Indian Bank Home Loan
Home Loan Bank Information
Table of Contents
- फ़ीचर ऑफ़ इंडियन बैंक होम लोन
- Indian Bank Home Loan Interest Rates
- Eligibility Criteria for Indian Bank Home Loan
- Indian Bank Home Loan Schemes
- Indian Bank Home Loan for NRI or PIO
- How to Apply for Indian Bank Home Loan
- Document Checklist for Indian Bank Home Loan
Introduction
Indian Bank home loans are utilised by many people in India, which uses competitive interest rates and very good repayment options to attract every kind of customer base be may it the salaried class, the self-employed class or the NRIs looking to invest in India by purchasing a property. We also suggest you consider Indian Bank Home loans while buying a house.
These home loans can be used to buy a property/flat/house or to buy a plot of land where one can construct anything they want to.
Indian bank enables you to take over home loans which you have taken from any other bank and transfer them under their record for you to enjoy low-interest rate and good repayment scheme.
They provide you with options of paying the rate of interest in either floating or fixed rate.
Indian Bank finances NRIs and PIO to let them buy a house/property in India with a great rate of interests and quick accessibility on the internet which enables them to track their application with ease and at their convenience.
फ़ीचर ऑफ़ इंडियन बैंक होम लोन
- Home loans from Indian bank can be taken for purposes of purchasing a property/flat/house or to purchase a plot of land. If someone wants to renovate or refurbish the old house, they can also avail a home loan from Indian bank.
- Age eligibility to apply for Indian bank home loan is between 18-70 years.
- They can grant you a loan amount of up to Rs. 500 lakhs from a minimum amount of Rs. 15 Lakhs for your application of home loan with a processing fee of only 0.230% of the loan amount not exceeding Rs. 20470
- They grant you maximum 30 years of tenure to repay the home loan taken for a new house/property (18 months of holiday period allowed for 30 years of tenure). They also offer 120 Months for the repayment of the amount taken for the renovation of the house.
- No prepayment charges are levied by the Indian bank.
Indian Bank Home Loan Interest Rates
They provide customers with affordable and market competitive rates of interest. A slightly lesser rate of interest is given for female applicants to encourage them to engage more in buying a property/house.
- For salaried person
| Loan Amount granted | Indian Bank Home Loan Interest Rate | Special interest rates for women |
|---|---|---|
| Up to Rs. 30 Lakh | 8.75% | 8.70% |
| Rs. 30 Lakh – Rs. 75 Lakh | 8.90% | 8.75% |
| Above Rs. 75 Lakh | 8.95% | 8.90% |
- For self-employed person
| Loan Amount granted | Indian Bank Home Loan Interest Rate | Special interest rates for women |
|---|---|---|
| Up to Rs. 30 Lakh | 8.80% | 8.75% |
| Rs. 30 Lakh – Rs. 75 Lakh | 8.90% | 8.80% |
| Above Rs. 75 Lakh | 9.00% | 9.00% |
Indian bank allows you to pay the loan amount with a maximum tenure of 30 years for home loans secured against buying a new house/property or construction of a new house on a plot.
They allow a maximum of 18 months of the holiday period for 30 years of repayment duration.
In cases of repayment for home loan taken to renovate or refurbish your old house, the maximum period of 120 months is given.
Eligibility Criteria for Indian Bank Home Loan
- Source of Income
- Salaried class
- Self-employed class
- Businessman
- Hindu Undivided family
- Pensioners
- Age group
A person aged 18 years up to 70 years.
Following is a table which represents the eligibility required for Indian Bank Home loan
| Eligibility criteria entities | Indian bank required parameters |
|---|---|
| Age required for eligibility | 18 – 60 years |
| The loan Amount one can apply for | Rs. 15 Lakh to Rs. 5 Cr |
| Maximum loan granted against the property value | Up to 90% |
| Maximum EMI calculated per month’s income | Up to 65% |
Basic eligibility criteria for salaried applicants
Age: 18 to 70 years
Maximum Loan Amount: Rs 500 lakhs
Lowest EMI per lakh: Rs.884 per lakh
Interest: 8.75% – 8.95% per annum.
