Indian Bank Home Loan Details

Indian Bank was established in the year 1907 and had been expanding ever since. With over 100 years of existence, it has spread its tentacles all over the country and has over 5700 domestic branches and three overseas branches. The bank was totally computerized in the year 2008. The PAN India presence has made operations very convenient for its customers. The objective of providing the best financial services with customized products prompted the bank to introduce various retail products in addition to several commercial products. Indian Bank Home Loan is one such retail loan that customers of all income groups are able to avail of owing to the interest rate that is as low as 6.80% p.a. that makes it very economical.

Also Read - Home Loan Tax Benefits

Why Choose Indian Bank Home Loan?

  • Indian Bank Loan Interest Rates are affordable and easy to avail.
  • Customised schemes to suit individual needs.
  • The loan is provided for the purchase of a ready built house/flat, for construction of a residential house on an already owned land, for the repurchase of a house/flat, for the purchase of a plot, for repairs and renovations of the existing house.
  • The online application and processing of the home loan reduce the turnaround time. 
  • Flexible repayment options up to a maximum of 30 years
  • EMI calculator made available to be prepared with the eligible loan amount by calculating the affordable EMI.
  • PAN India presence makes operations convenient for the customers.

Also Check - 10 Best Home Loan Interest Rates in India

Features and Benefits of Indian Bank Home Loan

The salient features of Indian Bank Home Loan are: 

  • Various schemes under the Home Loan product to suit individual requirements.
  • Indian Bank Loan Interest Rates are attractive and easy to avail.
  • Flexible repayment options extended up to 30 years
  • Online application and processing make the loan approval fast.
  • PAN Indian presence makes it convenient for the customers to approach the bank and apply for a home loan.

The following are the benefits of the Indian Bank Home Loan.

  • Under IB Home Loan Combo, the borrowers, as well as the joint borrowers, are eligible for IB Vehicle Loan (two-wheeler as well as four-wheeler), IB Clean Loan to salaried individuals, IB Pension Loan and IB Home Improvement Loan with concessions applicable for interest rate and processing fees.
  • To avail of the benefit, the home loan should have been serviced promptly for a minimum period of one year.
  • All other eligibility criteria, repayment capacity etc., as stipulated for the respective loans, should be satisfactory. 
  • A concession of 0.50% in the interest rate and processing charges will be provided for IB Vehicle Loan, IB Clean Loan and IB Pension Loan. For IB Home Improvement Loan, the concession will be applicable only for the processing charges.
  • An OD facility up to 30% of the original home loan will be provided under IB Home Loan Advantage.

Check for 50 lakh home loan EMI and apply easily on MyMoneyMantra.

Types of Home Loans Offered by Indian Bank

Various types of Home Loans are provided depending on the purpose of the loan.

IB Home Loan

PurposeTo purchase a ready built house or flat, for the construction of a house on an already owned plot, for the purchase of a plot and construction thereon, for the repurchase of a house/flat, for repairs and renovations/extensions to the existing house. Taking over existing home loans with other financial institutions is also permitted.
Margins

10% for loans up to Rs. 30.00 lakhs

20% for loans above Rs. 30.00 lakhs and up to Rs. 75.00 lakhs

25% for loans above Rs. 75.00 lakhs

For repairs/renovations/extensions the margin will be 30%

Loan Amount

There is no maximum limit.

The quantum will be on the basis of the following:

  • For salaried individuals below  45 years of age the loan amount will be up to 72 times the gross salary and for individuals above  45 years of age the loan amount will be 60 times the gross salary.
  • For non-salaried individuals/businessmen/profession below 45 years of age, the loan amount will be 6 times the gross annual income as shown in the Iatest ITR  and for applicants above 45 years of age, the loan amount will be 5 times the gross annual income as per the latest audited ITR.
Interest Rate6.80% p.a.to 7.00% depending on the credit score
Repayment period

Maximum 30 years or till the exit age whichever is earlier inclusive of the holiday period. 

Holiday period:

For purchase of ready house/flat and take over accounts: Nil

For the construction of a house on an already owned plot: 18 months

For purchase of plot and construction thereon: 24 months

For under-construction flats: 36 months

Security  Equitable Mortgage of the assets created out of the loan

 Plot Loan

PurposeFor the purchase of residential plots in layouts approved by competent authorities.
Quantum

Rural Area: Rs. 100.00 lakhs

Semi-urban Area: Rs. 200.00 lakhs

Urban Area: Rs.600.00 lakhs

Metros: Rs. 1200 lakhs

For loan amounts over Rs. 100.00 lakhs valuation by two-panel engineers

Margin25% of the value of the plot. The maximum LTV ratio is 75%
Interest Rate7.80% to 8% p.a. Depending on the credit score
SecurityEquitable Mortgage of the plot purchased
Terms and conditions
  • The plot is to be secured by fencing or with a compound wall.
  • Property should be located in well-developed areas or in areas that are developing.
  • PIOs and NRIs are not eligible for the loan if the land is in a rural area.

