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Home Loan

Indian Bank was established in India on 15th August, 1907 as part of the Swadeshi Movement. It is one of the oldest and most reputed banks in India as of today. It has a host of banking and financial services keeping the consumer in mind. Out of the many categories like deposits, loans, credit cards etc, home loans are the most popular ones. The following are the home loan products offered by Indian Bank.


1. IB Home Loan


Indian Bank provides home loan to customers to accomplish their dream of owning a house. One can apply for Indian Bank Home Loans for a range of purposes such as;
 

  • To purchase / construct a new house / flat.
  • To purchase house site and construction of house thereon.
  • To purchase an existing house / flat
  • To extend an existing house/ additional construction
  • To repair / renovate an existing house / flat
  • To take over Home Loans from other Banks / Housing Finance Institutions approved by National Housing Bank for Housing Finance. 
  • For reimbursement of cost incurred within a period of 6 months for purchase/construction of house/flat

IB Home Loan Eligibility & Loan Amount
 

  • Minimum age for applying for an individual is 18 years and maximum exit age is 60 years.
  • An applicant can avail a loan amount of 36 times of Gross Monthly Income or 60 times of Net Monthly Income whichever is higher.
  • For repair or renovation, the maximum amount for loan is Rs. 5 lakhs.
  • The repayment of loans for purchase/construction of house/flat, the tenure is 20 years (including holiday period).
  • Maximum repayment period for Repairs and Renovation: 120 months
  • Maximum Holiday Period of 18 months is allowed for home loans for the purpose of construction of House/Flat

Margin & Processing Fee
 

  • Margin for loans:
  1. Up to Rs. 20 lakhs : 10%
  2. above Rs. 20 lakhs up to Rs.75 lakhs : 20%
  3. above Rs.75 lakhs: 25%
  4. For repairs or renovation: 30%
  • Processing fee is at a rate of 0.229% on loan amount with a maximum of Rs.20381/-

2. IB Home Loan Plus


Eligibility & Loan Amount
 

This loan has a top up loan facility is available for an existing customer who has successfully paid more than 36 EMIs. Apart from this, customers who have 40% gross take home salary post deduction of the anticipated EMI are eligible for this facility. The loan amount is a minimum of Rs. 1 lakh and maximum of Rs. 10.00 lakhs.


Margin & Processing Fee
 

  • LTV (Loan to Value)Ratio of 90% or 80% as the case may be to be maintained for home loan outstanding and 30% margin on the residual value of the House Property to be maintained for the top up loan.
  • Margin to be 30% on the residual value of the House Property to be maintained for the top up loan.
  • Loan processing fee is charged at the rate of 1.173 % on the total loan amount.
  • Revaluation of the market value of property and the residual life are assessed before the processing of the Indian Bank Home loan. The lingering life of the house /flat should be more than 10 years in the assessment.
  • Maximum allowed loan tenure is 120 months.
  • Nil prepayment charges on the Indian Bank Home Loan.

3. Indian Bank Home Improvement Loans


Eligibility & Loan Amount
 

As the name itself suggest, this Indian Bank Home Loan is intended for the improvising/renovation of the house/flat. The purpose could include  purchase of household furniture, kitchen racks, cupboards, TV sets, Fridge, Computers, Wall paper provisions, lighting, interior decorations, Air-Conditioners, Kitchen Chimney, modern gadgets for kitchen / modular kitchen & piped gas supply/cost of digging of bore well with suitable water lifting devices like jet pump set, compressor, solar system and submersible pump set. This facility is available for existing customer who is availing Indian Bank Home Loan. The loan amount is calculated as 30 times the monthly net take home salary of the individuals. For cases wherein spouse is inducted as a co-applicant in the Indian Bank Home Loan, the salary shall be summed up for home loan eligibility provided he/she is government employee or working with a Public Sector organization / reputed private sector. Take home Income should be more than 40% of gross income, with a minimum of Rs.6000/- as net monthly income, after recovery of proposed EMI.


Margin & Processing Fee
 

  • Margin rate in this loan shall be calculated at 15% of the consolidated expense incurred.
  • Processing fee is charged at the rate of 1.16 % on the total loan amount.
  • The maximum tenure is 48 months for purchase of any electronic appliance such as TV, computer etc and for rest other expenses the maximum loan tenure could be 60 months.