Basic eligibility for self-employed applicants
Age: From 18 to 70 years
Maximum Loan Amount: Rs. 500 lakhs
Lowest EMI per lakh: Rs.884
Interest: 8.80% – 9.00% per annum.
Eligibility Based on Age
While applying for a home loan, the age of the applicant holds great value in determining the amount of loan that can be granted to him/her. This factor, coupled with the current income of the applicant helps the bank to calculate exactly how much EMI he/she can pay. Therefore the bank decides the total amount of loan that has to be given to the customer. It helps the bank as well as the customer to ensure that the repayment scheme that they adopt is feasible and that the chances of any complications regarding any future repayment are cut down to zero.
The minimum age required to avail home loans from Indian bank is 18 years and can apply for the same till the age of 50. A person who has just joined the workforce and has relatively more years to offer as an employee will get more principal amount of loan as well as more income-friendly EMIs as compared to someone approaching the age of 50.
The following table represents the loan repayment tenure allowed with respect to the age of the applicant.
| Applicant’s current age | Tenure allowed for salaried person’s repayment | Tenure allowed for self-employed person’s repayment |
|---|---|---|
| 18 वर्ष | 30 वर्ष | 30 वर्ष |
| 25 वर्ष | 20 वर्ष | 20 वर्ष |
| 30 वर्ष | 20 वर्ष | 20 वर्ष |
| 35 वर्ष | 20 वर्ष | 20 वर्ष |
| 40 वर्ष | 20 वर्ष | 20 वर्ष |
| 45 वर्ष | 15 वर्ष | 15 वर्ष |
| 50 वर्ष | 10 वर्ष | 10 वर्ष |
Eligibility Based on Income
This eligibility is concerned with the applicant’s income per month and determines the amount of loan he/she can procure from the bank with age playing a good supporting role in this decision. In principle, more income will fetch you more loan amount as your ability to pay the EMIs is primarily dependent on this factor plus the age of the applicant.
The bank uses net income (after all the deductions) of the applicant as the means to determine how much loan can be made available to the subject applicant.
To get a better understanding of how the income and age of the applicant, decide the loan amount to be given. Let’s assume that there are 3 people each aged 25, wants to buy a house which has the same base price of Rs. 40 lakhs and those 3 people do have salaries of Rs. 25,000, Rs. 50,000 & Rs. 75,000 respectively. Now, the first person whose salary is Rs 25,000 will get Rs. 25.93 Lakh to Rs. 36.78 Lakh. Similarly, the one who earns Rs. 75,000 will get Rs. 51.86 Lakh to Rs. 73.55 Lakh as the loan amount.
Nature of employment: The bank checks for your employment to ascertain what is your source of income, is it a salary based or a self-employed one. Also, it looks at the experience you have at your company, but luckily for Indian bank Home loans, it is not necessary to have experience under your belt like other banks require you to do so.
Eligibility Based on Value of Property
As the industry norms dictate the property market, Indian bank will not pay the whole amount of your purchased house but will instead pay LTV percentage amount against the total property/flat value.
Each home loan application is reviewed by the bank to see what is the total property value mentioned in the submitted documents, and then as per the LTV percentage assigned for the given property value, the loan amount is disbursed.
A person who puts an offer for a house of Rs. 30 lakhs or less will get an LTV amount of 90% of the property’s total value as the loan amount from the bank. Similarly, A house worth between Rs. 30 lakhs and Rs. 75 lakhs will get LTV amount of 80% against the total value of the subject property. Above Rs. 75 lakhs, the applicant will get an LTV amount of 75% against the property’s total value.
Two factors improving your eligibility
- Adding a co-applicant in the agreement for your home loan will surely give the banks assurance for the duly required repayments. A good score on his/her CIBIL report ensures a hassle-free loan acquisition from the bank.