NRI Plot Loan

PurposeFor the purchase of a plot in semi-urban/urban areas and metros. NRIs are not permitted to purchase a plot in rural areas
Quantum of the loan

In the semi-urban area: Rs.100.00 lakhs

In the urban area: Rs. 200.00 lakhs

In Metros: Rs. 300.00 lakhs

The quantum of loan will be 36 times the monthly gross salary with a net take-home salary of 40% of the gross salary after considering the proposed EMI with a maximum as specified areawise.

Margin25% of the land cost
Interest Rate7.80% to 8% p.a.depending on the credit score
SecurityEquitable Mortgage of the plot purchased

IB Home Advantagenual 

Purpose

For purchase of a new ready-built house/flat, for the purchase of a plot and construction thereon, for the repurchase of house/flat, for repairs/renovation/extension of the existing house and for the purchase of a flat.

Reimbursement of the investment made within six months from own source for the purchase of house/flat or for the construction of a house/repairs/renovations/extension of the existing house

Quantum of loan

Between 75% to 90% of the project cost on a case to case basis

  • For salaried individuals within 45 years of age, amount up to 72 months’ gross salary and 60 months salary for individuals over 45 years will be considered.
  • For the self-employed individuals/businessmen/ professionals within 45 years, six times the gross annual income as per ITR and five times the gross annual income as per ITR for those above 45 years.
Margin10% to 25% of the project cost
Rate of Interest6.80% to 7% depending on the credit score
Repayment periodMaximum 30 years with a repayment holiday of 18  months for the construction of a house, 24 months for the purchase of a plot and construction thereon, 36 months for under-construction flats. No repayment holiday for the purchase of a house/flat.
SecurityEquitable mortgage of the property created out of the loan.

IB Home Loan Plus

PurposeAny purpose other than speculation. Existing home loan customers who have paid a minimum of  12 EMIs of the home loan promptly will be provided with the loan.
QuantumRs.1.00 lakhs to Rs.60.00 lakhs provided the Net Take Home Salary, Age and other eligibility criteria as per Home Loan is complied with.
Margin

70% of the residual value of the property without disrupting the margin of 75% to 90% stipulated for Home Loan.

The property does not require revaluation if the request for the loan is made within three years of availing of the home loan provided the LTV is maintained as required by the home loan on approval of the loan.

Revaluation has to be done if the request for the loan is made after three years of availing of the home loan.

Rate of Interest7.30% to 7.50% depending on the credit score
RepaymentMaximum 10 years
SecurityContinuing mortgage of the property created out of the home loan

IB Home Improvement Loan

PurposeFor purchase of household gadgets and for the interiors of the house
Quantum

36 times the gross salary with a maximum of Rs. 300.00 lakhs.

The income of the spouse can be reckoned to increase the eligibility.

Margin15% of the project cost or the cost of the articles purchased
Interest7.30% to 7.50% p.a.depending on the credit score
RepaymentMaximum 10 years with no repayment holiday

Also Check - Home Loan Disbursement Process

Ind Awas Home Loan under PMAY-CLSS Scheme

  • The scheme is specific to the Economically Weaker Section, Low Income Group and Middle Income Group.
  • There are four 
  • The definition of family under the scheme is husband, wife and unmarried children.
  • Ownership or the joint ownership of a female entity in the family is mandatory.
  • No one in the family should own a pucca home.
  • The annual household income should not exceed 3.00 lakhs in the case of EWS, 6.00 lakhs in the case of LIG, 12 lakhs in the case of MIG-I and 18 lakhs in the case of MIG-II.
  • The maximum amount eligible for subsidy calculation is Rs. 6.00 lakhs for EWS/LIG-I, 9.00 lakhs for MIG-I and 12 lakhs for MIG-II. The interest subsidy is calculated at 4.50% for EWS/LIGI, at 4% for MIG-I and 3.50% for MIG-II.
  • The maximum subsidy for EWS/LIG-I is Rs.2.67 lakhs, 2.35 lakhs for MIG-I and 2.30 lakhs for MIG-II.
  • The maximum repayment period is 30 years but the maximum period eligible for interest subsidy is 20 years.

Also Read - Pros and Cons of a Home Loan Top Up

Indian Bank Home Loan Eligibility

For the application to be approved, the following eligibility criteria of Indian Bank Home Loan have to be met.

