Indian Bank Home Loan

About Indian Bank

Indian Bank is an Indian state-owned financial services company established in 1907 and headquartered in Chennai, India. It has 20,661 employees, 2594 branches and is one of the top performing public-sector banks in India. It has overseas branches in Colombo and Jaffna in Sri Lanka, and in Singapore, and 223 correspondent banks in 71 countries. Since 1969 it has remained a nationalised bank.

What Is a Home Loan?

Home Loan is offered to individuals who wish to construct or buy a house. The property bought or about to be constructed is mortgaged as collateral until the repayment of the loan is completed with full interest. The repayment of the loan generally depends on the capacity of the borrower. Normally, the home loan tenure ranges between 5 to 30 years. The borrower can opt for either floating type of interest of fixed interest rate. Home loan provides tax benefits to the borrowers.

An Introduction to Indian Bank Home Loans

Being one of the largest bank in India, Indian Bank offers a wide range of services in the personal loan segment. It is one of the most preferred bank in India by all kinds of people for any financial service. Packed with exclusive benefits, Indian Bank Home Loans are tailor made catering to the needs of various customers.

Advantages of Indian Bank Home Loans

• Low interest rate
• No hidden costs and administrative charges
• Low processing fees
• No security needed
• Less paperwork
• No prepayment penalties

Features of Indian Bank Home Loans

Key Highlights

Objective

Loans for construction / acquiring of new or existing house/flat not older than 30 years or for extension in the existing house/flat

Eligibility Criteria

To avail the personal loan from Indian Bank, you need to have the following eligibility criteria.

• You should be 18 years old or above
• Steady income
• Salary slip of last 3 months
• Proper Address Proof and Identity proof

Loan Amount

• 60 times of Gross Monthly Income subject to availability of 40% Take Home Pay or more than Rs.20000/- after the proposed EMI including the requisite margin.
• For Repair or Renovation: Rs. 10 lakhs (Max)

Loan Tenure

• Loans for purchase / construction of House / Flat: 30 years (including holiday period)
• Maximum Holiday Period of 18 months allowed for Home Loans for the purpose of construction of House / Flat
• Maximum repayment period for Repairs and Renovation: 120 months

Prepayment Charges: Nil

Processing Fees

Processing fee is at a rate of 0.229% on loan amount with a maximum of Rs.20381/-

Security

• Equitable Mortgage of Property purchased / constructed out of loan proceeds
• (Equitable Mortgage to be registered (at Applicant’s cost) if there is a provision for the same in the State where property is located)
• CERSAI registration (at Applicant’s cost) to be done

  (1) For Loans up to Rs 5 Lakhs - Rs 50 + ST

  (2) For Loans above Rs 5 Lakhs – Rs 100 + ST

Interest Rates

Margin

a) Upto Rs. 20 lakhs : 10%

b) Above Rs. 20 lakhs upto Rs.75 lakhs : 20%

c) Above Rs.75 lakhs: 25%

d) For repairs or renovation: 30%

Documents Required to Apply for Indian Bank Home Loans

Important documents to be submitted while applying for personal loans with Indian Bank

• Completed Application Form with 3 passport size photographs.
• Assets and liabilities statement in the Bank’s format from applicant(s), Co-applicant(s) and guarantor(s)
• Proof of Identity such as PAN Card / Voter’s ID/Passport/Driving License.
• Proof of residence such as Recent Telephone Bill / Electricity Bill / Property Tax Receipt / Passport / Voter’s ID
• Proof of business address in respect of businessmen / industrialists. Proof of Employment.
• Salary Certificate generally for the last 6 months.
• Statement of Bank account of the applicant(s) for a reasonable period, say 6 months for verifying salary credit/other income/nature of transaction etc
• Proof of other income like rent, interest on investment, if any.
• Balance Sheet for the past three financial years in the case of Professionals, Businessmen & Self-employed.
• A brief note on the nature of business/service, year of establishment, constitution, securities charged in respect of other loans availed from our Bank/other Branches/Banks/Finance companies / Other sources.
• Form16/Income Tax / Wealth Tax (if applicable) Returns for the past 3 years
• Agreement of Sale / Sale Deed.
• Approved Building Plan.
• Title Deed Documents for 13 years/30 years as the case may be.
• Proof of title in the Revenue Records.
• Property Tax receipts wherever applicable (Up-to-date EC, Legal Opinion from Advocate and Valuation of property from Engineer will be arranged by Bank at applicant’s cost)

Insurance

Property (offered as security) to be insured at borrower`s cost with Bank clause against fire, flood, earthquake, riot and other risks, which are normally covered by insurance companies.

Indian bank Home Loan Plus

Objective

Any bonafide purpose other than speculative purpose

Eligibility

• All existing Home Loan customers who have repaid a minimum of 36 EMI’s regularly. NRIs and Staff Members of our Bank including retired staff members may also be considered by the sanctioning authority.
• People with 40% Take Home Pay on gross income after the proposed EMI

Loan Amount

Minimum amount – Rs. 1.00 lakh. Maximum amount – Rs. 10.00 lakhs

Margin

LTV Ratio of 90% or 80% as the case may be to be maintained for home loan outstanding and 30% margin on the residual value of the House Property to be maintained for the top up loan

Processing Fee: 1.173% on loan amount

Repayment:

120 months

Prepayment charges:

Nil

Security

Extension of EM on the house property.

