Indian Overseas Bank Loan Against Property
Last Updated : Nov. 22, 2016, 6:42 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.