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Indian Bank 
Home Loan Interest Rates

Indian Bank offers home loans at affordable interest rates. Indian Bank home loan interest rate starting from 8.40% p.a. offers the perfect platform to buy or construct your dream home. Diversified home loan schemes, low processing charges, easy eligibility conditions and customized interest rates for different customer segments; Indian Bank home loans offer a world of benefits.

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Indian Bank Home Loan Interest Rates Overview

Indian Bank Home Loan Interest Rate is competitive and affordable, making it easier for customers to get their dream home financed. These interest rates are directly linked with the repo rate and are also dependent on the prime base spread. 

The current repo rate stands at 6.50% p.a while the Prime Spread stands at 2.80%. Indian Bank also provides home loans at subsidised rates to women. Several factors affect the final interest rate offered to the customer, including the nature of employment, the current CIBIL score, monthly income, etc.

Indian Bank Home Loan Interest Rates

The Indian Bank Home Loan Interest rate varies according to the customer segment as follows: 

Product NameInterest Rate Range
Home Loan
IB Home Loan to Elite Customers (Rs.15 lakhs & above)8.50% to 8.95%
IB Home Loan to Elite Customers (Rs.15 lakhs & above) – Takeover8.50% to 8.75%
IB Home Loan (CRE) to Elite Customers (Rs.15 lakhs & above)9.00% to 9.45%
IB Home Loan to General Customers9.20% to 9.40%
IB Home Loan CRE to General Customers9.70% to 9.90%
Home Loan Premium
IB Home Loan Premium9.00% to 9.20%
Home Loan to Corporate Entity
Home Loan to Corporate Entity8.60% to 10.10%
Home Advantage
IB Home Advantage to Elite Customers (Rs.15 lakhs & above) – Term Loan8.50% to 8.95%
IB Home Advantage to Elite Customers (Rs.15 lakhs & above) – Overdraft9.50% to 9.95%
IB Home Advantage to General Customers – Term Loan9.20% to 9.40%
IB Home Advantage to General Customers – Overdraft10.20% to 10.40%
Plot Loan
Plot Loan to Elite Customers (Rs.15 lakhs & above)9.70% to 9.95%
Plot Loan to General Customers10.20% to 10.40%
IB Home Improve
IB Home Improve to Elite Customers (Rs.15 lakhs & above)9.00% to 9.45%
IB Home Improve to General Customers9.70% to 9.90%
IB Home Enrich
IB Home Enrich9.40% to 9.95%
Home Loan Plus
IB Home Loan Plus to Elite Customers (Rs.15 lakhs & above)9.00% to 9.70%
IB Home Loan Plus to General Customers9.70% to 10.15%

Also, know about the Indian Bank Mini Statement service.

Compare Indian Bank Home Loan Interest Rates with Top Banks

Before you apply for a home loan, it is always recommended that you compare the interest rates offered by various banks. This allows you to find the best deal that can lower your monthly expenses towards your loan. 

Here is a comparison of home loan rate of interest in Indian Bank with other top banks in India: 

Name of the Lender Rate of Interest Processing Fees
Indian Bank 8.40%Up to 1.18% of the sanctioned loan amount
Kotak Bank Home Loan8.70%0.50% of the sanctioned loan amount plus statutory dues 
Punjab and Sind bank8.95% p.a. onwards0.15% of the loan amount 
LIC Housing Finance 8.50%As is applicable 
SBI Home Loan8.50% - 10.05%0.4% of the sanctioned loan amount, subject to a minimum of Rs.10000 and a maximum of Rs.30000
HDFC Bank Home Loan 8.75% - 9.65%Rs.3000 upfront 
ICICI Bank Home Loan8.75%0.50- 2.00% of the final loan amount. 
Bank of Baroda 8.40% - 10.60%0.25%- 0.50% of the loan amount, subject to a minimum of Rs.8500 and a maximum of Rs.25000

Factors Affecting Indian Bank Home Loan Interest Rates

Indian Bank Home Loan Interest Rate is subject to various factors that are determined by the application form of the applicant. There are some basic eligibility criteria that the customer must fulfil in order to avail of an Indian Bank home loan. Those who satisfy all these criteria are likely to receive a lower Indian Bank Home Loan Interest Rate 2021.  

Here are some of the primary factors that affect the home loan rate of interest in Indian Bank: 

