IOB Home Loan Interest Rate

The key highlights of Indian Overseas Bank housing loan interest rate are:

Last modified on 19 July, 2024. Source: Indian Overseas Bank Website

IOB offers varied interest rates for different types of loan products. The latest Indian Overseas Bank home loan interest rates for each of its home loan schemes are listed below:

1) Interest Rates for IOB Subhagruha Home Loan including NRI Home Loan

Given below are the home loan interest rates for IOB Subhagruha Home Loan, including Nri Home Loan

Last modified on 19 July, 2024. Source: Indian Overseas Bank Website

2) IOB Subagruha CC Loan Interest Rates

The table below shows the latest interest rates for IOB Subagruha CC Loan:

Last modified on 19 July, 2024. Source:Indian Overseas Bank Website

3) IOB Home Advantage Loan Interest Rates

Given below are the IOB Home Advantage Loan Interest Rates:

Last modified on 19 July, 2024. Source:Indian Overseas Bank Website

4) IOB Home Improvement Loan Interest Rates

Given below are the latest interest rates for the IOB Home Improvement Loan:

Last modified on 19 July, 2024. Source: Indian Overseas Bank Website

5) IOB Home Decor Loan Interest Rates

Given below are the home loan interest rates for IOB Home Decor loan:

Last modified on 19 July, 2024. Source:Indian Overseas Bank Website

Given below are the different types of Indian Overseas Bank home loans, along with their eligibility criteria:

The Indian Overseas Bank has an all-inclusive home loan scheme for the purchase or construction of new or old flats. It facilitates the ownership of a maximum of two houses. The age of the house being purchased must not exceed 25 years. It also allows the loan facility to construct additional rooms or floors in already-owned houses. There is no maximum cap on the amount of loan you can get. It is limited by the cost of the property. For new homes, you can get up to 90% of the value as the loan amount. You must check your eligibility first to determine whether you qualify for the loan quantum of your choice. The Indian bank housing loan rate is determined based on your income and credit score. 

• Eligible Applicants: Salaried/Professionals/Agriculture/Trade/Business owners/Self-employed
• Age Criteria: Maximum age: 60 years
• Quantum loan for new property: The cost of the house/flat, excluding the cost of stamp duty, registration, and other charges; Existing fair market value as per the latest valuation report.
• Quantum of loan for old property: Sale agreement price of the house/flat; Fair market value as per the latest valuation report
• Loan tenure: 30 years, including the holiday period
• Holiday period: 

               - New Houses: 18 months from the date of first disbursement of loan or completion of construction, whichever is earlier

              - Old Houses: Maximum 3 months for the purchase of a flat

If you already have a home loan and are looking to extend the financing, the top-up loan is a good option. IOB top-up loans can be used for any purpose of your choice. The home equity loan is available for anyone with a good track record of payment in the last year. IOB offers top-up loans for borrowers who have completed one-third of their loan tenure. It is also possible to transfer a bank loan from one bank to IOB.

The owner and co-owner must also be applicants for the top-up loan. It is possible to get an additional loan by inviting a guarantor to be a loan applicant. Any family member is allowed to become a guarantor. 

Loan Amount:

• Minimum: ₹50,000
• Maximum: ₹2 crores
• The loan amount is 75% of the present Forced Sale Value minus the outstanding housing loan balance

Takeover from Other Banks (With or Without Top-up):

• Minimum CIBIL score: 700
• At least 12 EMIs were paid
• One year must have passed since the loan was taken
• An equitable mortgage must be created as a security
• The borrower must have a satisfactory repayment history
• The account must not be in SMA1 or SMA2 status in the last 12 months
• The primary security of the home loan must not be extended for other loans except housing loans and top-up loans with the previous lender

Repayment:

• Loan tenure aligns with the underlying housing loan or 15 years, whichever is longer, but must be repaid before the borrower turns 70
• Borrowers can choose a shorter tenure. No new top-up will be sanctioned after closing the linked home loan

Another type of home loan from IOB offers a 20% higher loan amount than a normal housing loan. As long as you have a monthly income of Rs. 30,000, you can get this loan. The repayment period allowed is a maximum of 30 years, including the holiday period. 

