Indian Bank Home Loan Interest Rates
Home Loan Bank Information
Indian Bank Home Loan Interest Rates
Indian Bank was formed on 5 March 1907 and merged with the Bank of Thanjavur in 1990. The bank achieved several milestones in its journey, including an IPO (Initial Public offering) in 2007 and became 100% compliant in its Core Banking Solutions (CBS) in 2008. The year 2019 was significant for Indian Bank. The rural division of Indian Bank, Pandyan Grama Bank with Pallavan Grama Bank to become the Tamil Nadu Grama Bank. In the same year, Indian Bank merged with Allahabad Bank and began as an amalgamated bank in 2020.
Indian bank has 5809 branches in India and 3 international branches including one in Colombo and in Singapore.
Indian Bank has several loan options and several types of home loans that include the IB Home loan, the IB home loan combo, the IB home loan plus which is a kind of top up loan, the IB plot Loan, IB Home improve loan, NRI plot loans, NRI Home loans, the Ind Covid Emergency loan, the IB Home advantage loan, Loan against lease rentals and the Ind Awas Home loan under PMAY (Pradhan Mantri Awas Yojana) CLSS (Credit linked subsidy scheme).
The IB home loan is suitable for buying a new flat or home and even for buying a plot of land and constructing a home. This loan can be applied for home improvement and repairs as well. This loan is available for private or government employees drawing salaries, Self-employed professionals, business persons and pensioners.
The IB home loan plus is available for any valid reason and is a kind of top up loan and is given after existing borrowers have paid at least 12 EMI’s.
The Indian Bank Home loan Combo is a special package where the Bank offers anyo f four additional loans that can be taken with a home loan and there are rebates in the interest rates. The four other loans offered are the IB vehicle loan, the IB home improve loan, the IB clean Loan and the IB pension loan.
Indian Bank Home Loan Interest Rates
Indian Bank home loan interest rates are lower for applicants with high CIBIL scores of 800 and above. Hence it is better for applicants to close all existing loans and pay off all debts and dues that may show up on the CIBIL score before applying for an Indian Bank home loan.
There is a 0.1% rebate on interest in each category for women. It is advisable to apply for a joint loan with spouse even if the spouse is not working.
| Type of loan | Loan amount range | CIBIL Score ranges | Rate of interest for women | Rate of interest for general public | ||
|---|---|---|---|---|---|---|
| Salaried people | Non salaried | Salaried people | Non salaried | |||
| IB Home loan – floating including HL, NRI and IB home advantage | Up to Rs 75 lakhs | > 800 | 6.8 % | 6.95% | 6.9% | 7.05% |
| 751 – 800 | 6.9% | 7.05% | 7.00% | 7.15% | ||
| 701 – 750 | 7.00% | 7.15% | 7.10% | 7.25% | ||
| Up to 700 | 7.10% | 7.25% | 7.15% | 7.30% | ||
| Rs 75 lakhs and above | > 800 | 6.90% | 7.05% | 7.00% | 7.15% | |
| 751 – 800 | 7.00% | 7.15% | 7.10% | 7.25% | ||
| 701 – 750 | 7.10% | 7.25% | 7.15% | 7.30% | ||
| Up to 700 | 7.15% | 7.30% | 7.25% | 7.40% | ||
| IB Plot Loan, home loan plus, Home improvement loan | Up to Rs 75 lakhs | > 800 | 7.80% | 7.95% | 7.90% | 8.05% |
| 751 – 800 | 7.90% | 8.05% | 8.00% | 8.15% | ||
| 701 – 751 | 8.00% | 8.15% | 8.10% | 8.25% | ||
| Up to 700 | 8.05% | 8.20% | 8.15% | 8.30% | ||
| Rs 75 lakhs and above | > 800 | 7.90% | 8.05% | 8.00% | 8.15% | |
| 751 – 800 | 8.00% | 8.15% | 8.10% | 8.25% | ||
| 701 – 750 | 8.10% | 8.25% | 8.20% | 8.35% | ||
| Up to 700 | 8.20% | 8.35% | 8.25% | 8.40% | ||
| IB Home loan- CRE- Floating- Including HL NRI and IB home advantage | Up to Rs 75 lakhs | > 800 | 7.30% | 7.45% | 7.40% | 7.55% |
| 751 – 800 | 7.40% | 7.55% | 7.50% | 7.65% | ||
| 701 – 750 | 7.50% | 7.65% | 7.60% | 7.75% | ||
| Up to 700 | 7.55% | 7.70% | 7.65% | 7.80% | ||
| Rs 75 lakhs and above | > 800 | 7.40% | 7.55% | 7.50% | 7.65% | |
| 751 – 800 | 7.50% | 7.65% | 7.60% | 7.75% | ||
| 701 – 750 | 7.60% | 7.75% | 7.70% | 7.85% | ||
| Up to o700 | 7.65% | 7.80% | 7.75% | 7.9% | ||
| IB IND Awas for PMAY | Common for EWS/ LIG/ MIG I, MIG II | 6.85% | 7.00% | |||
The interest rates listed above are for loans with LTV (loan to value) up to 80%. Loans with LTV up to 90% will have 0.1% extra interest.
There are other Indian bank home loans that are Repo rate based and their interest rates have been tabulated below
| Type of loan | Category | Rate of interest |
|---|---|---|
| IB Home enrich loan | General | 7.55% |
| Salaried Women | 7.00% | |
| Non salaried women | 7.25% | |
| Ind mortgage loan | General | 10.65% |
| Women | 10.50% | |
| IB Rent encash | General | 10.40% |
| Women | 10.25% | |
| Non priority term loan for GMRA (Global master Repurchase agreement) premium | General | 7.75% |
| Women | 7.6% |
How to apply for an Indian Bank home Loan
-
- An application for an Indian Bank home loan can be made online through the Indian Bank portal, manually by a visit to the nearest Indian Bank branch or preferably the branch near the property. The third option of applying are through affiliated links such as magic bricks and wish fin.
- The applicant should apply jointly for housing loan as women are offered interest rebates by Indian Bank. The application form can be downloaded and even filled up and submitted online.
- There will, however, be a need to physically visit the bank and have a discussion with the Indian Bank officials. They will provide valuable advice and are likely to recommend changes in the type of property, the loan amount, the down payment and even the loan tenure.
- The filled application will need to be submitted with all the documents as per the checklist. Care must be taken by the applicants to ensure all documents are in order so that the loan application is not held up or rejected.
- The application and documents are scrutinised by the Indian Bank officials and the applicants will be called once the loan is approved.
- The last stage is the signing of the loan agreement with Indian bank and the loan amount will be disbursed.
FAQs
Will applicants under the IB Awas home loan linked to the PMAY scheme be eligible for lower interest rates for high CIBIL score?
Yes. PMAY will issue a home loan subsidy but the principal lender will be Indian Bank and all the other terms and conditions of eligibility will apply. People applying for the IB Awas home loan can get interest benefits by maintaining a CIBIL score above 800. There is scope of bringing down interest by up to 0.25% by bringing up the CIBIL score from 700 to 800.
Is it better to opt for the Repo rate for a home loan with Indian Bank or request them to request for the MCLR based rate of interest?
The Repo rate is the rate at which the Reserve Bank of India (RBI) lends funds to Indian banks. The MCLR (Marginal cost of Lending Rate) is the interest rate which Indian Bank sets for loan borrowers. It has been observed that banks often reduce their MCLR even though the repo rate remains unchanged over a period of time. A steady Repo rate costs the Indian bank less to process and lend money and so this benefit is passed on to loan borrowers. But Banks with good liquidity reduce MLCR rates and banks with liquidity issues may even raise the MCLR. In the case of Indian Bank, it is better to opt for the MCLR.
Will there be a reduction in the interest rate for an Indian Bank home loan in a good locality?
Indian Bank does not have any specific interest rate on the basis of location of property though some banks and NBFCs (Non-Banking Financial Company) have a range of interest rates and they offer lower rates for property in good localities and with upmarket amenities. An applicant can, however, discuss this with Indian Bank officials and request them for a lower rate of interest for property in a prime location.
Is there any interest benefit in an Indian Bank home loan if an applicant prefers to apply for a loan with lower LTV ratio and higher down payment?
Indian Bank does not offer any interest rebate incentives for a loan application with lower LTV (Loan to value) ratio with higher down payment. There is, however, a benefit to the applicant in terms of lesser loan burden. The applicant can raise this point during the discussion with Indian Bank officials during the loan application process and request for a rebate in interest on the basis of lower loan to value ratio.
Is there any rebate on interest for an IB home improvement loan taken as a combo along with a vehicle loan and the main home loan?
Indian Bank will offer a 0.50% reduction in interest on the vehicle loan taken as a combo with the main home loan. There is, however, no interest rebate from Indian Bank on the Home improvement loan. Both the vehicle and the home improvement loan in the combo package will incur 50% of the normal processing charges.