  • Repo Rate: Indian Bank offers floating interest rates that are linked to the repo rate. Therefore, as the repo rates change, so does the final Indian Bank Home Loan Interest Rate offered to the customer. The repo rate is the interest rate at which RBI lends to commercial banks in order to achieve their financial goals. Currently, the repo rate is at 8.30% p.a. When you are borrowing for the long term, a floating interest rate is best for you as there are chances that the Repo rate will drop, thereby reducing the interest that you pay towards the home loan.
  • Job Profile: The nature of employment is one of the most important factors in determining your Indian Bank Home Loan Interest Rate 2020. If you are a salaried individual, the interest rate is lower. On the other hand, the interest rate is higher when you are non-salaried or self-employed. The reason for this is that the repayment capacity of the individual depends upon their profession. With salaried individuals, there is a fixed income each month, which makes them more reliable borrowers. The income may vary in self-employed individuals, especially with those who work in a highly volatile field.
  • LTV Ratio: A home loan does not finance the property fully. There is a margin that the customer needs to pay. LTV or Loan to Value ratio is the final percentage of your property value that the loan will finance. In the case of Indian Bank, you can get up to 80% of the property value as a loan. It is important to note that the higher the quantum of loans, the higher the interest rate. A bigger sum is a bigger credit risk for the bank. On the other hand, if the customer is able to pay a higher down-payment or margin, the quantum of finance and the interest rates reduce significantly. You can use the Indian Bank Home Loan Interest Rate Calculator to understand the final loan quantum and EMI that you are eligible for.
  • Location of your property: The location of the property determines the resale value. This is an important factor with respect to your Indian Bank Home Loan Interest Rate. If the property is located in an area that is well connected and has better amenities, the chances are that the resale value is higher. In this case, the interest rate is also lowered. With a better resale value, the bank gets better security which reduces the overall credit risk. Similarly, a new property has more value than an old property, as the latter has a lower resale value.
  • CIBIL score: When you take any credit, whether it is a loan or a credit card, the repayments made towards them are reported to the Credit Bureau of India. Based on the report presented, a CIBIL score is provided to each customer. If the repayment towards the loan is regular, then your CIBIL score is higher. This indicates that you are a reliable borrower with a good repayment capacity. Therefore, a higher CIBIL score attracts a lower rate of interest.  Other factors like your financial habits and your income add to the CIBIL score as well.
  • Loan Tenure: Home loans are longer-term loans with up to 30 years as the repayment tenure. Now, if you take the entire term for repayment, the interest rate is higher. With a shorter term, the interest rate is low. However, since the EMI payable is higher, most people opt for a higher term. It is advisable to find the right tenure that allows you to pay the loan back faster and reduce the payout towards the interest. Using an Indian Bank Home Loan Interest Rate Calculator can help you figure out the best repayment tenure to suit your requirements.
  • Age: With any term loan that is offered for a longer period, the age of the customer matters. If you are younger, you can enjoy the full term of the loan. This means that your EMI is lower and affordable. Therefore, the chances of missed payments also reduce. Younger applicants are considered a lower credit risk and are, hence, offered a lower rate of interest in comparison to older applicants.

Also Read - Compare Best Home Loan Interest Rates of All Banks in India

Indian Bank Home Loan Fees & Charges

There are some fees that are applicable for the administrative tasks carried out to process your home loan. These fees and charges vary from one institution to another. Besides home loan rate of interest in Indian Bank, these are the additional fees that you have to bear. 

If you are planning to apply for a home loan with Indian Bank, here are the charges that you should take into consideration. 

Name of the Loan Processing Fees

Home Loan to Residents

Home Loan to NRIs

IB Plot Loan to NRIs

IB Home Advantage 

0.40% of the loan amount up to a loan quantum of Rs.100 Lakhs, subject to a maximum of Rs.20000

0.20% of the loan amount for a quantum above Rs.100 Lakhs, subject to a maximum of Rs.50000

IB Home Improve

IB Home Loan Plus

IB HOme Enrich 

Plot Loan to Residents

Repair and Renovation 

1.00 of the final loan amount sanctioned 
IND Awas

For EWS/LIG

  • Up to Rs. 6 Lakhs- NIL
  • Above Rs. 6 Lakhs- 50% of the regular HL, subject to a maximum of Rs.10000.

For MIG-1

  • Up to Rs. 9 Lakhs- NIL
  • Above Rs. 9 Lakhs- 50% of the regular HL, subject to a maximum of Rs.10000.

For MIG-II

  • Up to Rs. 12 Lakhs- NIL
  • Above Rs. 12 Lakhs- 50% of the regular HL, subject to a maximum of Rs.10000.

When customers opt for home loan combos, including plans like Vehicle Loan, IB Pension Loan, IB Clean Loan, and IB Home Improve,  they can get a concession of 50% on the current processing charges applicable. 

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FAQs

✅ Does Indian Bank offer fixed or floating interest rates?

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Indian Bank offers both fixed and floating interest rates depending upon the type of home loan product. Floating interest rates are linked to the Repo Rate. 

✅ What is the minimum income required for an Indian Bank Home Loan?

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The net take-home after the EMI proposed should not be less than 40% of the gross annual income. The minimum annual take-home pay required to be eligible for these loans is Rs.6.00 Lakhs. 

✅ What are the processing charges for Indian Bank Home Loan Interest Rates?

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The processing charges of Indian Bank Home Loans vary between 0.40%- 1.00% depending upon the type of loan that you apply for.

✅ How can I reduce the Home Loan Interest Rates?

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There are some options to reduce the final interest rate offered by Indian Bank: 

  • Ensure regular repayments towards existing loans and credit cards. 
  • Avoid maxing out your credit cards as it affects your CIBIL score. 
  • Show multiple income sources, including possible bonuses or salary hikes that you can expect. 
  • Apply for a joint home loan to take your income and the income of the co-applicant into consideration. 

✅ What is LTV?

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LTV or Loan To Value is the maximum loan quantum that can be provided based on the value of the property. This is a percentage of the property value, which goes up to 80% at Indian Bank.