- All the property papers should be produced before the bank for the validity of that property as it directly improves your eligibility to acquire Indian bank’s Home loans without any inconveniences.
Eligibility Based on CIBIL Score
As mentioned before briefly, a CIBIL report is maintained by the authorities who track your past’s spending behaviour and also the payment of previous EMIs & credit card bills. The bank needs to determine the innate nature of your financial activities. Each of the previous transaction is noted down by the authorities at CIBIL to ensure other financial institutions to have a comprehensive report about a customer’s financial inclinations. These reports tell a lot about your ability to pay EMIs for the home loan on time; this information is vital for the Indian bank to determine your application and whether to approve it or not. A higher CIBIL score puts your application in the front position to get approved. The minimum CIBIL rating one can have is 650 points.
Indian Bank Home Loan Schemes
Indian Bank understands the needs of a customer and has thus compiled good options for home loan schemes under their banner. They can pay heed to the customer’s demands and also their financial capabilities, by which they can devise comprehensive home loan packages for them which has low-interest rates and easy repayment scheme which includes holiday period for the customer.
The eligibility of the applicant determines what amount of loan and for how much duration of repayment he/she is eligible for. This eligibility is calculated by means of looking at the applicant’s income, age, CIBIL score and co-applicants signature. If the eligibility factors like CIBIL score is not favourable, the Indian bank will impose a heavier interest rate upon his/her loan amount.
Indian Bank puts an interest rate of 8.75% to 9.70% for its customers with a special discounted rate of interest for women applicants.
The following is a table representing Interest rates for various Indian bank Home loan schemes.
| Indian Bank Home Loan Schemes | Interest Rate (Per annum.) |
|---|---|
| Indian Bank Home loans | 8.75% onwards |
| Indian Bank Plot loan (NRIs & Resident) | 9.75% onwards |
| Indian Bank Home Loan improvement | 8.75% onwards |
| Indian Bank Home Loan for NRIs | 8.75% onwards |
Main home loan by the bank
People want to move out to new cities where they get employment opportunities by which they can uplift the status of themselves and their families. Most often these same people will opt to buy a house instead of renting it for a shorter period, as they see it fit for themselves to invest their money by purchasing a house as they see themselves living there with their families for a long period.
Purchasing a house in a city or a metropolitan city for that matter is not an easy task due to the property market is raising its value day by day. Opting for a bank for financing the purchase of a house is the safest option out there.
Indian Bank presents you Home loans which serve your needs and aspirations of buying a house even if you can’t pay the whole amount at once to the seller; you can pay the seller the amount through the financing of home loans provided by Indian banks. After that, you just need to repay the loan amount to the bank in easy monthly EMIs throughout the tenure allotted by the bank.
Process of applying is pretty simple and quick as their assistance is available to guide you, competitive interest rates and easy repayment options provided by them makes it one of the finest home loan options for you to consider while buying a house.
Indian bank Home loans finances needs of so many people irrespective of their nature of employment, income or other social entities.
Features of Indian Bank home loan
- Indian bank provides attractive home loans with affordable interest rates and flexible repayment EMIs options with a vacation period as an additional feature of it.
- They provide you amount up to Rs. 500 lakhs as a home loan.
- The maximum tenure allowed for a customer to repay his/her loan is 30 years.
- They provide you with quick offline as well as online guidance to make your application ready for approval by the bank’s administration, they are known for great customer assistance for Home loans.
- An applicant must meet the criteria provided by the bank such as income, type of employment, age and decent CIBIL report to become eligible for taking home loans from them. Even NRIs and PIO are eligible to enrol in this scheme.
- They provide you home loans to buy a new property/flat/plot or to construct a house on a plot.
- Indian bank home loans are also used for renovating or refurbishing your old house which leads to value addition of that old house which can be used in the future for a better price for the house while selling it. Up to Rs. 10 Lakhs is allowed for this specific purpose by Indian bank home loans.