Security
 

Equitable Mortgage of Property purchased / constructed out of loan proceeds. Registration of the equitable mortgage is mandatory for states where the provision of the same implies. The cost towards registration shall be borne by the customers. Customers should ensure the property they have proposed to buy should be free from any litigation or impediment. The ownership structure should be clear and no previous loan has been obtained on the same property from any lender.  The construction should be insured up to the full market value under general insurance for any untoward event such as fire, flood, cyclone, Typhoon, Lightning, explosion, riot, Earthquake risks etc.


4. Indian Bank Plot Loan


Eligibility & Loan Amount
 

This loan is wished-for those who want to purchase a plot of land and construct their house on it. The minimum age to avail this loan is 18 years and the maximum age at the time of exit of loan / maturity should be 60 years. The house site should be located in layout which is approved by Competent Authority. Loan amount has been categorized as per the location where the same is situated;
 

  • For Rural areas: maximum up to 50 lakhs or 30 times of gross monthly income whichever is higher
  • For Semi Urban areas: maximum up to 100 lakhs or 30 times of gross monthly income whichever is higher
  • For Urban Areas: maximum up to 200 lakhs or 30 times of gross monthly income whichever is higher
  • For Metro Cities: maximum up to 300 lakhs or 30 times of gross monthly income whichever is higher

Margin & Processing Fee
 

  • Margin is set at 25% of the cost of land.
  • The maximum tenure allowed is 180 months with no holiday period and the construction of house has to instigate within 2 years post sanction of loan.
  • The processing fee charged at the rate of 1.173% on the loan amount.

Security


Equitable Mortgage of Property purchased / constructed out of loan proceeds. Registration of the equitable mortgage is mandatory for states where the provision of the same implies. The cost towards registration shall be borne by the customers. Customers should ensure the property they have proposed to buy should be free from any litigation or impediment. The ownership structure should be clear and no previous loan has been obtained on the same property from any lender.  The construction should be insured up to the full market value under general insurance for any untoward event such as fire, flood, cyclone, Typhoon, Lightning, explosion, riot, Earthquake risks etc.


5. IB Home Loan Combo
 

Eligibility & Loan Amount
 

An existing customer, who has availed home loan from Indian bank and has a proven track record of timely EMI payments for more 3 years, can further strengthen their relationship with the bank by coalescing for other loans offered by Indian Bank. Not only shall this customer have the advantage of concessional rate of interest and other value added services. An existing customer may combine another loan product such as IB Vehicle Loan, IB Clean Loan (Personal Loan to salaried employee), and IB Pension Loan or IB Home Improve loan under same umbrella. Concession of 0.50% from the applicable Card Rate for the new loan applied for except for IB home Improve loan.

Margin & Processing Fee
 

  • Maintained security margin of at least 15% for purchase of House / plot / construction of house.
  • The sanction of new loan shall depend on the repayment capacity of the customer with revised EMI and fulfillment of other credit conditions.

6. Indian Bank NRI Home Loan


Eligibility & Loan Amount
 

Indian Bank offers home loan product to its NRI/PIO customers to For purchase or construction of a house / flat / repair / renovate or alter an existing house / flat. The home loan offers the following key features
 

  • Maximum age for loan application is 50 years and the time of maturity should be 60 years
  • Any NRIs, who are working on contractual basis, should have at least 3 year of contact left at the time of home loan application.
  • Maximum loan amount sanction under this product is either 36 times of Gross Monthly Income or 60 times of Net Monthly Income whichever is higher. 
  • Take home Income should be more than 40% of gross income after deduction of EMI for the proposed loan, apart from other deductions
  • Maximum amount for loan towards repair and renovation is Rs. 5 lakhs

Margin & Processing Fee
 

  • Margin for loans:
  1. Up to Rs. 20 lakhs : 10%
  2. above Rs. 20 lakhs up to Rs.75 lakhs : 20%
  3. above Rs.75 lakhs: 25%
  4. For repairs or renovation: 30%
  • Processing fee is at a rate of 0.228% on loan amount with a maximum of Rs. 20292/-

Security


Equitable Mortgage of Property purchased / constructed out of loan proceeds. Registration of the equitable mortgage is mandatory for states where the provision of the same implies. The cost towards registration shall be borne by the customers. Customers should ensure the property they have proposed to buy should be free from any litigation or impediment. The ownership structure should be clear and no previous loan has been obtained on the same property from any lender. The layout of the house site should have been approved by the appropriate authorities like CMDA, BDA, DDA, Town Planning Authorities etc. The construction should be insured up to the full market value under general insurance for any untoward event such as fire, flood, cyclone, Typhoon, Lightning, explosion, riot, Earthquake risks etc.


