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Indian Overseas Bank Home Loan Details

Loan amountUp to 90% of Property Value
Rate of interest7.95% onwards
TenureUp to 30 years
Lowest EMI possibleRs. 730 Per Lakh
Processing fee0.50%
Foreclosure ChargesNil for floating rates
Penal Interest Rate2% per month

You can also Apply for 20 Lakh Home Loan

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 7.95% 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.

Additional Info: Also check DDA Housing Scheme

Indian Overseas Bank Home Loan Interest Rates

Linked to the bank's 1 year MCLR or Marginal Cost of Funds based Lending Rate, the home loan interest rates on different housing schemes at Indian Overseas Bank are as follows:

Housing Loan
  • Up to 30 Lakhs: 1-Y MCLR = 7.95%
  • 30 Lakhs to 75 Lakhs: 1-Y MCLR + 0.10% = 8.05%
  • Above 75 Lakhs: 1-Y MCLR + 0.25% = 8.20%
Home Improvement Scheme
  • Up to 2 Lakhs: 1-Y MCLR + 0.20% = 8.15%
  • Above 2 Lakhs: 1-Y MCLR + 0.35% = 8.30%
Home Décor1-Y MCLR + 2.75% = 9.80%
Subagruha Top up Loans1-Y MCLR + 3.50% = 10.15%

Additional Info: Also check AnyRoR Gujarat Land Record

Types of Indian Overseas Bank Home Loans with Their Eligibility Criteria

Details of the same are given below with their eligibility criteria:

Housing Loan

PurposeTo 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 taking a plot loan.
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.
TenureUp 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 LTVUp to 90%

NRI Home Loan

PurposeTo 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 Rs. 20 Lakhs: 90%
  • For loans up to Rs. 75 Lakhs: 80%
  • For loans above Rs. 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 Rs. 10,000.
TenureFor 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 LTVUp to 80%

Home Improvement Scheme

PurposeTo repair/renovate/upgrade/modify an existing house/flat through painting, rewiring, fixing marbles, changing the tiles, making additions, etc.
Loan amount
  • Minimum Rs. 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 period3 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

PurposeIt 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 amount75% 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 Rs. 30,000.
TenureUp 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.
Margin10% 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

PurposeUnder 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 amount75% 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.
TenureUp 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.
Margin10% 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 Decor

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 Rs. 2 Lakhs, whichever is less (on providing the third party guarantee).
  • 10 times of the gross monthly income of the borrower or Rs. 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.
TenureUp 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

PurposeTo provide top on housing loans for existing Home Loan customers of the bank for funding additional financial needs.
Loan amount
  • Minimum: Rs. 50,000
  • Maximum: Rs. 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

PurposeThis 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 amountThe 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 Rs. 5,000 with regular transactions in the accounts OR maintain their salary account with the bank.
TenureUp to 30 years
Holiday periodUp 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.
Margin10% 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.

Additional Info: Also check Banglarbhumi West Bengal Land Record

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.

Additional Info: Also check Documents Required For Home Loan

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 ChargeSchemeQuantum
Processing feesHousing Loan, Subhagruha Gen Next Housing Loan, Subhagruha Housing Loan CC, Home Improvement Scheme, NRI Home Loan, Home Décor
  • Loan up to Rs. 75 Lakhs: 0.50% of the loan amount (maximum 20,000)
  • Loans above Rs. 75 Lakhs: 0.50% of the loan amount (maximum Rs. 25,000)
  • NIL for Loans to Air Force personnel
Subhagruha - Top-up loansIrrespective of the amount: 0.75% of the loan amount (maximum Rs. 25,000)
IOB-Gharonda (PMAY-Housing for All (Urban)) Credit Linked Subsidy Scheme
  • EWS and LIG - Loans Up to Rs. 6 Lakhs: 3,000
  • MIG I - Loans up to Rs. 9 Lakhs: 2,000
  • MIG II - Loans up to Rs. 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 Rs. 20,000)
Prepayment/Foreclosure chargesFor takeover/pre-closure of loans availed in individual nameNil
For others (including proprietary firm)2% of the prepaid amount

Additional Info: Also check Sukanya Samriddhi Yojana

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.

Additional Info: Also check SBI Home Loan EMI Calculator

Indian Overseas Bank Home Loan Comparison with Other Lenders

LenderMaximum Loan AmountMaximum TenureInterest RateProcessing Fee
Indian Overseas BankUp to 90% of property cost30 years7.95%0.50% + GST
ICICI Bank Home LoanUp to 90% of property cost30 years7.60% - 8.45%0.50% - 2% or Rs. 1,500 (Rs. 2,000 for Mumbai, Delhi & Bangalore), whichever is higher + GST
HDFC LtdUp to 90% of property cost30 years7.55% - 8.05%Up to 1.50% or Rs. 4,500 (whichever is higher) + applicable taxes
Axis Bank Home LoanRs. 5 Crores30 years7.70% - 8.05%Up to 1%, minimum Rs.10,000
Kotak Mahindra Home Loan75% to 90 % of property value30 years7.50% - 8.10%O.5% to 2.0 % + GST 

Additional Info: You can also avail Canfin Home Loan

Indian Overseas Bank Home Loan Customer Care

For more details on Home Loans, contact the 24 x 7 customer care number of the Indian Overseas Bank - 1800 425 4445.

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Indian Overseas Bank Home Loan FAQs

✅ Is it possible to foreclose my Indian Overseas Bank Home Loan? Are there any charges involved?

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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?

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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?

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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?

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You can avail a maximum of Rs. 2 Crores under Subagruha Top up Loans.

✅ What is the maximum repayment tenure available for Subhagruha Gen Next Housing Loan?

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You can repay this loan within a maximum tenure of 30 years.