Indian Overseas Bank was established in the year 1937 to encourage foreign exchange and overseas operations. The bank has emerged as one of the largest nationalized banks and has gained the admiration of its customers with the range of products that have been introduced to cater to the requirement of each and every sector and individual. If you have invested in a property and it is unencumbered, it can go a long way in coming handy when in need of emergency funds either for business operations or for personal requirements. Indian Overseas Bank has devised the product, i.e., mortgage loans, where a loan will be provided at a low interest rate to fund your personal or business requirements. The loan is also provided against the future receivables of the property against which the loan will be given. You can either be an owner of a residential or commercial property to avail of this loan.
There are three types of Loan Against Property available at India Overseas Bank:
The features of India Overseas Bank Loan Against Property are:
|Name of the product||Purpose||Quantum||Interest||Security||Repayment||Charges|
|Loan Against Property||To meet any personal financial requirements or for the creation of assets||The maximum loan provided will be 50% of the value of the property with a maximum of 2 Crores||The rate of interest is 10.70% p.a. for a loan up to 1 Crore and 11.20% for a loan above 1 Crore||Equitable Mortgage of the Property against which the loan is granted||The entire loan has to be repaid within a period of 7 years. No moratorium for the loan|
|Mortgage-Easy Trade Finance||Equitable mortgage of the property against which the loan is granted and/or assignment of LICP or life insurance policies of any private insurance company approved by IRDA, IVP, KVP, NSC and Term Deposit.||The term loan has to be paid within 48 months and the overdraft will be reviewed and renewed every year.|
|Mortgage Liquirent||It can be used for any purpose except for speculation. There is no restriction on end-use.||The maximum loan provided will be 75% of the future rent receivables for the unexpired lease period minus TDS and the advance rent received.||For a loan up to 36 months, the rate of interest will be 11.20% p.a. and for a loan above 36 months, the rate of interest will be 11.70% p.a.||The maximum repayment period is 10 years or the unexpired lease period whichever is earlier.|
The advantage of taking an Indian Overseas Bank Loan Against Property are:
You will have to comply with the criteria listed below if you have to be eligible for IOB Loan Against Property:
Interest Rate for Loan Against Property and Mortgage-Easy Trade and Finance are:
Interest for Mortgage Liquirent:
|Type of charge||Description|
Loan Against Property and Mortgage-Easy Trade Finance:
0.75% of the loan amount
|Mortgage charges||0.62% of the loan amount with a maximum of 10,000.|
|Charges for issuing copies of documents|
|Charges for issuing NOC|
|Charges for release of mortgaged securities on the closure of the account.||3,000 for loans up to 25 Lakhs and up to 50 Lakhs and 5,000 for loans above 50 Lakhs.|
Equitable Mortgage of Property and/or assignment of liquid securities like Life Insurance Policies of LIC or any other private insurance company approved by IRDA, NSC, KVP or IVP.
In the case of Mortgage Liquirent, in order to receive the rent directly from the lessee, the lessor has to execute a Power of Attorney in favour of the bank.
The following documents have to be submitted along with an application for Loan against Property and two passport size photographs of the borrower. The KYC and income documents have to be submitted for both the borrower and the co-borrowers.
KYC documents for both salaried and the self-employed individuals
Income proof for the salaried individuals
Income documents for the self-employed individuals/professionals and businessmen
Before applying for a loan, you will have to shop around to understand the various offers and deals available in the market. At present, the lending scenario has changed with a lot many players in the market. Each lending institution has its own rate of interest and schedule of charges. To mark the best deal out of the available list you will have to do through research, which is a laborious task.
MyMoneyMantra will help with this tedious task by providing you the comparative data on a single screen on its website. You can do the study at any time and anywhere at your comfort. The team at MyMoneyMantra will help you choose the best deal based on your personal data, repayment capacity and income. With the vast experience, the team will be able to help you to choose a lender who gives you the advantage of the following:
The loan specialists at MyMoneyMantra will assess your personal profile and your repayment record and advise accordingly. They will help you understand the credit policy of the lender you have chosen and will also help you understand the fine print in the loan agreement where the offers seem overly attractive.
Calculating the EMI for the loan amount that you require is very essential to understand your eligibility. If the EMI for the desired loan amount is very high and is not within your reach, you can try various parameters as per the comparative data of various lenders available on the website. For calculating the EMI using MyMoneyMantra EMI Calculator, you will have to follow the steps detailed below:
To be aware of the additional expense by way of the proposed EMI to your monthly budget is very essential to plan your expenses so that the monthly budget is not disturbed. For this, you will have to first calculate the EMI for the desired loan amount. Manual calculation of EMI involves applying the formula which is a very complicated and confusing ordeal. With the comparative data, you will have to repeat this ordeal several times before you arrive at a suitable EMI.
EMI calculators were devised to simplify this ordeal. This financial tool is very simple and easy to use. You need not be tech-savvy to use this tool. All you have to do is to access the website of the loan aggregators, choose the EMI Calculator and provide the input required, i.e., the loan amount, loan tenure and the interest. The EMI will be calculated within no time and even repeated calculations will not be time-consuming.
The advantages of using EMI calculator are:
Know how good your score is
Get insights on how to improve it
Unlock offers as per your score
Up to Rs. 5 Crore loan against property can be availed by Salaried and self-employed applicants online as well as offline. The LAP can be used for applied for business expansion, long term working capital, debt consolidation, equipment purchase, medical exigency, education/ marriage of children, holiday and much more. Higher loan amounts are available for select customers.
To apply for the Indian Overseas Bank Loan Against Property, you will have to
To check the status of the loan application you can call the toll-free number 1800 425 4445. On providing either your mobile number and date of birth or the loan application reference number the status of the application can be got.
If you are an existing customer of the bank you can check the loan application status through net banking. You can check the loan status under the loans tab in the net banking portal.
The charges collected are:
The maximum loan quantum provided for Loan Against Property is 50% of the market value of the property with a maximum of 2 Crores. The maximum loan quantum provided for Mortgage-Easy Trade Finance is 1 Crore for both the term and the overdraft facility put together. The maximum loan amount provided in rural branches is 10 lakhs for Mortgage-Easy Trade Finance. The maximum loan quantum provided for Mortgage-Liquirent is 75% of the future rent receivables for the unexpired lease period.
The maximum tenure provided for Loan Against Property is 7 years. For Mortgage-Easy Trade Finance the maximum tenure provided for a term loan will be 7 years and the overdraft facility has to be renewed each year. For Mortgage-Liquirent, the maximum repayment period will be 48 months or the unexpired lease period, whichever is earlier.