- Refinance an existing home loan from some other bank is also possible by applying for a home loan at Indian bank with approvals from authorities.
- Indian Bank provides zero Prepayment fees against prepayment of the loan amount before the expiration of loan repayment tenure.
- They provide the lowest processing fee per application, so it is assuring for the applicant.
Housing loan for financing a plot purchase
India is leading the race of economic growth; it is an uplifting record number of people out of poverty every year. As the poor class is transforming themselves and contributing heavily towards this surge in growth, the middle class and the upper class is also blooming in prosperity, with all the wealth creation happening people will inevitably tend to invest their hard-earned money into the property market. This investment in the property market has been a key aspect of the Indian middle class and upper class for years now, and Banking sector has a lot of stake in this market with these classes as well because they finance these deals regarding plot’s buying and selling.
India Bank provides a specific home loan for buying plots across India; this scheme is known as Indian Bank plot loan. It provides the customer with attractive offers regarding affordable interest rates and repayment options, which suits the customer’s EMI paying capacities.
Features of Indian Bank Plot loan
- This home loan is available to those who wish to purchase a plot in India to construct or erect a house/building of their choice.
- Eligibility criteria for applying for this scheme are pretty simple as anyone from age 18 to 60 is eligible in this scheme from Indian bank.
- The site should be located such that it must be cleared by the authorities in this matter.
- The maximum tenure allowed is 180 months
- The construction on the plot has to start within 2 years after the date of sanctioning of the loan.
- The processing fee levied by the bank for this application is 1.173% of the total loan amount applied for.
- The margin for the bank is set at 25% of the total cost of land.
Amount of loan can be taken under this loan scheme
Indian bank’s plot loan enables an applicant to enrol for a home loan based package which lets him/her buy a piece of land on which he/she can construct any kind of structure they wish so.
As the bank finances the applicant for the purchase of a plot, it is imperative to recognise how much is the bank able to finance the purchasing of land in different areas of the country.
Different areas include – Rural area, semi-urban area, urban area & metro city. According to which of these areas, the plot becomes a subject to, the bank will accordingly sanction a specific pre-determined amount of loan to the applicant. Therefore the following details about what amount the bank is ready to finance for the purchase of a plot must be thoroughly read by the applicant.
The amount of loan given by Indian Bank according to the areas concerned
- Maximum amount up to Rs. 50 lakhs or 30 times of gross monthly income buying or plots in rural areas of India, among them whichever is the highest will be considered for the loan amount
- Maximum amount up to Rs. 100 lakhs or 30 times of gross monthly income for buying of plots in semi-urban areas of India, among them whichever is the highest will be considered for the loan amount
- Maximum amount up to Rs. 200 lakhs or 30 times of gross monthly income for buying of plots in urban areas of India, among them whichever is the highest will be considered for the loan amount.
- Maximum amount up to 300 lakhs or 30 times of gross monthly income for buying of plots in metro cities of India, among them whichever is the highest will be considered for the loan amount.
Indian Bank Home Loan for NRI or PIO
NRIs and PIO are also eligible for taking home loans from Indian bank. Indian Bank Home Loan for NRIs is a specific scheme designed by the bank to target the customer base of NRIs and PIO living outside of India. Even they want to establish a connection with their country and what’s better than to purchase a piece of land or property to cement this connection on a more solid level. To fulfil these aspirations of NRIs and PIO, financing the purchase of a house/property/land is a good option for them as it is difficult to oversee the deal and other legalities regarding the negotiations sitting overseas.
Individuals who are Non-Resident Indian (NRI), Person of Indian Origin (PIO), and Overseas Citizen of India (OCI) are eligible to buy a property/flat/plot of land according to laws in India.
