Indian Overseas Bank
Loan Against Property

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:

• Loan Against Property
• Mortgage
• Mortgage-Liquirent

The features of India Overseas Bank Loan Against Property are:

The advantage of taking an Indian Overseas Bank Loan Against Property are:

• Simple processing and quick approval
• Competitive rate of interest
• A loan is available both on residential and commercial property
• The loan can be availed in joint names with a maximum of 2 joint borrowers
• Easy documentation
• Flexible repayment options
• No hidden charges

You will have to comply with the criteria listed below if you have to be eligible for IOB Loan Against Property:

• The entry age of the applicant for the loan is 20 years and above.
• The minimum income required for salaried individuals is 30,000 p.m., with a minimum experience of 2 years with the present employer.
• High net-worth individuals, self-employed professionals like engineers/architects/chartered accountant, salaried individuals employed with government organisations/PSUs/state and local bodies, select reputed private limited companies/MNCs, and professors of colleges/universities, are eligible for the loan.
• The applicant should be the owner of the property
• For Mortgages-Liquirent, i.e, loan against rent receivables, the property rented out to individuals, banks, MNCs, PSUs, Government Organisations, IOB branch office and Officers' Quarters of IOB, is eligible for the loan.
• Applicant should have a valid lease agreement for having leased out the property
• The rent and the property should be unencumbered
• The applicant and the tenant occupying the property should be creditworthy
• Proprietorship/Partnership Firms/Companies engaged in retail trade are eligible for Mortgage-Easy Trade Finance.

Interest Rate for Loan Against Property and Mortgage-Easy Trade and Finance are:

• For a loan up to 1 Crore: 10.70% p.a.
• For a loan above 1 Crore: 11.20% p.a.

Interest for Mortgage Liquirent:

• For a loan up to 36 months: 11.20% p.a.
• For a loan above 36 months: 11.70% p.a.

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

• Aadhar Card
• Passport
• Voter's ID Card
• Driving Licence
• Pan Card
• Utility Bills
• An ID issued by the Employer
• Business Proof, like GST Registration, Memorandum of Association, Articles of Association and Partnership Deed depending on the constitution of the business entity.

Income proof for the salaried individuals

• Salary slips for the last 6 months
• Form 16 and ITR for the last 2 years
• Bank Account statement for the last 6 months

Income documents for the self-employed individuals/professionals and businessmen

• Income Tax Returns with Income computation for the last 3 years
• Audited Balance Sheet and Profit and Loss Account for the last 3 years
• Bank Account Statement of both the individual and business accounts for the last 12 months
• Bank Account Statement of loan accounts for the last 12 months

Property documents

• Copies of the chain of title deeds of the property against which the loan is provided
• Approved building plan
• In the case of Mortgage-Liquirent copies of the lease deeds of the property

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:

• Lowest processing, pre-payment, mortgage, and documentation charges
• Quick turnaround time
• Competitive rate of interest
• Flexible closure and prepayment terms

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:

• Access the MyMoneyMantra website and choose the EMI Calculator among the various calculators.
• Provide the details of loan amount, interest and loan tenure, and click Calculate button
• The EMI will be calculated and displayed instantly
• A list of best quotes will also appear on the screen
• You can try various parameters as per the quotes available and arrive at the EMI that is convenient for your monthly budget.
• With this ordeal of selecting the loan provider completed, you proceed for filling the loan application.
• The team of MyMoneyMantra will help deliver the loan application along with the documents to the loan provider and will stay with you till the loan is disbursed.

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:

• The EMI calculation will not be time-consuming
• You can access the calculator any time and from anywhere
• You can be assured of 100% accuracy