Loan Against Property

OBC Loan Against Property

OBC Loan Against Property

Last Updated : Dec. 3, 2016, 6:56 a.m.

About OBC Loan Against Property

In today’s world, people are constantly looking for different ways to earn more than their income. As a result, fulfilling one’s needs and the desires is quite challenging. For situations when you find it difficult to get through such phases smoothly and to keep your financial life stress free, a loan is definitely helpful. Whether you are in search of money for your personal use for the business purpose, loans from banks is safer as compared to the other ways of taking finances.

As compared to other loans, loan against property is the one where you get money in return of your own property asset. Oriental Bank of Commerce mortgage loan scheme offers loan at the low-interest rate, longer repayment period and higher loan amount. The bank offers Term Loan as well as Overdraft facility for specified purpose against the security of immovable property.

Read this blog to know all the info about the OBC loan against property scheme like EMI, eligibility, processing fees, compulsory documents, etc.

Oriental Mortgage Loan Scheme Details

Interest Rate8.70% - 9.80%
Loan AmountRs. 5 lakhs to Rs. 10 Crores
For Salaried: 36 months of gross income in case of salaried persons
For Self-employed Professionals: 4 times of average net annual income of last 2-3 years
TenureUp to 10 years
Processing FeesOverdraft - 0.10% of loan amount +Service Tax, if any
Term / Demand loan - Upfront fee of 0.50% of the loan amount plus service tax, if any
Prepayment ChargesNIL
Purpose of LoanTerm loan
Overdraft facility for specified purpose against the security of immovable property (i.e. for investment in business, personal expenses etc.)

How to Apply

The procedure to apply for a mortgage loan at OBC is simple and quick. Just follow the following steps:

  • Fill up the loan application form with mandatory details like the name of the applicant, date of birth profession, income, etc.
  • Paste passport size photos in the application form
  • Attach all the required documents with the form
  • Submit the above papers to the nearest OBC branch

OBC Loan Calculator

A loan EMI calculator is the tool which is used to calculate the monthly installments that the borrower has to pay to the lender against the loan.You can calculate the EMI of Oriental Bank of Commerce mortgage loan or loan against the property by mentioning the below details:

  1. Loan Amount
  2. Loan Tenure
  3. Rate of Interest

Once you mention the above details, a table similar to the one given below, will appear. For your better understanding, let us take an example that you are applying for a mortgage loan with the following particulars:

  • Loan amount – 5,00,000 to 10,00,00,000
  • Tenure – 10 years
  • Interest Rate – 10.85% p.a.

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

Table Showing EMI, Interest Outgo, and Total Repayment Amount

EMI, Total Interest Outgo, Total Repayment (Interest + Principal)

YearPrincipalInterestBalance Amount
1₹ 29,321₹ 52,820₹ 4,70,678
2₹ 32,665₹ 49,476₹ 4,38,013
3₹ 36,391₹ 45,750₹ 4,01,622
4₹ 40,542₹ 41,599₹ 3,61,079
5₹ 45,166₹ 36,975₹ 3,15,913
6₹ 50,318₹ 31,823₹ 2,65,595
7₹ 56,057₹ 26,084₹ 2,09,537
8₹ 62,451₹ 19,690₹ 1,47,085
9₹ 69,575₹ 12,566₹ 77,510
10₹ 77,572₹ 4631₹ 0

Eligibility Criteria

All banks have set certain criteria for the loan applicant. Similarly, the loan eligibility criteria of OBC for the loan against property is:

  • Individuals & Joint borrowers (including Doctors / Professionals & Self Employed) who are Income Tax Assessed for at least two consecutive years
  • Individual engaged in agriculture & allied activities
  • Company / firms jointly with their Directors/ Partners are eligible, where security is either owned by the Director / Partner or the company/ firms itself and the income generated by the Company/ Firm is considered
  • NRIs are also eligible to avail credit facility under Oriental Mortgage Loan Scheme subject to compliance with RBI norms. However, a resident Indian shall be co-borrower in such cases

Documents Required

The documents required to get a mortgage loan from Oriental Bank of Commerce are:

  • Loan Application Form
  • Identity Proof (Voter ID Card/PAN Card/Driving License/Adhaar Card,etc.)
  • Address Proof (Voter ID Card/Ration Card/Adhaar Card/Driving License,etc.)
  • Form 16
  • Last 2 years Income Tax returns
  • Income Proof
  • Bank Statements

OBC Loan Application Form

In the loan application form of Oriental Bank of Commerce, you have to mention the below details as mentioned in your KYCs:

  • Name of the applicant/s
  • Date of birth
  • Monthly or Annual Income Details
  • Permanent Address
  • Profession of the applicant
  • Purpose of the loan
  • Property against which the loan is applied
  • Payment mode

Loan Against Property Interest Rate

Oriental Bank of Commerce offers loan against property at floating rate of interest depending upon the 1 Year MCLR of the bank. At present, the interest rate is MCLR+2.25% that is 10.855% p.a.

Processing Fees

On LAP, the processing fee charged by the bank is up to 0.50% of the loan amount + service tax for Term Loan or Demand Loan. However, on Overdraft, the charges are 0.10% of the loan amount + service tax.

Features of OBC Mortgage Loan

Oriental Bank facilitates LAP with many advantages and features that make it unique and effective. The bank gives higher loan amount at low-interest rates on the mortgage loan with quick loan approval and minimal documentation as the add-on benefits. Here are some of the main features and advantages of taking LAP from OBC that will help you in taking the decision:

  • Higher loan amount up to 10 Crores
  • Longer repayment period up to 10 years
  • Low rate of interest- 10.85% per annum
  • Processing fees- 0.50% of the loan amount
  • Loan available for any legitimate need-based Investments/expenses
  • Loan against self-occupied residential/commercial/industrial land & building
  • Overdraft limit will be repayable up to a maximum age of 75 years of Guarantor
  • Assessment of loan up to 60% of the realizable value of the property

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