There is a big market of NRIs and PIO seeking housing finance for the banking industry to capture. Many banks offer a good option of financing to this market and has a good share of the market, Indian bank also stands firm in this field of financing housing loans to NRIs and PIO as they provide one of the finest options to procure home loans for their dream house or project in India which is difficult otherwise.
While applying for this scheme, you must rope in a co-applicant on this loan who is also an Indian citizen with a good CIBIL score. This ensures a hassle-free repayment structuring for the bank in regards to your application.
Securing a home loan from the bank first is advised before purchasing the desired property/flat/plot.
Features of Home loans for NRIs
- An NRI from the minimum age of 18 years to a maximum age of 50 years is eligible for a home loan.
- NRIs working on contractual basis should have at least 3 years of contact left while applying for Indian bank Home loan.
- Maximum loan amount given under this scheme to the NRI applicant is either 36 times of gross monthly income earned or 60 times of net monthly income.
- The maximum amount for a loan towards repair and renovation is Rs. 5 lakhs.
- The processing fee is calculated around 0.228% on loan amount.
- Prepayment of the loan amount is accessible with zero prepayment charges to the NRIs.
Home Loan Eligibility for NRI or PIO
India is home to 1.3 billion people, having such a large population doesn’t also mean that there are more people of Indian origin living outside of India for various reasons.
People migrate to other countries for financial prosperity and elevating their social status as they get tremendous opportunities to earn a good wage there. People work there with full dedication, and they become a part of that country’s economy and culture. As these people climb the ladder of success on the foreign land, they yearn for a home in their native country of India, which ties an emotional thread between them and their country of origin.
Therefore, the best way for them to establish this connection is by buying a house in India, which is permissible according to the Indian laws which govern such matters. Any NRI or a PIO can purchase a house/plot/property in India if he fulfils the criteria set by the government and of the bank.
According to the reports of MEA of India, approximately 30 million people are living outside of India who are recognised as NRIs or PIOs. These individuals are of different ancestry, ethnicity and national citizenship. Of these 30 million, the US has 15 million of this diaspora on its own as it provides the greatest opportunities to get successful.
After 182 days of an individual living outside of India, that individual can claim to be an NRI. This is according to the Indian laws prescribed for NRI categorisation.
Similarly, People who were once Indian through their passport but now have a different passport in their wallet can claim the status of Person of Indian origin through which he/she can also buy a property/plot/flat in India. This status is also viable for those whose grandparents, parents and great grandparents who were once residents of India; therefore they also fall under the category of Person of Indian origin.
So many individuals from these 2 categories are willing to buy a property/land/flat in India through which they establish a sense of affection for their motherland. To accomplish this task, they often turn to Bank institutions for home loans from India for NRIs or PIO. This is the easiest way for them to purchase a home in India.
For the NRIs Indian Bank provides home loans to finance for a dream house in India; it also lets the NRI buy a plot in India on which he can construct a house of his own choice. The process is pretty simple and easy to follow, having assistance for th NRI to enroll in this scheme 24*7.
To buy a house in India while sitting overseas is a bit difficult job on paper, as Indian property laws make it difficult to buy property easily. Indian bank’s home loans for NRIs provide you with the option of adding a co-applicant in your application for the home loan which enables the bank to use the co-applicant as the main borrower of the loan, this is possible as you can assign the co-applicant (mandatory) the power of attorney by which he/she will take decisions on your behalf letting the purchasing of the property/land/flat become easier.
By such measures, the NRI or PIO doesn’t even have to visit the site of the subject even once, all that is to be known by the applicant can be known over the comprehensive web portal of Indian Bank which lets you track the status of your application online at your convenience.
Who is exempted from this loan?
An individual from any of these countries viz. Pakistan, Afghanistan, Bangladesh, China, Iran, Bhutan, Sri Lanka and Nepal. They are exempt from applying for this scheme.
Who are eligible for this loan scheme?
