Loan Against Property

Indian Overseas Bank Loan Against Property

Indian Overseas Bank Loan Against Property

Last Updated : July 5, 2017, 11:19 a.m.

Whenever there is a need of huge amount of money, your valuable assets like property prove to be very helpful. If you are in such need and looking for a loan that covers all your desires like your child’s higher education, marriage, expansion of business, home renovation, travelling, etc. Indian Overseas Bank loan against property is the one stop solution.

Loan Against Property

The bank provides loan against the residential and commercial property to salaried as well as self-employed professionals at an attractive rate of 12.75% p.a . The bank offers a hassle-free loan with easy documentation and low charges to make it more convenient and reachable for the customers. You can borrow up to 50% of the market value of your property and the security of the equitable mortgage of properties or any liquid assets like LIC policies/IVP/NSC/UTI, etc.

To know more about the detailed information of IOB loan scheme, read this article.

Indian Overseas Bank Loan Against Property Details

Particulars Description
Interest Rate 12.75% per annum
Loan Amount Upto Rs. 25 lakhs
Tenure Upto Up to 7 years
Processing Fees 0.62% of the loan amount
Prepayment Charges NIL

How to Apply

We all know what is loan against property, but while applying for the loan, many of us get confused and spend unnecessary time in the procedure. So, the simple and crisp way to apply for a loan against property at Indian Overseas Bank can be understood in these 3 simple steps:

  • Fill up the loan application form
  • Attach KYCs and other mentioned documents
  • Submit the above documents to the nearest IOB branch

Loan EMI Calculator

The loan EMI calculator is the tool that is available online and is used to all calculate EMIs of all kinds of loans like a loan against property, personal loan, business loan, home loan, etc. This calculator is customer-friendly and hence can be used by anyone. The mandatory details to be filled in the calculator are:

  • Loan Amount
  • Tenure
  • Interest Rate

By mentioning the above-mentioned details, you will get a table with monthly installments, total interest amount and the total amount (principal+interest). Here is an example for your better understanding:

Table for EMI per month, Total Interest Outgo, and Total Amount

Amount (in Rs.) Interest Rate (p.a) Loan Tenure (in Years) EMI (in Rs.) Total Interest Outgo (in Rs.) Total Amount (Principal + Interest) (in Rs.
15,00,000 12.75% 1 1,33,800 1,05,600 16,05,600
15,00,000 12.75% 2 71,137 2,07,281 17,07,281
15,00,000 12.75% 3 50,360 3,12,978 18,12,978
15,00,000 12.75% 4 40,055 4,22,658 19,22,658
15,00,000 12.75% 5 33,938 5,36,277 20,36,277
15,00,000 12.75% 6 29,914 6,53,779 21,53,779
15,00,000 12.75% 7 27,084 7,75,097 22,75,097

Amortization Table

Year Principal (in Rs.) Interest Outgo (in Rs.) Balance Amount (in Rs.)
1 1,41,858 1,83,150 13,58,142
2 1,61,038 1,63,970 11,97,104
3 1,82,816 1,42,192 10,14,288
4 2,07,537 1,17,471 8,06,751
5 2,35,602 89406 5,71,149
6 2,67,459 57549 3,03,690
7 3,03,975 21383 0

Eligibility Criteria for Indian Overseas Bank loan against property

To apply for a mortgage loan at IOB, you must meet the below-given criteria decided by the bank:

  • Individuals/Self-employed Professionals like Doctors, CAs, Engineers, Architects
  • Salaried employees of select Public and Private limited companies, state and local bodies
  • Professors of colleges/Universities, High end IT employees etc
  • Individuals with the minimum age of 20 Years
  • Minimum Net Monthly Salary of Rs.75,000/- for salaried employees
  • Minimum Annual Income of Rs. 9,00,000/- for self-employed professionals
  • Minimum work experience of 2 years

Loan Eligibility Calculator

Generally, banks calculate loan eligibility on the basis of age, income, property value and repayment capacity of the borrower. Indian Overseas Bank considers the following details to give loan:

  • Age of the applicant
  • Value of the property
  • Monthly/Annual Income
  • Monthly Expenses
  • Good credit history

LAP Documents Required

List of documents for getting a loan from Indian Overseas Bank is:

  • Identity Proof (Voter ID Card/PAN Card/Aadhaar Card/Driving License, etc.)
  • Address Proof (Voter ID Card/Aadhaar Card/Driving License/Electricity Bill/telephone Bill,etc.)
  • Employment Proof or Professional Membership Card
  • Last 3 months bank statements
  • Latest Salary Slip or current dated salary certificate with the latest Form 16
  • Processing fee cheque
  • Current EMI payment details, if any
  • Last 3 years IT return for self-employed professionals

Processing Fees

Banks and NBFCs charges a certain processing fee on loans which is other than the rate of interest offered. On LAP, the IOB charges a processing fee of 0.62% of the loan amount which is one of the lowest in the market.

Indian Overseas Bank Loan Interest Rates

IOB loan against property or mortgage loan rate of interest is one of the lowest interest rates offered on the mortgage loan with an attractive rate of 12.75% per annum.

LAP Interest Rates Comparison

If you want to know the rates of other banks too and do the comparison here are some of the LAP rates of the top banks in India:

SBI – 10.35% to 11.90% p.a

Axis Bank- 9.50% p.a onwards

HDFC Bank- 10.90% to 13.15% p.a

ICICI Bank- 11% to 14% p.a

Citibank – 10.25% to 11.50% p.a

Canara Bank- 9.65% p.a

Standard Chartered Bank- 10.75% to 11% p.a

Andhra Bank – 11.45% to 11.95% p.a

Features & Benefits

Here are some of the main features of the mortgage loan facility of Indian Overseas Bank:

  • Higher loan amount up to Rs. 25 lakhs
  • Longer tenure up to 7 years
  • No prepayment charges
  • Low processing fees of 0.62%
  • Borrow up to 50% of the market value of the property
  • Equitable mortgage of properties or any liquid assets like LIC policies/IVP/NSC/UTI, etc.

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