Owning a home is everybody’s dream since it has a dual benefit of not only ensuring shelter for self and loved ones but also acts as an investment instrument offering us attractive returns over a period of time. More often than not, meeting the costs of procuring a home or a piece of land often comes by means of financing by taking a loan from a bank since it may not be affordable outright, owing to the costs involved in procuring one.
Being a leading public sector banking institution in the country, IOB’s Subha Gruha home loan scheme can be the ideal partner for funding your housing dream. This loan is available for a wide range of housing requirements, open for application to the likes of resident Indians as well as NRIs.
Feature & Benefits of IOB Home Loan:
Available to individuals and groups:
This loan scheme is not only open for individual applicants, but also to groups of individuals and members of co-operative societies. The age cap is frozen at 55 years, extendable to 60 years if legal heirs are available to join as co-applicants.
Loan purpose:
IOB makes this loan available for a wide range of housing needs such as buying a house/flat/plot and for the renovation of existing house/flats under its Home improvement loan scheme.
High quantum of loan offered:
You can look forward to getting a funding of up to 90% of the costs involved in buying the home, which includes registration and documentation charges. The quantum of loan offered is dependent on age and repayment capacity. This implies a margin of 10 to 25%, ensuring little burden on the borrower.
Flexible payment term options:
IOB offers you up to 30 years to repay the loan amount along with applicable interest charges in EMIs (Equated Monthly Installments). You’re free to choose a term of your choice as per your convenience.
No Prepayment charges:
The most outstanding benefit of availing a home loan from IOB is that you can consider paying off the loan anytime during the term since the bank does not bill penalty for early repayment.
Holiday period:
You can also look forward to a high quantum of holiday period depending on the property involved. A maximum of 18 months is offered as holiday period on construction loan (from date of loan disbursement or construction completion date, whichever is earlier) or 3 months in case of house purchase.
IOB Home loan interest rate:
The interest rates offered by IOB are affordable and transparent. It follows the MCLR concept mandated by the RBI to arrive at applicable rates for home loans. The table below provides a breakup of rates applicable for a combination of the loan amount and repayment term. The benchmark 1-year MCLR effective from May 10, 2017, is 8.55%.
Home Loan amount up to Rs. 30 lakhs:
| Repayment Tenure | Floating Interest Rate p.a. |
|---|---|
| 1-5 years | 8.55% |
| 5-10 years | 8.55% |
| 10+ years | 8.55% |
Home Loan amount above RS. 30 lakhs to Rs. 75 lakhs:
| Repayment Tenure | Floating Interest Rate p.a. |
|---|---|
| 1-5 years | 8.80% |
| 5-10 years | 8.80% |
| 10+ years | 8.80% |
Home Loan amount above Rs. 75 lakhs:
| Repayment Tenure | Floating Interest Rate p.a. |
|---|---|
| 1-5 years | 9.05% |
| 5-10 years | 9.05% |
| 10+ years | 9.05% |
Since the MCLR is subject to revision at frequent intervals, make sure to check with the bank for the latest rates before applying for a home loan.
IOB Home Loan Eligibility Criteria:
- Individual applicants should not be older than 55 years at the time of application. This condition gets a further extension to 60 years if the applicant is a legal heir is joining as a co-applicant.
- Group of individuals or members of co-operative societies.
- Salaried individuals should be in a permanent job with at least 2-3 years in service.
- Self employed individuals should be in the relevant field for at least 3 years.
IOB Home Loan Documentation:
- Application form in the required format. The form can be downloaded from the website of IOB or be obtained from the nearest banking branch.
- Salary certificate/payslips for salaried applicants.
- Proof of income such as ITR & bank statements for self-employed applicants.
- Experience proof supporting the line of business for non-salaried individuals.
- Sale agreement of house/flat.
- Co-operative societies must submit proof of membership.
- Construction estimates, Valuation Report, Legal Opinion from approved lawyer/engineer.
IOB Home Improvement Scheme:
Apart from the regular home loans, IOB also offers to finance for home improvement as a separate scheme. The purpose of this loan consists of a variety of activities such as repairs & renovation, painting, rewiring, replacing tiles and marbles, carpentry work and so on.
Highlights:
- The loan quantum ranges from Rs.25,000 up to Rs.15 lakhs, disbursed depending in the requirement and repayment capacity of the applicant.
- The borrower can repay the loan in up to 144 (12 years) Equated Monthly Installments (EMIs), depending on what he/she chooses at the time of signing up for the loan.
- The rate of interest applicable is the same as the table provided in the interest rate section of this article.
- The repayment is activated only after the expiry of 3 months from the date of a loan (holiday period).
- The security is in the form of mortgage, where the house/flat renovated will act as collateral until full repayment of the loan.
IOB NRI Home Loan:
The bank also offers housing loan for NRIs (Non-Resident Indians) through its NRI Home Loan scheme. It is offered to NRIs with a valid Indian passport or PIO (Person of Indian Origin) holding passport from countries except for Pakistan, Afghanistan, Sri Lanka, Bangladesh, Nepal, Iran, Bhutan & China.
Highlights:
- The purpose of this loan is to help NRIs financially in buying, building or renovating a house.
- The maximum loan quantum offered for building or buying a new house is up to 80% of the costs involved. A cap of Rs.15 lakhs is offered for home renovations. The margin for the borrower varies between 10 to 25% of the project costs.
- The repayment tenure offered is up to 15 years, flexible on the basis of the requirement of the borrower. Repayment is in the form of EMIs.
- The processing fee is charged at the rate of 0.57% of the loan amount, up to a maximum of Rs.15,000.
- The rate of interest applicable is the same as the table provided in the interest rate section in this article.
