To check Indian Bank Home Loan Eligibility, share your income, home loan requirement, tenure and property details on Home Loan Eligibility Calculator. Instantly you can know about preapproved home loan amount and EMI online. Currently Indian Bank offers attractive home loan interest rates starting from 7.55% p.a for maximum of 30 years. Other benefits include low processing fee at 0.2%, minimal documentation and concessional interest rate for women applicants.
The Indian Bank is a high performing top-level government-owned bank in India. The bank was established in 1907 in Chennai for offering various financial services. It is one of the banks which has also established overseas branches and provides its products across borders.
Getting your own house is an aspiration that a lot of people have. With the growing property rates, it's difficult to purchase property with no financial backing. Home Loans provide a great solution for people looking to fulfil their aspiration of a self-owned house. Indian Bank provides such Home Loan solutions for people so they can avail the financial capital required so that their aspirations are met. Indian Bank provides personalised service for Home Loan borrowers and can set up customised plans according to the individual needs.
Below are some eligibility criteria to avail a home loan in Indian Bank.
Below are the features of a Home Loan in Indian Bank:
|Purpose||Purchase of property, land, construction of new property, etc.|
|Loan amount||Up to 60 times of gross monthly income the property value. But, customer should be able to take 40% of the gross monthly income.|
|Tenure||Max up to 30 years in case of loans applied for purchase/construction of house and up to 120 months in case of loan applied for renovation of property.|
|Minimum age criteria||18 years|
|Maximum age criteria||70 years|
|Income eligibility||Anticipated EMI should be 40% of net take-home income|
|Interest rate||Starts from 8.20%|
|Processing fee||Up to 0.23% of loan amount with a maximum of 20,470|
|Prepayment charges||Nil in case of floating rate loans|
You will have to submit the relevant documents along with your Home Loan application in order to get your loan application cleared.
Note: This is not an exhaustive list. Indian Bank can ask for other essential documents as well.
Even if the applicant meets all the eligibility criteria mentioned above, the loan application can still be rejected based on some factors mentioned below:
Having a good credit score is very crucial to getting a loan disbursed. Credit score is an indication of your financial stability and confidence. It shows how financially prepared you are and how you have handled your finances so far. A good credit score can give you great points on your loan application
Indian Bank needs to ensure that the borrower is able to repay the loan without any doubt. So, in case of the borrower having any existing debts to pay off, there is a small chance that your loan application will be rejected. You will have to make sure to clear off any or all existing debts before you can apply for your Home Loan. In case you cannot clear it off, you will need to be able to present that you will be able to pay for the instalments of both loans. This is also true if you have signed as a guarantor for someone else
Banks require you to be financially stable to pass your loan application. That is why, if you have just started with your business or just joined a new workplace, it will reflect negatively on your application. Indian Bank asks for 3 months of IT returns as well and 6 months worth of proof of Income. That's why it is safer to have a couple of years of experience before you can apply for a loan
Even if you have an appropriate monthly income, your loan application can still be rejected if you have a lower take-home salary. The banks will check all your liabilities and if you have very little left after paying off your liabilities, your application won't pass through. Indian Bank requires that the anticipated EMI should be not more than 40% of your take-home salary
Indian Bank has a pre-approved list of employers. These are employers that have been thoroughly vetted and considered safe and reliable. If the applicant's employer is not present in this list, there is a chance that the loan application might be rejected
The property to be purchased is usually the one which is taken as mortgage for the Home Loan by Indian Bank. This is why the property will be thoroughly checked by the bank. The bank will ask for all original documents related to the property and if they find any issues with the property, the loan will likely be rejected. It is important that the property is verified and check properly
If the applicant has missed any EMI previously or has been late for any kind of payments, it is going to reflect badly on your credit report. Missed payments have a negative effect on your credit score and if your credit score gets lowered, your chances of getting your loan disbursed are reduced.
Even if you feel that you have satisfied all the eligibility criteria, there is still a minute possibility that your loan is rejected. This can be due to many reasons and the fact is that the decision is entirely of the bank. What you can do is to make sure that your claim is as strong as possible. Below are mentioned some factors that can affect your Home Loan application.
Get a complete financial assessment done:
Getting a clear view of your financial history and status is very important before you apply for a Home Loan. It is wise to know exactly what liabilities you have as opposed to your income sources and just how much of a disposable income can you spare without inconveniencing yourself
When you apply for a Home Loan, your entire financial history is checked out by the banking officials. Every previous credit utilization and repayment is checked to get an overview of your financial stability. So, before applying for a new loan, it is advisable to check your updated credit report. By doing this, you will be aware about your credit score as well. To avail any loan from a bank or financial institution, credit score plays as one of the most important factors.
Have a co-applicant:
If you apply for a Home Loan jointly with someone, your chances of getting your loan application accepted is significantly higher, especially if your co-applicant has a good credit score. The income of your co-applicant gets added to your total income and both of you become responsible for repayment. This divides the burden of repayment as well and also gives the bank a little more confidence in your loan application
Have a thorough application:
Home Loans are usually high amount and high tenure loans. The repayment window is generally 20-30 years and you have to keep into account that you will have to pay EMIs consistently till that time. This means that you have to make sure that the loan amount you apply for is something that you are going to be completely comfortable with for a long term basis.
EMI (Equated Monthly Instalments) stands for the monthly amount the bank will get from the borrower as repayment for the loan disbursed. The EMI amount depends on the principal amount, the rate of interest and the tenure. Usually, the longer the tenure, the high the rate of interest, and the low the EMI amount. This is because your total amount is divided as per your tenure. EMI amount is crucial as this is the amount that you will have to pay to the bank consistently every month and you have to make sure that you still stay financially secure long term.
EMI amount is calculated as shown below:
E = P.r.(1+r)^n/((1+r)^n-1)
Where E = EMI anount
P = Principal loan amount
R = rate of interest
N = Tenure in months
The calculation for the EMI can be fairly complicated. This is why a lot of vendors provide an easy to use EMI Calculator to help the borrower get a for idea of the EMI he will be required to pay. The EMI Calculator also makes it easy for the borrower to check and determine the ideal combination of the interest rate and tenure the borrower is list comfortable with. The EMI Calculator can be an important tool to help with your loan application process.
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Provided that you have accurately entered all the inputs asked for in the calculator, the EMI Calculator will return an accurate EMI amount. The final amount, however, is determined by the bank and might have just a very minuscule difference to the one calculated. Note that there are other charges too, like processing charges, which, while not added to your EMI can be an added expense.
Home Loans carry with a lot of tax benefits as Home Loans are provided for people to be able to buy their dream house. Under Section 24 of the Income Tax Act, 1961, you can claim up to 2 Lakhs as exemption on the interest paid. Under Section 80C of the Income Tax Act, 1961, you can claim up to 1.5 Lakhs every year on the principal amount as exemption.
Part-payment of Home Loans is when you pay an amount, which is greater than your EMIs but not completely the amount you have to repay. Part-payment is usually allowed for Home Loans at NIL prepayment charges provided you have opted for a floating rate loan. Indian Bank has a cap on the number of times part payment can be done, so, it is best to check with the bank representative itself.
Loan applications these days are very simplified because of the many ways you can get support for. You can apply for the loan online, but for rest of the formalities, customer may be required to visit the nearest bank branch. Also, the loan application process might vary from one bank to another.
The most important thing for your Home Loan disbursal is your financial capability to pay it off. One factor that can affect it is the number of dependencies you have. You will have to make sure that you will have enough to repay the loan even after considering your liabilities and dependence.
There are 2 ways of making EMI payments: