Indian Overseas Bank Home Loan

Table of Contents

• Indian Overseas Bank Home Loan Interest Rates
• Eligibility Criteria for IOB Home loan
• Indian Overseas Bank Home Loan Schemes
• IOB Home Loan for NRI or PIO
• How to Apply for IOB Home Loan
• Document Checklist for IOB Home Loan

Introduction

Indian Overseas Bank has come a long way since their founding in 1937 in Tamilnadu with stress on Foreign Exchange Business. One of the fourteen banks to be nationalized in 1969, they have aligned with the objectives of public sector banks with a focus on social banking. Indian Overseas Bank, being one of the leading public sector banks in the country, offers a host of home loan solutions as an important segment of their retail business. .

Recognizing the fact the cost of owning a house or flat is prohibitively expensive, Indian Overseas Bank has designed a bouquet of home loan plans to cater to all sections of the society.  Matching personal needs and preferences is the focus of their home loan schemes. In tune with the trend, they claim to provide best of terms and competitive interest rates to ensure satisfaction of their clientele.

Indian Overseas Bank Home Loan Interest Rates

Interest Rates are as of 2019

For any credit facility, more so for the housing loan, a great concern for the borrower is the cost of capital. Thus it makes sense to first ascertain the kind of interest rates the bank offers and also the other underlying charges that impact the overall cost of capital.

Indian Overseas Bank offers Floating rate of interest for home loans linked to benchmark MCLR at 8.65 effective from 10th July, 2019.

On top of the interest you have to factor in the upfront processing charges as they impact the cost of capital.

Eligibility Criteria for IOB Home loan

The diverse schemes are suggestive of different eligibility norms, which need to be elaborated:

Indian Overseas Bank Home Loan Schemes

Now that you have a clear picture of the cost of capital as a whole up front, you need to learn about all the home loan schemes the bank offers. As for the charges, there are host of others that may be levied depending upon the evolving situation. Now take a look at all the schemes in their bouquet of home loans and also recapitulate the rate of interest applicable in each of them.

Types of Indian Overseas Bank Home Loan

Indian Overseas Bank portfolio of home loans is full of diversity, especially in its form. All the home loans are Term credit in nature barring one which is in the form of a cash credit with reducible balance linked with appropriate drawing power.

If you have to name any single home loan as the main, it has to be their Subha Gruha, which is the basis of all other loans. It is best to take a brief glimpse at all of them.

Subha Gruha Housing Loan: It is an all purpose loan that allows the eligible borrowers to build new residence, buy ready home whether new or old, or even renovate your accommodation.

Subha Gruha Next Gen Housing Loan: It is a special type of loan where the borrowers are restricted to employees of reputed organizations or Government servants. As a bonus they can increase their eligible loan amount by 20%.

Subha Gruha Pre Approved Home Loan: It is a unique facility where the borrower is yet to finalize the deal with a builder. Even then a provisional approval has been accorded, which is valid for 3 months.

Subha Gruha Housing Loan   CC: Since the facility allows parking of idle funds, the actual outgo of the interest will be lower than the normal term loan.

Subha Gruha Home Improvement  Loan: This loan gives a wide choice to the borrowers. You can add, modify, repair, renovate, restore and beautify the house as per your choice.

Subha Gruha Top Up  Loan: This loan provides for additional funds to the existing home loan borrower, but only if you have completed one third of your repayment tenure.

IOB Home Loan for NRI or PIO

The NRI and PIOs have been given adequate attention by Indian Overseas Bank and have a home loan plan for them. It is all  encompassing alike the home loans offered to the resident Indians.

However, an NRI has to conform to the law of the land and they are required to fulfill the norms set by the RBI and the regulations framed under FERA. Still they are allowed a wide berth being able to build /buy a house / flat or repair and renovate their existing house.

Housing Loan for High-net-worth Individuals

Like all lenders, Indian Overseas Bank values their high-net-worth-individuals. They are perceived in the common parlance to possess huge liquid assets as a surplus over their liabilities. They are the prospective borrowers who can propose high costing projects. Due to their high credit worthiness, they do not have to face the possibility of default in the service of the loan.

However, Indian Overseas Bank does not provide any Premium Services.

Loan amount limits under this Home Loan Scheme

The features in various Indian Overseas Bank home loans permit the quantum limited to 75% to 90% of the proposal. The upper limit has not been specified for reasons of flexibility.

Indian Overseas Bank Home Loan for NRI

Before dwelling on the various features of the home loan for the NRI and the PIO, it is prudent to familiarize with the two terms.

NRI: It is an acronym for Non Resident Indian who is an Indian citizen holding a valid passport. Yet he is residing abroad for an uncertain period for reasons of employment, business or any other compulsion.

PIO: It is an acronym for Persons of Indian Origin who holds a foreign passport of another country. The countries barred are Pakistan, Bangladesh, Sri Lanka, Nepal, Afghanistan, China, Iran  or Bhutan.

The individual or his ancestor must have been an Indian citizen in the past.

As per the rules of RBI, a prospective borrower is entitled to own property or residence in the country both new and old, but cannot purchase farm land.

Most NRIs see the ownership of residence here as an investment opportunity and a backup for retired life. The handsome return accrued out of residential properties is reason enough for them to harbor their funds in these schemes.

A glimpse of the salient features of the loan reveals:

In addition there is also a home loan provision for close relatives of NRI. Let us have a look at its salient features.

• The loan is granted on the guarantee of the NRI.
• The applicant should be resident Indian.
• The minimum salary of the NRI should be equivalent Rs.15000.
• Income of the applicant can be considered for employees of reputed concerns and government offices.
• The NRI status should be for a period of minimum of 3 years.
• Property should be registered in the name of the resident.
• The amount of loan shall be:
  • 20 times of the gross salary
  • Maximum Rs.20L for construction or  acquisition.
  • Maximum Rs. 3L for renovation subject  to 25% margin.
• Repayment:
  • 15 years for construction and acquisition
  • 5 years for renovation

How to Apply for IOB Home Loan

The process of application for home loan with IOB needs the download of the form from their portal or collection from the nearest branch. Once the application is submitted to them, they begin the process of evaluation of the proposal. Other processes are vetting deeds, other legal documents and checking up your credit score.

On satisfaction the loan is sanctioned and the process of disbursal commences in alignment with their policies and the terms of the loan chosen.

Housing.com is eminently suited to be your partner in landing an ideal home loan solution matching all your requirements.

Document Checklist for IOB Home Loan