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Loan Against Property

Indian Bank understands the unavailability of financial assistance one may have at times. Loan against property allows customers to unlock the true value of their property in the hour of need.  Expense of any nature other than speculative are covered in the scope of loan against property. With Indian Bank loan against property customer do have the access of convenient financing with lower interest rate as compared in personal loans. The distinctive features which make Loan against property in Indian Bank more lucrative are:
 

  • A cosmic experience of more than 108 years in banking and serving the entire nation with a team of over 20222 dedicated staff.
  • Hassle free and transparent processing system in place to convey the utmost trust and transparency in its product.
  • A bank with 100% core banking system in place, Indian Bank believes in harnessing ICT (Information and Communication Technology) for any financial requirement should be met well just in time.
The other salient feature of Indian Bank Mortgage loan is:
 
  • Maximum loan amount could be 200 lakhs, with the margin as 50% of resale value of the property offered as security.
  • The acceptable security are  Equitable mortgage of non-encumbered residential house /flat, non-agriculture urban landed property, commercial or industrial property in the name and possession of the borrower i.e. either self-occupied or spouse. The property thus mortgaged should be clear, absolute unencumbered and marketable to the satisfaction of the Bank. The minimum age for individual is 18 years and the maximum age is 60 years as per the exit date or date of retirement whichever is earlier.
  • Processing fee is charged @ 1.173% on loan amount
  • Maximum repayment tenure allowed is 84 EMI excluding any repayment holiday.
  • Zero pre closure charges in case the loan is closed using own source .In case of balance transfer or take over by any other lender, the pre-closure charge is implied at the rate of 2.25% on the balance outstanding amount or applicable drawing limit, whichever is higher.
 Security / collateral


The acceptable security towards loan against property in Indian bank is the Security Equitable Mortgage of Property. 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.

Rate of interest


Currently, loan against property is offered at an interest rate of 16.45% which is subject to change.

Eligibility


India Bank offers Loan against property to salaried individuals, self-employed professionals and self-employed non- professionals as well.  The eligibility is derived post consideration of various financial factors of the prospective customer; however the principal factor is the repayment capacity. Repayment capacity is basically a statistical figure obtained post analysis of personal profile such as age, Source of Income, Qualifications , Dependents , Past payment history , current asset and liabilities , additional source of income such as spouse’s income etc.
 
Salaried resident individuals
 

  • Permanent Employees of Central / State Govt. /Quasi Government Bodies/Public Limited companies/ Reputed Private Limited companies with clear record of paying timely salaries. 
  • Should have minimum three years of work experience. 
  • Should have regular minimum monthly income of Rs.15,000/- & take home pay should be more than 40% of gross income after deduction of EMI for the proposed loan, apart from other deductions. 
 Self-employed / Professionals / Businessmen
 
  • Eligibility is determined basis their average income earned in the last 3 years.
  • Should have minimum net annual income has to be Rs.1,50,000/- after deduction of proposed EMI. 
Firms and companies:
 
  • The eligibility in cases of Firm and companies the primary factor is based on cash flow. 
  • The firm / companies should be registered under any of the act or as per the section applicable to the domicile state.

Documents

I. Completed Application Form with passport size photograph. 
ii. Proof of Identity such as PAN Card / Voter’s ID/Passport/Driving License. 
iii. Proof of residence such as Recent Telephone Bill / Electricity Bill / Property Tax Receipt / Passport / Voter’s ID. 
iv. Proof of business address in respect of businessmen / industrialists. 
v. Proof of Employment.
 

  1. Salary Certificate
  2. Proof of other income like rent interest on investment, if any

vi. Balance Sheet for the past three financial years in the case of Professionals, Businessmen & Self-employed. 
vii. Income Tax / Wealth Tax (if applicable) Returns for the past 3 years. 
viii. Sale Deed. 
ix. Approved Building Plan. 
x. Title Deed Documents for 30 years. 
xi. 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).

Ind Reverse Mortgage Loan

Ind Reverse mortgages loan is customized for such senior citizens who own a house /flat however have a requirement of quick financial help at lower interest rate of interest. Unlike traditional Indian bank mortgages loan, the reverse mortgage loan does not require monthly mortgage payments. The interest and fees on the mortgage are added to the loan balance each month. Over time, the home equity will decrease as the loan balance grows. It’s the reverse of a traditional mortgage.


