident Fund

OLTAS

MSME Loan Schemes

Foreign Exchange

Trade & Finance

NRI Loans

Remittance Services

How to Calculate the Oriental Bank of Commerce Home Loan EMI?

The easiest and most convenient way to calculate the Oriental Bank of Commerce Home Loan EMI is through using MyMoneyMantra's EMI Calculator. It is an online tool which comes at free of cost to you. The tool can be used for numerous times from anywhere at any time.

Here's how to use it:

  • Visit MyMoneyMantra
  • Hover the cursor at Financial Tools and click on the EMI Calculator
  • Enter the details required - loan amount, tenure for repayment, and rate of interest
  • Click on the Calculate button for the instant outcome

Oriental Bank of Commerce Home Loan - Processing Fee and Charges

Home Loans Oriental Bank of Commerce involves the following charges apart from applicable interest rate:

Fees or Charges Levied Amount

Processing fee

0.50% of the loan amount with a minimum of 2,000 and a maximum of 30,000 plus applicable taxes.

Prepayment penalty

Nil

Stamp Duty & other statutory charges

As per applicable laws and guidelines of State

Professional fee

  • Up to 1 Crore:   2,000 per property for major cities, 1,000 per property for other cities, and  500 per property for rural areas
  • Above 1 Crore: 3,000 per property for major cities, 2,000 per property for other cities, and  1,000 per property for rural areas

Vetting charges

  • Loan amount up to 10 Lakhs:   500 per account for per instance of vetting
  • Loan amount above  10 Lakhs up to 1 Crore:   1,000 per account for per instance of vetting
  • Loan amount above  1 Crore up to 5 Crores:   1,500 per account for per instance of vetting

Valuation charges

  • Up to 10 Lakhs: 2,000  
  • Above  10 Lakhs up to 20 Lakhs:  2,500
  • Above  20 Lakhs up to 50 Lakhs: 3,000
  • Above  50 Lakhs up to 1 Crore: 5,000
  • Above  1 Crore up to 5 Crores: 7,500
  • Above  5 Crores: 10,000
  • For Category A valuers, where property's value is above 10 Crores: 15,000

Charges for CIBIL report extraction

  • Consumer CIR with Combo Score: 62 +  applicable GST
  • In case any data is not available or no match found for individual's report: 33 + applicable GST
  • Commercial CIR: 700 + applicable GST
  • In case any data is not available or no match found for the report : Nil

CERSAI Charges

Up to 1,000 (case to case basis)

Charges for Property Insurance

Actual

Charges for Cheque Bounce/ ECS or SI Dishonour

250 + GST for each bounced cheque/ ECS or SI dishonour related to EMI payment

Penal Interest

Applicable over the normal interest rate on overdue amount for the overdue period

Charges for interest switch over

0.50% of the outstanding loan amount as on the switchover date, subject to a maximum of 50,000

Oriental Bank of Commerce - Customer Care

For more details on Home Loans, contact the 24 x 7 customer care number of the Oriental Bank of Commerce:

  • 1800-180-1235
  • 1800-102-1235

You can also call customer care at: 0120-2580001

Oriental Bank of Commerce Home Loan - FAQs

How to apply for OBC Home Loan?

You can get in touch with the bank by calling their customer centers or visit their branch. You can also apply online through MyMoneyMantra.

What are the maximum and minimum loan amounts that can be availed?

There is no minimum and maximum concept in OBC Home Loan. The quantum is based on the income of the applicant and his or her repayment capacity.

Who can be co-applicants to the Home Loan?

Immediate relatives that is, spouse, father, mother and children can be co-applicants. Siblings can also be co-applicants if the property is in joint names with them.

What is the processing fee charged?

A processing charge will be collected at 0.50% of the loan amount with a minimum of 2,000 and a maximum of 30,000.

What are the documents that have to be submitted while applying for a loan?

The regular documents like completed loan application with a recent passport-sized photograph, address proof, identity proof, income proof, age proof, a cheque for the processing fee, property papers.

What are the EMI payment options?

Standing instructions will be noted in the OBC Savings Bank Account.

How is interest on loan account charged?

Interest is charged on reducing balance at monthly intervals.

Should the property be insured?

The property created out of the loan has to be insured for fire and other natural calamities during the pendency of the loan. The insurance has to be renewed every year and the proof for verification has to be produced to OBC. OBC should be the beneficiary of the insurance policy.

Why should one opt for Home Loan balance transfer to OBC?

OBC offers Home Loan at an interest which starts as low as 8.70%. If one is paying the interest rate more than that then transfer of Home Loan balance to OBC is recommended.

Can the OBC Home Loan be pre-closed? What are the charges?

OBC Home Loan can be pre-closed and there are no pre-closure charges applicable.

Oriental Bank of Commerce Home Loan - Snippets

11.06.2019: Oriental Bank of Commerce cuts 1-year MCLR by 5 bps to 8.70%

Oriental Bank of Commerce (OBC) said on Tuesday that it has cut its MCLR or marginal cost of fund based lending rate for 1-year tenor loans by 5 basis points to 8.70%. OBC has revised the MCLR for 3 loan tenors w.e.f. 11.06.2019. For 6 months tenor, the new MCLR will be 8.60% as against earlier rate of 8.70%. For 1-month tenor, the MCLR will be 8.35%, down 10 bps from the earlier rate.

11.06.2019: Oriental Bank of Commerce, Union Bank, and Andhra Bank are likely to merge into Bank of India

After the recent merger of Dena Bank and Vijaya Bank with Bank of Baroda, and merging SBI with its 5 subsidiaries and Bharatiya Mahila Bank, now the government is planning to merge Oriental Bank of Commerce (OBC), Union Bank and Andhra Bank into Bank of India.

13.05.2019: Oriental Bank of Commerce eyes a net profit of 1,000 crore in Financial Year 20

Encouraged by its turnaround in financial performance in 2018-19, the Oriental Bank of Commerce (OBC) is now aiming a net profit of at least 1,000 Crores in 2019-20. The bank reported a net profit of 55 Crores in 2018-19 on Monday.

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