Indian Bank is state-owned financial services company that offers banking and financial products to its customer nationwide. Just like other public and private banks in the country, Indian Bank also offers various home loan schemes to its customers at attractive rates of interest. Indian bank home loans can be used for various purposes which are as follows:
- Purchase or construction of new house/ flat
- Purchase existing flat/ house
- To extend existing house/ flat
- Purchase land and construction on thereupon
- Repair or renovate existing house/ flat
Below mentioned are the features, benefits, interest rates and charges offered by Indian Bank:
Indian Bank Home Loan Interest Rate 2020
|Interest Rate||8.75% onwards|
|Age Criteria||Min. 18 years & Max. 70 years|
|Processing Charges||0.23% of loan amount with max. Rs. 20,470|
|Loan Tenure||Up to 30 years|
|Loan Amount||60 times of Gross Monthly Income, Rs. 20,000 as Min. net take home salary|
|Loan Amount – Repair||Max. 10 lakh|
|CERSAI Charges||Max. Rs. 100 plus GST|
Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges
Indian Bank home loan interest rates differ on the basis of their base rate, whether they are floating or fixed, and the Marginal Cost of Funds Based Lending Rate (MCLR).
|Margin||For Loan Amounts|
|Upto Rs. 20 lakh: 10%|
|Above Rs. 20 lakh up to Rs. 75 lakh: 20%|
|Above Rs. 75 lakh: 25%|
|For repairs and renovation: 30%|
Indian Bank offers several home loan schemes specifically for different customer preferences. The schemes also include plot loans.
IB Loan Plus
This loan can be taken for any bona fide purpose, except speculative reasons. It is designed for existing customers who have paid a minimum of 36 EMIs and additionally for staff members including retired staff members of the bank. Applicants must have a 40% take home pay on gross income after the proposed EMI. Applicants can take the loan for a maximum amount of Rs. 10 lakhs under this scheme whereas the minimum limit is Rs. 1 lakh. The maximum repayment period with this scheme is 10 years with 1.178% processing fee and nil prepayment charges. With no pre-payment charges and LTV ratio between 80-90% of the property value.
IB Home Loan Combo
This is a different scheme and is designed for joint borrowers who fall in the specific criteria as per the bank’s policy. Applicants must be joint borrowers who have availed home loan from Indian Bank and agreeably serviced the loan for a minimum of 3 years. Applicants also must have created an equitable mortgage and maintained security margin as per the terms of sanction of the loan. If we talk about the additional benefits of this scheme, there are multiple things to discuss. The borrowers are entitled to avail IB Vehicle Loan (both 4-wheeler and 2-wheeler), IB Clean Loan (for salaried class), IB Bhavishya Prakash (for one of the dependants of the borrower), IB Pension Loan, and IB Home Improve Loan on concessional Indian Bank home loan interest rates. The concession will also be applicable on interest rates & processing charges.
NRI Home Loan
This scheme is for NRI working professionals with regular monthly income. In the case of contract employees, the applicant must have a contract of a minimum of 3 years ahead. The applicant cannot be aged more than 50 years at the time of applying for the loan and the repayment period cannot exceed beyond the time when the applicant reaches 60 years of age. The loan can be granted up to a maximum of 60 times of the applicant’s gross monthly income. For repair and renovation, the loan amount can be up to a maximum of Rs. 10 lakhs. The rule of 40% take home pay on gross monthly income applies on this scheme as well. Other costs with this scheme include processing charges of 0.23% that cannot exceed the limit of Rs. 20,470. Maximum repayment period is 15 years with zero prepayment charges.
Home Improve Loan
This loan is especially meant for upgrading the house. The loan can be taken for household items and luxuries as well as piped gas supply, digging of bore well, water lifting equipment, solar systems, etc. All the prospective and existing home loan customers are eligible for this loan. The maximum amount under this scheme is 36 times the monthly salary of the applicant, subject to a maximum limit of Rs. 5 The income of the spouse can also be included to increase the total income and meet home loan eligibility criteria. The take home pay ratio has to be more than 40% of gross income with a minimum of Rs. 6,000 as net monthly income after the proposed EMI.
The maximum repayment period for this loan is 60 months whereas for electronic items it is only 48 months. The loan comes with processing charges of 1.178% of loan amount and no prepayment charges.
This product is basically for purchasing a house site. The property has to be approved by the competent authorities as well. For this scheme, the applicant has to fall under the age group of 18 years to 60 years. The amount of loan differs as per the location of the property. Loan amount can be availed up to 30 times of the Gross Monthly Income. In rural areas, the amount will not exceed Rs. 50 lakhs, in semi-urban areas, it will not be more than Rs. 1 crores whereas in urban areas, the amount cannot go beyond the limit of Rs. 2 crores. The limit for maximum loan amount is highest in metro cities at Rs. 3 crores. Margin goes upto 25% and processing fee is 1.173% of the loan amount with repayment maximum 180 EMIs and nil prepayment charges.
The scheme also has a provision for Indian Bank home loan interest rate waiver if the applicant is again applying for a land construction loan from the bank. The construction of the house has to begin within 2 years from the date of sanctioning of the loan. If delayed, Indian Bank will levy a higher home loan interest rate for the remaining period.
- Duly filled application form with 3 passport size photographs
- Identity Proof: Passport, PAN Card, Voter’s ID, Driving License
- Residence Proof: Telephone Bill, Voter’s ID, Passport, Electricity Bill, Property papers
- Assets and liability statement
- Business Address Proof for self-employed
- Last 6 months’ salary slips for salaried
- Employment proof for salaried
- Last 6 months’ bank statement
- Last 3 years’ ITR
- Form 16/Income Tax/Wealth Tax
- Agreement of Sale / Sale Deed
- Approved building plan
- Title deed documents for 13/30 years
- Property Tax Receipts
Interested customers can apply for Indian Bank Home loan online with paisabazaar.com. Applicants also have the option to check their loan EMI with the help of online tool offered by paisabazaar.com known as Home Loan EMI Calculator. Applicants just need to adjust the sliders and have to enter just the desired loan amount, loan tenure and interest rate as per your preference. Afterwards they need to fill the loan application form and submit it online.