(Registration of extension of EM wherever it is mandatory)

CERSAI registration (at Applicant’s cost) to be done

• For Loans up to Rs 5 Lakhs - Rs 50 + ST
• For Loans above Rs 5 Lakhs – Rs 100 + ST

Documents Required

• Request letter
• Up to date EC and tax paid receipt from the competent authority
• Valuation Report from Panel Engineer
• Letter of authorization for recovery of EMI.

NRI Home Loans

Eligibility

• Maximum permissible age at the time of applying is 50 years & at the end of repayment period is 60 years.
• NRIs gainfully employed with a residual contract period / service of atleast 3 more years to run.
• NRI professionals with regular monthly income.

Loan Amount

• 36 times of Gross Monthly Income or 60 times of Net Monthly Income whichever is higher.
• Take home Income should be more than 40% of gross income after deduction of EMI for the proposed loan, apart from other deductions.
• For Repair & Renovation: Rs.5 lakhs (Max.)

Margin

• For Loans upto Rs. 20 lakhs: 10%
• For Loans above Rs.20 lakhs upto Rs.75 lakhs: 20%
• For Loans above Rs.75 lakhs: 25%
• For Repairs & Renovation: 30%

Processing fee:

0.228%% of loan amount with a max of Rs.20292/-

Repayment

• Loans for purchase / construction of House / Flat: Max. 15 years (including holiday period)
• Maximum Holiday Period of 18 months allowed for Home Loans for the purpose of construction of House / Flat. The repayment may be made by way of remittance from abroad or from other domestic sources including rental income from the property etc. Repayment of instalment of Home Loan, interest and other charges, if any can be made by close relatives through their bank account directly to the borrower’s loan account.

Prepayment charges: Nil

Security

• Equitable Mortgage of Property purchased / constructed out of loan proceeds.
• Equitable Mortgage to be registered (at Applicant’s cost) if there is a provision for the same in the State where property is located.

CERSAI registration (at Applicant’s cost) to be done

• For Loans up to Rs 5 Lakhs - Rs 50 + ST
• For Loans above Rs 5 Lakhs – Rs 100 + ST

Documents Required

1. Completed Application Form with passport size photograph.

2. Salary Certificate.

3. Proof of other income like rent, interest on investment, if any.

4. Balance Sheet for the past three financial years in the case of Professionals, Businessmen & Self-employed.

5. Income Tax / Wealth Tax (if applicable) Returns for the past 3 years.

6. Agreement of Sale / Sale Deed.

7. Approved Building Plan.

8. Title Deed Documents for 30 years.

9. 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).

10. Passport copy with page containing visa stamping

11. Copy of work permit

12. Employment contract copy (an English translation duly attested by employer/consulate/embassy/our foreign branches, if it is in any other language)

13. Copy of identity card issued by the employer

14. Copy of continuous discharge certificate in respect of applicants employed in merchant navy.

15. Brief write up about employment profile for the last 3 years

16. Brief write up about the company /institution where employed i.e. constitution, activity, employee base, net profit etc.

17. Statement of overseas Bank account for the last six months which reflect salary credit, savings etc

18. Specific irrevocable Power of Attorney, if applicable, duly stamped and notarized / attested by Indian Embassy / consulate and adjudicated in India.

Additional documents for PIOs a photocopy of the PIO card or any of the under noted documents

• Current Passport indicating place of birth in India
• Indian Passport if held earlier
• Parents’ or grandparents’ passport with details therein substantiating his claim of being a PIO

Insurance

Property (offered as security) to be insured at borrower’s cost with Bank clause against fire, flood, earthquake, riot and other risks, which are normally covered by insurance companies.

Indian Bank Home Loan Interest Rate

EMI Payment Methods

Your Indian Bank personal loan can be repaid in following three ways.

Standing Instruction (SI):

If you are an existing account holder with Indian Bank, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the Indian Bank account you specify.

lectronic Clearing Service (ECS):

This mode can be used if you have a non-Indian Bank account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.

Post-Dated Cheques (PDCs):

You can submit post-dated EMI cheques from a non-Indian Bank account at your nearest Indian Bank Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.

How to Apply for Indian Bank Home Loan?

You can either apply online or visit a nearby Indian Bank branch for the application. You can also download the home loan application form from the Indian Bank official website, complete the form and submit it the bank representative.

Alternatively you can also check your eligibility for a home loan through CreditMantri and apply for it.

Summary of Indian Bank Home Loans

This is probably the only bank that provides several home loan products in India. With attractive interest rates, the bank caters to the needs of various sections of people. You can also pre-close the home loan with the prepayment for which no penalty is levied. Overall, the bank offers the best deal on home loans.

Indian Bank Home Loan FAQs

1. What are processing fees on Indian Bank Home Loans?

0.50 % of the amount sanctioned with minimum of Rs.1000 and Maximum of Rs.20000

2. Is there penalty for prepaying the Indian Bank Home Loan?

No penalty is levied for prepaying the Indian Bank Home Loan?

3. Can I get Indian Bank Home Loan without a Guarantor?

Guarantor is required in some cases

4. What is the maximum loan repayment period for Indian Bank home loans?

The maximum repayment period is 30 years

5. How Can I apply for an Indian Bank home loan?

You can either apply online or visit a nearest Indian Bank branch and take the help of the bank’s representative.