  • Salaried/self-employed individuals/professionals, pensioners and staff of Indian Bank are eligible for the loan.
  • A minimum of 3 years experience, including the present as well as the past employment/business, is mandatory.
  • Resident Indians aged between 18 years to 70 years are eligible.
  • NRIs should be between 21 to 60 years of age.
  • NRIs should have a steady income with a residual work contract/service of a minimum of 3 years.
  • A steady income is one of the most important criteria.
  • The applicant should be a resident Indian.
  • There are special schemes like Home Loan Advantage and Plot Loans for NRIs.
  • The minimum net take-home salary should not be less than 40% of the gross annual income, including the proposed EMI, if the annual income (either jointly or individually0 is not more than 15.00 lakhs. If the annual gross income is more than 15.00 lakhs, the net take-home salary should not be less than 30% of the gross annual income, including the proposed EMI. However, the minimum annual take-home salary stipulated is Rs. 6.00 lakhs.

Also Read - Home Loans for Senior Citizens: Eligibility, Interest Rate, and EMI

Documents Required for Indian Bank Home Loan

The following documents have to be submitted along with the duly filled application form and two passport size photographs.

  • Address Proof: Aadhar Card, Voter’s ID, Driving Licence, Passport
  • Photo ID Proof: PAN Card, Aadhar Card, Voter’s ID, Passport

Income Proof for salaried individuals:

  • Salary Slips for the last three months
  • Latest Form 16
  • Latest ITR
  • Bank Account Statement for the six months

Income Proof for Non-salaried individuals

  • Audited financials like Balance Sheet and Profit and Loss Account for the last three years
  • ITRs for the last three years
  • Bank Account Statement for the last 12 months

Property Documents

  • Agreement of Sale or Sale Deed
  • Approved Building Plan
  • Title Deeds for last 13 to 30 years
  • Extract of Revenue Records to marketable title
  • Latest Property Tax Paid Receipts

NRIs (copies of the documents attested by the Indian Embassy or Notary of the country or any other competent authority of the country)

  • Passport with visa stamping
  • Identity card issued by the employer
  • Work permit
  • Employment contract with translation in English wherever required.
  • Details of Employment profile for the last three years.
  • Details of the Employer regarding the constitution, net profit, business activity, etc
  • For applicants employed with the Navy, a continuous discharge certificate
  • Bank statement of Overseas bank account where salary is credited for the last six months
  • PIOs have to submit utility bills, driving licences, ID cards or Social Card issued by authorities in the respective country.
  • PIOs have to submit the latest passport mentioning the birthplace as India.
  • Earlier an Indian passport had to be submitted by the PIOs

Also Read - Prepayment of Home Loan: Charges & RBI Rules

Indian Bank Home Loan Processing Fee and Other Charges

The following are the processing fees and other charges for Indian Bank.

Processing Fee

040% of the loan amount for loan amount up to Rs. 100.00 lakhs with a maximum of Rs. 20000/- and 20% of the loan amount for a loan above  Rs. 100.00 lakhs with a maximum of Rs.50000/- for IB Home Loans to Residents as well as NRIs, IB Home Loan Advantage, IB Plot  Loan to NRIs.

1% of the loan amount for Home Loan Plus, Home Improvement Loan, Plot Loan to Residents

Prepayment chargesNil 

Also Check - Why You Must File Your ITR if You Want a Home Loan

How to Apply for Indian Bank Home Loan

Follow the steps given below to apply for Indian Bank Home Loan through MyMoneyMantra.

  • Access the website of MyMoneyMantra
  • Go to home loans under the loans option.
  • Choose the gender
  • Provide the city of residence
  • Provide the location of the property
  • Provide the income details
  • Give the required personal details.
  • Enter the email ID and mobile number
  • OTP will be sent to the mobile number
  • Enter OTP and click on submit button
  • The page with the best deals will appear.
  • Choose Indian Bank as the loan provider.
  • MyMoneyMantra representatives will provide a handhold through the loan process till the disbursement of the loan.

Also Read - 5 Benefits of Applying for a Home Loan Online

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Indian Bank Home Loan FAQs

✅What security is required for IB Home Loans?

An equitable mortgage of the property created out of the loan will be security for IB Home Loans.

✅What is the minimum age to avail Indian Bank Home Loan?

The minimum age for resident Indians is 18 years and 21 years for NRIs to avail themselves of an Indian Bank Housing Loan.

✅What security is required for IB Home Loans?

An equitable mortgage of the property created out of the loan will be security for IB Home Loans.

✅How much home loan can I get on a 25000 salary?

You can get a loan up to 72 times the gross salary if you are below 45 years and 60 times the gross salary if you are above 45 years, provided the net take-home salary is not less than 40% of the gross income after considering the proposed EMI.

✅What are the other benefits offered by Indian Bank?

IB Home Loan customers who have serviced the loan promptly for a minimum of 12 months can avail of IB Vehicle Loan, IB Clean Loan or IB Pension Loan with a concession of 0.50% in the interest rate as well as processing charges under the IB Home Loan Combo.

✅Is Insurance of the property mandatory to avail Indian bank home loan?

Insurance of the property is not mandatory to avail Indian Bank Home Loan. The option is given to the borrower, and a separate loan will be provided to cover the premium of the Insurance.