IOB Loan Against Property
Apply for an Indian Overseas Bank (IOB) loan against property of up to Rs 10 crore at an interest rate starting at 9.90% - 10.90% p.a. IOB disburses highly customized mortgage schemes at affordable EMIs for professionals and self-employed borrowers. You can avail funding up to 50% of the property value with nominal processing fees & easily meet the Loan Against Property Eligibility Criteria. You can also use an online EMI calculator to determine your eligibility.
Apply for an IOB Loan Against Property at Attractive Interest Rates
Indian Overseas Bank Loan Against Property Details
| Loan Amount | Rs. 40 Crore |
|---|---|
| Rate of Interest | 9.85% p.a. |
| Tenure | Up to 15 Years |
| Processing Fee | 0.50% of the loan amount (maximum Rs. 50 Lacs) + applicable taxes |
IOB Loan Against Property Interest Rates and Charges
Interest Rate for Loan Against Property and Mortgage-Easy Trade and Finance are:
- For a loan up to 1 Crore: 9.85% p.a.
- For a loan above 1 Crore: 11.00% p.a.
Interest for Mortgage Liquirent (Loan Against Rent Receivables):
- For a loan up to 36 months: 10.65% p.a.
- For a loan above 36 months: 11.15% p.a.
| Type of charge | Description |
|---|---|
| Processing fees | Loan Against Property and Mortgage-Easy Trade Finance:
Mortgage-Liquirent: 0.75% of the loan amount |
| Prepayment charges |
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| Mortgage charges | 0.62% of the loan amount, with a maximum of 10,000. |
| Charges for issuing copies of documents |
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| Charges for issuing NOC |
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| Charges for the 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. |
Types of Indian Overseas Bank Loan Against Property
There are three types of Loan Against Property available at India Overseas Bank:
- Loan Against Property
- Mortgage
- Mortgage-Liquirent (Loan Against Rent Receivables)
Features of the Indian Overseas Bank Loan Against Property
The features of the 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 10 Crores | The rate of interest is 10.95% p.a. for a loan up to 1 Crore and 11.45% 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 |
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| Mortgage-Easy Trade Finance |
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| 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. |
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Benefits IOB Loan Against Property
The advantages of taking an Indian Overseas Bank Loan Against Property are:
- Simple processing and quick approval
- Competitive rate of interest
- A loan is available both for residential and loan against 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
Indian Overseas Bank Loan Against Property Eligibility Criteria
You will have to comply with the eligibility criteria listed below if you have to be eligible for an 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 accountants, 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.
- The applicant should have a valid lease agreement for leasing 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.
Documents Required for Indian Overseas Bank LAP
The following documents have to be submitted along with an application for a 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 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
Security Required for IOB Loan Against Property
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.
FAQs
To apply for the Indian Overseas Bank Loan Against Property, you will have to
- Fill up the relevant application form
- Attach the required KYC, income, and property documents
- Submit the above to the nearest branch of IOB
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.
- Processing charges: For Loan Against Property and Mortgage-Easy Trade Finance, the processing charges collected will be 0.60% of the loan amount for a loan up to 5 Lakhs and 0.75% of the loan amount for a loan above 5 Lakhs. For Mortgage-Liquirent, the processing charges collected will be 0.75% of the loan amount.
- Pre-payment charges: No pre-payment charges for loans availed by individuals at a floating rate of interest. For loans availed by individuals and non-individuals at a fixed rate, pre-payment charges will be collected at 2% of the prepaid amount.
- Mortgage charges: 0.62% of the loan amount, with a maximum of 10,000
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.
The interest rate for Indian Overseas bank loans against property ranges from 9.90% - 10.90% p.a at present.