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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 as low as 7.55% 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 8.30% 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 2021 varies according to the customer segment as follows: 

Type of Home Loan Customer Segment Interest rates
IB Home Loan 

Salaried- 

  • Women- 7.00%- 7.20%
  • Others- 7.20%- 7.25% onwards

Non-salaried- 

  • Women- 7.05- 7.15%% onwards
  • Others- 7.25%- 7.40%
IB Home Improve
  • Women- 9.00% onwards
  • Others- 9.15% onwards
IB Home Loan Plus 
  • For salaried women- 8.60% onwards
  • For non-salaried women- 8.85% onwards
  • Others- 9.25% onwards
IB Home Enrich 
  • For salaried women- 7.00% onwards
  • For non-salaried women- 7.25% onwards
  • Others- 7.55% onwards
Ind Mortgage 
  • For women- 10.50% onwards
  • Others- 10.65% onwards
IB Rent Encash
  • For women- 10.40% onwards
  • Others- 10.25% onwards
Plot Loan 

Salaried- 

  • Women- 8.00%- 8.25%
  • Others- 8.20%- 8.45% onwards

Non salaried- 

  • Women- 8.05%- 8.45% onwards
  • Others- 8.25%- 8.50%
Home Loan CRE

Salaried- 

  • Women- 7.65%- 7.90%
  • Others- 7.70%- 7.95% onwards

Non salaried- 

  • Women- 7.70%- 7.95% onwards
  • Others- 7.75%- 8.00%
Ind Awas

Women (Salaried/ Non Salaried)- 6.65%

Others (Salaried / Non Salaried)-  7.00%

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 7.55% onwardsUp to 1.18% of the sanctioned loan amount
Kotak Mahindra Bank6.65% onwards0.50% of the sanctioned loan amount plus statutory dues 
Punjab and Sind bank6.66%0.15% of the loan amount 
LIC Housing Finance 6.66%As is applicable 
State bank of India6.75%0.4% of the sanctioned loan amount, subject to a minimum of Rs.10000 and a maximum of Rs.30000
HDFC Bank 6.75%Rs.3000 upfront 
ICICI Bank6.75%0.50- 2.00% of the final loan amount. 
Bank of Baroda 6.75%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. 

Indian Bank Home Loan Balance Transfer Interest Rates

A home loan balance transfer is when a bank takes over the customer’s existing home loan. For a balance transfer to Indian Bank, the customer must fulfil certain requirements: 

  • The transfer is possible only for completed buildings that have been taken over by the applicant.
  • A minimum of 12 EMIs should be cleared from the date of commencement.
  • All securities provided to the current bank or financial institution should be available.
  • Take over from co-operative societies is not possible.

The Indian bank home loan interest rate 2021 on the home loan balance transfer depends upon the type of loan that the customer opts for. The charges are according to the current rates offered for the specified loan as mentioned above. 

Indian Bank EMI Calculator

If you are unsure of the EMI payable towards the home loan, it is always good to check before you apply. This ensures that the loan does not become a burden on you and your family. 

The Indian Bank Home Loan Interest Rate Calculator is a very useful financial tool that can be used easily. Select the loan tenure, repayment tenure, and the interest rate applicable based on your eligibility criteria. The home loan calculator uses the current formula applicable to give you the accurate EMI payable towards your loan. 

Calculating your EMI before applying for a loan has several benefits: 

  • It allows you to plan your monthly budget easily.
  • You can apply only for loans that are affordable to you and have a maximum chance of approval.
  • Maintain your CIBIL score by preventing multiple applications and ensuring regular repayments towards the loan.

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

How to Apply for Indian Bank Home Loan?

There are two options available to apply for an Indian Bank Home Loan: 

Online

  • Log on to www.indianbank.in
  • Under personal loan products, choose the home loan that you wish to apply for.
  • Fill up the application form with the necessary details.
  • Upload basic forms and submit.
  • Once the loan application has been processed, you will be contacted by representatives of the Indian Bank.

Offline 

  • Visit an Indian Bank branch close to you
  • Fill up an application form and submit it with the necessary documents.
  • Once the loan application has been processed and sanctioned, the final amount is disbursed into your account.

Also Read - 10 Smart Ways for Managing Home Loan EMIs

Best Value Home Loans

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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.