The features and benefits of Ind Reverse mortgage loan are
 

  • Maximum available loan amount is Rs.40 lakh.
  • The amount of loan will depend on realizable value of the residential property as assessed by the Bank. The marketable value of the property is calculated at 10% less than the Market Value assessed by Bank’s Panel Engineers.
  • The loan amount shall be disbursed by Bank on regular monthly which is often referred as annuity.
  • For exceptional case of medical exigency, a lump sum of 20% of the net loan amount shall be disbursed. This would be however restricted to a maximum limit of Rs.15 lakhs.
  • The margin shall be as 61% on the marketable value of property.
  • Zero processing fee for Existing Indian Bank customer. For New to the bank customer the processing fee shall be charged @ 291/- per lakh.
  • The maximum repayment tenure allowed is for 15 years with rollover facility. Rollover of the term shall be subject to bank’s discretion and revaluation of the property.
  • Applicants have to provide the upfront consent for the revision of monthly payment which could be altered basis the revaluation of property. Revaluation of property will be done once in 3 years and interest rate will be reset once in 5 years.
  • The loan amount need not be repaid during the lifetime of the borrower / spouse. The borrower / spouse can continue to stay in their home during their lifetime.
  • Nil pre-payment charge for any foreclosure of the loan.

Rate of interest
 

10.45% .The Reverse Mortgage Loan interest rate shall be subject to reset clause – Interest reset at the end of every 5 years based on the then prevailing Reverse Mortgage Interest on the date of reset.


Eligibility
 

  • Senior Citizens above 60 years, including retired staff of Indian Bank.
  • Married couples will be eligible as joint borrowers for financial assistance provided one of them is above 60 years of age. 
  • Applicant should be owner of self-acquired residential property with absolute, clear title / conveyance and self-occupied and it should be principal residential house / flat, located in India. 
  • The property should be free from encumbrance and is saleable and the house / flat to be located in India.
  • For cases of inherited residential property if it is devolved on partition or owing to being the sole legal heir also can be accepted provided the title of the property is free from encumbrance. 
  • The residual life of the property should be more than 20 years.

Documents
 

  1. Completed Application Form with passport size photograph.
  2. PAN Card copy.
  3. Proof of residence such as Recent Telephone Bill / Electricity Bill / Property Tax Receipt / Passport / Voter’s ID.
  4. List of legal heirs with name, age, address etc.
  5. Sale Deed.
  6. Approved Building Plan.
  7. Title Deed Documents for 30 years.
  8. 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).

Security / collateral
 

The acceptable security towards loan against property in Indian bank is the Security Equitable Mortgage of Property. 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.

Other Important terms & conditions for Mortgage & Reverse Mortgage Loans

  • For cases of any delayed payment in EMI, written communications, telephonic reminders or visits by the Bank’s representatives to the borrower’s place or residence will be used as a loan follow up measure.
  • A prior written notice will be given before resorting to legal or other recovery measures including re-possession of securities. In the said notice, it may be stipulated that the borrower / guarantor / mortgagor ought to make repayment within one week of issuing notice failing which further recovery action will be initiated. Bank will follow all procedures as required under Law for recovery / repossession of securities.
  • In accounts / cases which are entrusted to Recovery Agents, keeping in tune with principles of natural justice, a notice will be sent to the borrower / guarantor / mortgagor informing that as the borrower has failed to repay the dues, the portfolio of recovery of dues in the account have been entrusted to Recovery Agents specifying their names, who would be assisting the Bank in effecting recovery.
  • In the notice to be issued to the borrower/mortgagor it may be indicated that Bank will take steps to retrieve / obtain back the documents from Court / DRT and within seven days of receipt of title deeds from Court / DRT, the same will be handed over to borrower.
  • Indian Bank  retains the right to alter any charges or fees from time to time or to introduce any new charges or fees, as it may deem appropriate, with due intimation to customer.
  • Fees and Charges are subject to change from time to time at the sole discretion of Indian Bank.
  • Indian Bank is authorized to disclose from time to time any information relating to the loan to any credit bureau (existing or future) approved by Government of India and Reserve Bank of India without any notice to the borrower. Indian Bank is also authorized to make inquiries with the Credit Information Bureau of India (CIBIL) and get the applicants Credit Information Report