- Non-Resident Indians (NRIs) carrying an authorised Indian Passport ;
- Persons of Indian Origin (PIOs) carrying a Foreign Passport with a steady income.
| Scheme applicable to: | NRIs and PIOs |
|---|---|
| Nationality: | Indians |
| Work experience in total: | Minimum 2 years in a particular company |
| Age requirement for the scheme: | 18-60 years of age |
| Loan tenure for repayment: | Up to 30 years |
| Loan amount to be granted: | Varies case by case |
| Interest rates applicable: |
8.75% onwards(for the Home loan) 9.75% onwards(for plot loan) |
| Processing fee levied per application: | 0.228% |
| Prepayment fee levied: | Nil |
Once your application ticks all the boxes mentioned above, it can proceed.
Documents required by the bank to validate your application
A list of documents applicant must submit to Indian Bank
- The application form with 3 passport size photographs enclosed with all relevant details.
- Some photocopies of your ID card.
- Photocopy of your self-attested PAN card.
- Photocopy of Indian address.
- Relative’s contact information to be supplemented in the application.
- Photocopy of your overseas address proof.
- Your most recent CIBIL report’s photocopy.
- Every document related to the subject property.
It is crucial to first secure the home loan for such endeavours, as it becomes difficult to get a loan after you have negotiated a deal with the seller.
So it is highly recommended that NRI applicants must first sort out the approval from the bank and then purchase the subject property.
Giving the name of a reliable co-applicant is highly advised as it holds great weight in the application.
These are the final documents the applicant must diligently produce before the bank.
Identify the proof required by them:
- A valid passport
- A valid driving license
- A voter ID card
Any of the following address proofs:
- A voter ID
- A valid driving license
- A valid passport
Income proof:
- Work Permit papers of the applicant.
- Employer Company’s address proof plus the contact details of the corporate HR.
- Applicant’s employment contract.
- Photocopy of your ID card given by your present employer, duly attested.
- Details of your previous employment records.
- Applicant’s recent salary slip.
- IT Return file (past 2 years).
How to Apply for Indian Bank Home Loan
To buy a house/property in today’s property market is a difficult job without the financing provided by any banking institutions. The easiest way to fulfil your dream of buying a house or a plot of land on which you would yourself commission a house to be built is applying for a home loan given by the banking sector.
Everyone wants an affordable home loan in which the rate of interest is as low as it gets and also gives you an ample amount of flexibility while repaying your loan to the bank.
Indian bank Home loans check all these conditions as they allow you to buy a house/property or land through the means of a home loan without taxing much on your monthly income as the EMIs are flexible, and interest rates are as low as they get.
Applying for Indian bank Home loans is easy; just follow the given steps.
Check your Eligibility
Following are the eligibility requirements every applicant must follow:
- Age group
- Net income (after deductions)
- Information of the co-applicants in your application.
- Credit history from trusted sources
Apply for the Loan
One can apply for a home loan at their nearest branch of Indian bank, or you can fill their online application form at your convenience. It is as simple as that.
After duly filling the form, the applicant must ensure that all the documents that are required by the bank are diligently submitted to them.
Your application will be reviewed by the bank authorities for its credibility through various background checks performed by their sources. Approval will be quick if the application fulfils all the requirements prescribed by the bank, having a good CIBIL score also boosts this prospect.
Document Checklist for Indian Bank Home Loan
| An Advance cheque for processing formalities | A cheque which is to validate the details of your bank. |
|---|---|
| Duly filled & attested application form | with 3 passport size photograph |
| Source of income proof | Consisting of salary slips, bank statements going back 1 year, and Form 16 |
| Investment portfolio’s copy | Mutual funds and other bonds documents |
| Current employment letter | A letter from HR |
| Authorised Identity proof with photo | Passport-sized photos, Voter ID, PAN card |
| Subject property’s documents | Enclosed with sale deed, Katha, Transfer of Ownership documents attested |
| Verified address proof | Sale Deed copy or Rental Agreement |
This completes your application of applying for Indian Bank Home loans, Congratulations on your application for the home loan.