7. My Own Shop


This is a loan which is granted for purchasing a shop premise or construction of a shop. The features of the home loan schemes are as follows:
 

  • The loan can be availed by individuals, professionals, self-employed individuals, registered partnership firms, companies as well as businessmen. The only criteria is that the borrower should be actively engaged for at least a period of 3 years
  • The loan can be utilized to purchase a new commercial space or a new shop or a second hand shop or residential space, for constructing a new commercial space or a shop and for the renovation of a business premise. In case of purchasing a second hand space or shop, the residual life of the commercial space should not be lower than the repayment tenure opted plus two years.
  • The maximum amount of home loan available at Indian Bank under this Indian Bank housing loan scheme is limited to Rs.50 lakhs
  • The margin retained by the bank would be equal to 25% of the cost of the property
  • A repayment holiday or moratorium period is granted under the loan after which the customer is supposed to repay the loan within 120 months including the repayment holiday granted
  • Various collateral securities would be required to avail the loan. An equitable mortgage of the property to be purchased, personal guarantee of the directors or partners in individual capacity and a third party guarantee whose net worth should not be less than the amount of loan sought.
  • If the bank retains a 40% margin of the cost of the property, the requirement of the third party guarantee would be foregone
  • No security, collateral or third party guarantee would be required for Indian Bank Home loans valuing a maximum of Rs.0 lakhs granted to MSME borrowers and such loan accounts would be covered under the CGS of CGTMSE.

Indian Bank Home Loans Interest Rate

Indian Bank also has introduced an MCLR based rate @ 1 year MCLR + 0.10% = 9.55% for home loans up to Rs. 75 lakhs. In case of home loans greater than Rs. 75 lakhs, the rate is computed at 1 year MCLR + 0.30% = 9.75%. Some loans have also been handed out earlier based on BPLR calculations as shown below;
 

1.  Home Loan-Variable Rate (both Indian resident and NRI)
 

Sanctioned Limits up to Rs.20 lakhs

Period of Loan

Interest Rate w.e.f 08.06.2015 (for accounts availed up to 30.06.2010)

Up to 5 years

10.20%

>5 years up to 10 years

10.45%

>10 years up to 15 years

10.70%

>10 years up to 15 years

10.95%

 

Sanctioned Limits above Rs.20 lakhs & up to Rs.30 lakhs

Period of Loan

Interest Rate w.e.f 08.06.2015 (for accounts availed up to 30.06.2010)

Up to 5 years

10.45%

>5 years up to 10 years

10.70%

>10 years up to 15 years

10.95%

>15 years

11.20%

 

Sanctioned Limits above Rs.30 lakhs & up to Rs.2 Crores

Period of Loan

Interest Rate w.e.f 08.06.2015 (for accounts availed up to 30.06.2010)

Up to 5 years

10.95%

>5 years up to 10 years

11.20%

>10 years up to 15 years

11.45%

>15 years

11.70%

 

Sanctioned Limits above Rs.2 Crores

Period of Loan

Interest Rate w.e.f 08.06.2015 (for accounts availed up to 30.06.2010)

Up to 20 years

14.70%


Plot Loan (both resident and NRI-variable rate)
 

Maximum Repayment period: 15 years

Category of Loan

Interest Rate w.e.f 08.06.2015 (for accounts availed up to 30.06.2010)

For home loans sanctioned up to Rs.10 lakhs

11.20%

 

 

For limits above Rs.10 lakhs, the downward revision in BPLR is passed on to the account.