• Eligibility: Salaried employees working in private companies, MNCs, PSUs, or government organisations.
• Loan Quantum: 20% higher than the standard housing loan.
• Age Criteria: Applicants must be between 21 and 45 years old, with the loan fully repaid by the time they turn 70.
• Minimum Monthly Income: Net monthly income of at least ₹30,000.
• Repayment Period: Up to 30 years, including the holiday period.
• Holiday Period: Maximum of 36 months.
• Interest Servicing: Optional during the holiday period.

If you are looking to renovate or refurnish your home, the home improvement loan is useful. This loan can be used for multiple purposes related to home renovation. The maximum loan amount sanctioned depends on the cost estimate of the actual work to be undertaken. You can avail yourself of anything from Rs. 25,000 to Rs. 25 lakh when you apply through this scheme. 

For this loan, the renovated property must be mortgaged to the bank. If that is not possible, you can also pledge another property with a market value that is twice that of the loan amount. 

Eligibility:

• Salaried Individuals: Must be confirmed in service.
• Self-Employed/Professionals: Income Tax Returns (ITR) must be filed for the last two years.
• Age Criteria: Between 21 and 60 years.

Purpose: To cover expenses for repairs, renovations, or upgrades of an existing house or flat, such as painting, building a compound wall, flooring, tiling, replacement of doors/windows, wiring, etc.

Loan Amount: Ranges from ₹25,000 to ₹25 lakhs, depending on the estimated cost of work and the applicant's repayment capacity.

Margin: 25% of the total loan amount.

Tenure: Up to 180 months.

NRIs, too, can avail of IOB home loans for the construction, purchase, renovation, or repair of residential houses. Even those holding passports from other countries can apply (except for Bangladesh and Pakistan). The immovable property must be mortgaged with the bank. You must ensure that the land or property is in your name or held jointly with your spouse or other close relative. 

There are a few conditions for the NRI home loan. The loan proceeds will not be credited to the NRE/FCNR account. You can repay the loan amount as a foreign inward remittance. It is also possible to set up a debit of the borrower's NRE/NRP/FCNR account. Any close relative of the borrower can also repay the loan. However, cash payments will not be accepted. 

Minimum Salary: ₹10,000

Quantum of Loan:

• New Property: No ceiling
• Repair & Renovation: Up to ₹25 lakhs

Rate of Interest: Linked to RLLR (latest rates available upon request).

Margin:

• Up to ₹30 lakhs: 10%
• Above ₹30 lakhs up to ₹75 lakhs: 20%
• Above ₹75 lakhs: 25%

Repayment Period:

• Purchase/Construction: Maximum 240 months (Age at exit must not exceed 60, including moratorium period)
• Repair and Renovation: Maximum 180 months.

Holiday Period:

• Purchase: 6 months
• Construction: 12 months
• Repair and Renovation: 3 months

If you are not interested in renovating the home but want to furnish your home with new home decor, you can get IOB loans to buy new kitchen equipment, room coolers, air conditioners, carpets, cupboards, and others. The loan amount is determined based on your monthly income. There are no prepayment charges for this loan. 

Loan Amount:

• Option A: Up to 5 times the gross monthly income or ₹2.00 lakh, whichever is less, if a third-party guarantee is provided.
• Option B: Up to 10 times the gross monthly income or ₹10.00 lakh, whichever is less, if collateral equal to the loan amount is provided.

Margin: Minimum margin is 25% of the total cost

Repayment: Maximum of 6 years. The combined EMI for this loan and any housing loan should not exceed 60% of the gross pay.

Security:

• Hypothecation of purchased items.
• For loans above ₹2.00 lakh to ₹5.00 lakh: Third-party guarantee required.
• Mortgage of the property being furnished.

              - If financed by IOB, extend the mortgage for this loan or mortgage another property with a value at least equal to the loan amount.

              - If financed by another bank or financial institution, provide a no-lien letter from that institution.

The crucial details are KYC forms, salary details, income slips, and property mortgage documents. You must be ready with the following documents:

• Completed application form
• ID Proof: Aadhaar card, passport, driving license, PAN card, Voter ID
• Address Proof: Utility bills, passport, Voter ID, Aadhaar card, driving license
• Income Proof for Salaried Applicants: Salary slips, bank statements
• Income Proof for Self-Employed Applicants: Sale agreement for house/flat
• Membership proof for cooperative societies
• Experience certificate for self-employed applicants
• Construction estimate or valuation report for property acquisition or a legal opinion on the property from a bank-approved lawyer or engineer

Here is a comparative analysis of the home loan interest rates provided by the top banks in India: 

Last modified on 19 July, 2024.