Indian Overseas Bank

Indian Overseas Bank Loan Against Property

Apply Indian Overseas Bank  Loan Against Property

About 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.

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

Features Indian Overseas Bank Loan Against Property

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

  • Processing charges: 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.
  • Prepayment charges: No prepayment charges for loans availed by individuals at a floating rate and for a loan availed by individuals and non-individuals the prepayment charges will be 2% of the prepaid amount.

Mortgage-Easy Trade Finance

  • The loan is extended only to individuals and business entities engaged in retail trade.
  • The loan is provided both as an overdraft facility and a term loan.
  • The overdraft facility has to be used for working capital requirements of the business and the term loan for setting up the business, purchase of equipment required for the business and for expansion of the business
  • The minimum quantum provided will be 1 Lakh and the maximum quantum will be 1 Crore.
  • Both the term loan and the working capital limit put together should not exceed 1 Crore.
  • In rural branches the maximum loan permitted is 10 Lakhs.
  • The margin stipulated is 10% for LICP and Term Deposits and 20% for KVP/IVP/NSC.
  • The margin stipulated for the property is 30%.

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.

  • Assignment of the future rent receivables for the unexpired period, if the loan is up to 2 Lakhs and additional security by way of mortgage of the leased-out property if the loan is above 2 Lakhs.
  • Power of Attorney has to be executed by the lessor in favour of the bank to receive the rent directly from the lessee.

The maximum repayment period is 10 years or the unexpired lease period whichever is earlier.

  • Processing charges: 0.75% of the loan amount.
  • Prepayment charges: No prepayment charges for loans availed by individuals at a floating rate and for a loan availed by individuals and non-individuals the prepayment charges will be 2% of the prepaid amount.

Advantage of Taking Indian Overseas Bank Loan Against Property

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

Eligibility for Indian Overseas Bank Loan Against Property

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 and Charges for Indian Overseas Bank Loan Against Property

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.
Type of charge Description

Processing fees

Loan Against Property and Mortgage-Easy Trade Finance:

  • For a loan up to 5 Lakhs the charges are 0.60% of the loan amount.
  • For a loan above 5 Lakhs the charges are 0.75% of the loan amount.

Mortgage-Liquirent:

0.75% of the loan amount

Prepayment charges

  • No pre-payment charges for loans availed in individual names at a floating rate.
  • For loans availed by individuals and non-individuals at a fixed rate: Charges at 2% of the prepaid amount.

Mortgage charges

0.62% of the loan amount with a maximum of 10,000.

Charges for issuing copies of documents

  • If the presence of the bank official is required, the charges will be actual xerox charges plus 1,000.
  • Charges if the copies are sought by the customer: Actual xerox charges plus 500.

Charges for issuing NOC

  • No charges for priority sector loans
  • 200 for non-priority loans to individuals/firms/companies.

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.

Security Required for Indian Overseas Bank 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.

Documents Required for Indian Overseas Bank LAP

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

Why Apply for Indian Overseas Bank Loan Against Property through MyMoneyMantra?

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.

How to Use MyMoneyMantra Loan Against Property EMI Calculator?

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.

Why Use the Loan Against Property EMI Calculator?

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

FAQs - Indian Overseas Bank Loan Against Property

How to apply for the Indian Overseas Bank Loan Against Property?

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

How to check the status of the Indian Overseas Bank Loan Against Property application?

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.

What are the charges collected for the Indian Overseas Bank Loan Against Property?

The charges collected are:

  • 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 pre-paid amount.
  • Mortgage charges: 0.62% of the loan amount with a maximum of 10,000

What is the maximum loan amount provided for the Indian Overseas Bank Loan Against Property?

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.

What is the maximum repayment tenure provided for the Indian Overseas Bank Loan Against Property?

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.

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