‚ÄčIB Home Improve (variable rate)


Maximum Indian Bank Home Loan amount: Rs.5 lakhs; Maximum Repayment period: 5 years

 

Interest Rate w.e.f 08.06.2015 (for accounts availed up to 30.06.2010

11.45% variable

Documentation

For IB Home Loan
 

  • A filled application form with 3 passport sized photographs. 
  • Proof of Identity such as, Voter’s ID / PAN Card / Passport / Driving License. 
  • Proof of business address in case of businessmen / industrialists.
  • Proof of residence such as recent Passport copy / Telephone Bill / Property Tax Receipt / Electricity Bill / Voter`s ID 
  • Assets and liabilities statement in the Bank’s format from applicant(s), Co-applicant(s) and guarantor(s) 
  • Proof of Employment for a salaried applicant.
  • Salary slips of the last 6 months. 
  • Bank statement of account of the applicant(s) for a period of 6 months/12 months for verifying salary credit/ nature of transaction / other income etc. 
  • Proof of other income like rent, interest on investment, if any. 
  • ITR and Balance Sheet for the past three financial years in the case of self employed, professionals, and businessmen.
  • Form16/Income Tax / Wealth Tax (if applicable) Returns for the past 3 years 
  • Agreement of Sale / Sale Deed. 
  • Approved Building Plan. 
  • Title Deed Documents for 13 years/30 years as the case may be.
  • Proof of title in the Revenue Records. 
  • Home Loan where security value is Rs.50 lakhs and above, valuation by two independent valuers has to be obtained.
  • Property Tax receipts wherever applicable (Up-to-date EC, Legal Opinion from Advocate & Valuation of property from Engineer will be arranged by Bank at applicant`s cost) 

For IB Home Loan Plus
 

  • Request letter
  • Up to date EC and tax paid receipt from the competent authority
  • Valuation Report from Panel Engineer
  • Letter of authorization for recovery of EMI.

For Home Improvement Loan
 

Apart from documents required in home loan, a detailed price quotation for articles to be purchased is also to be submitted.


For Plot Loan


Apart from documents required in home loan, a detailed price quotation for articles to be purchased is also to be submitted.


For Home Loan Combo


Apart from documents required in home loan, a detailed price quotation for articles to be purchased is also to be submitted.


For NRI Home Loan
 

  • A filled application form with a passport sized photograph. 
  • Salary certificate.
  • Proof of other income like rent, interest on investment, if any. 
  • Balance Sheet for the past three financial years in the case of self employed professionals, and businessmen.
  • Income Tax/Wealth Tax (if applicable) Returns of last 3 years.
  • Agreement of Sale / Sale Deed.
  • Approved Building Plan. 
  • Title Deed Documents for 30 years.
  • Proof of title in the Revenue Records. (Legal Opinion from Advocate & Valuation of property from Engineer will be arranged by Bank at applicant’s cost).
  • Passport copy with page containing visa stamping.
  • Copy of work permit
  • Employment contract copy (an English translation duly attested by employer/consulate/embassy/our foreign branches , if it is in any other language)
  • Copy of identity card issued by the employer.
  • Copy of continuous discharge certificate in respect of applicants employed in merchant navy.
  • Brief write up about employment profile for the last 3 years.
  • Brief write up about the company /institution where employed i.e. constitution, activity, employee base, net profit etc.
  • Statement of overseas Bank account for the last six months which reflect salary credit , savings etc.
  • Specific irrevocable Power of Attorney, if applicable, duly stamped and notarized / attested by Indian Embassy / consulate and adjudicated in India.
  • Additional documents for PIOs v A photocopy of the PIO card or any of the under noted documents; 

    a) Current Passport indicating place of birth in India 
    b) Indian Passport if held earlier 
    c) Parents’ or grandparents’ passport with details therein substantiating his claim of being a PIO

Indian Bank Home loan EMI Calculator

  • PaisaBazaar offers EMI calculator for the convenience of its applicant. The EMI calculator is a simple and handy tool that makes the financial planning of the applicant really easy. One may know how much saddle the upcoming loan EMI is going to put on their monthly budget.
  • Any Interested applicant may login to www.paisabazaar.com. The applicant may select the EMI calculator and fill up the requisite details accordingly. Post-filling up the details such as Loan Amount, Rate of Interest and Tenure, the results would be prompt and the applicant may know the forthcoming EMI amount in case he/she applies for the personal Loan.

Applying for a Home Loan

The bank offers Home Loan application through the Paisabazar.com website. Any customer wanting to avail of any of the Home Loans offered by Indian Bank can visit the mentioned website, fill up the required details and apply for the loan.