|IndusInd Bank Home Loan Highlights 2023|
|Interest Rate||Based on the external benchmark lending rate (as per RBI’s guidelines)|
|Loan Tenure||Up to 30 years|
|Loan to value ratio||· For loans of up to Rs 30 lakh: Up to 90%
· For loans between Rs 30 lakh and Rs 75 lakh: Up to 80%
· For loans above Rs 75 lakh: Up to 75%
|Processing charges (non-refundable)||1% of loan amount or Rs 10,000 whichever is higher, IMD – Rs 2,500|
Note: Interest rates as on 23rd October 2023
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IndusInd Bank Home Loan Interest Rates
The IndusInd Bank Home Loan interest rates are based on the external benchmark lending rate (as per RBI’s guidelines). Although the bank has not disclosed the interest rates for its home loan schemes, lenders usually set their home loan interest rates on the basis of their loan applicants’ monthly income, credit scores, repayment capacity, job profile, employer’s profile, etc.
Compare Interest Rates on Home Loans for Top Banks & HFCs
|Name of Lender||Up to Rs. 30 Lakh||Above Rs. 30 Lakh to Rs. 75 Lakh||Above Rs. 75 Lakh|
|SBI||8.40% - 10.15% p.a.||8.40% - 10.05% p.a.||8.40% - 10.05% p.a.|
|HDFC Bank Limited||8.35% p.a. onwards||8.35% p.a. onwards||8.35% p.a. onwards|
|LIC Housing Finance||8.40% – 10.35% p.a.||8.40% – 10.55% p.a.||8.40% – 10.75% p.a.|
|ICICI Bank||8.75% p.a. onwards||8.75% p.a. onwards||8.75% p.a. onwards
|Kotak Mahindra Bank||8.70% p.a. onwards||8.70% p.a. onwards||8.70% p.a. onwards|
|PNB Housing Finance||8.50% - 14.50% p.a.||8.50% - 14.50% p.a.||8.50%-11.45% p.a.|
|Punjab National Bank||8.45%-10.25% p.a.||8.40%-10.15% p.a.||8.40%-10.15% p.a.|
|Bank of Baroda||8.40% - 10.65% p.a.||8.40% - 10.65% p.a.||8.40% - 10.90% p.a.
|Union Bank of India||8.40% – 10.80% p.a.||8.40% – 10.95% p.a.||8.40% – 10.95% p.a.|
|IDFC First Bank||8.75% p.a. onwards||8.75% p.a. onwards||8.75% p.a. onwards|
|L&T Finance Limited||8.60% p.a. onwards||8.60% p.a. onwards||8.60% p.a. onwards|
|Bajaj Housing Finance||8.50% p.a. onwards||8.50% p.a. onwards||8.50% p.a. onwards|
|Tata Capital Housing Finance||8.70% p.a. onwards||8.70% p.a. onwards||8.70% p.a. onwards|
|Federal Bank||8.80% p.a. onwards||8.80% p.a. onwards||8.80% p.a. onwards|
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Fees and Charges for IndusInd Bank Home Loan
|Processing charges (non-refundable)||1% of loan amount or Rs 10,000 whichever is higher, IMD – Rs 2,500|
|Foreclosure/part prepayment charges||Nil (for floating rate home loans)|
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Other Charges related to IndusInd Bank Home Loans
|Late payment charges||2% per month on overdue amount|
|Bounce charges (Cheque/ ECS/SI/ACH etc.)||Rs 750 per instance|
|Non-refundable stamping charges||As per the applicable state laws|
|Swapping charges (Cheque/SI/ECS/ACH etc.)||Rs 500 per swap per instance|
|Duplicate repayment schedule charges||Nil|
|List of Documents||Nil|
|Document copy charges||Rs 500 (for providing property documents’ copy)|
|Collection charges (Local as per municipal or city limits)||Nil|
|Repricing Charges||Up to 0.5% of principal outstanding (subject to minimum of Rs 5,000)|
|Swap of collateral or property||Nil|
|Rebooking of loans (due to change in property/collateral, change in borrowing structure) within 6 months||Nil|
|Loan Cancellation Charges||Rs 2,000 (additional franking or stamping norms as per actuals)|
|Non-compliance charges||1% incremental pricing over and above the existing spread (plus taxes & any other statutory dues)|
|Legal, repossession or incidental charges||At actuals|
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IndusInd Bank Home Loan Eligibility Criteria
The home loan eligibility criteria for loan applicants availing IndusInd Bank are mentioned below:
- Both resident Indians and NRIs are eligible for availing IndusInd Bank Home Loans.
- Salaried individuals aged between 24 to 60 years and working in government or reputed companies with work experience of at least 3 years can avail home loans from IndusInd Bank.
- Self-employed professionals including doctors, engineers, CA or CS aged between 24 to 70 years with minimum 3 years of experience are eligible for availing IndusInd Bank Home Loans.
- Self-employed non-professionals, aged between 24 and 65 years, who have filed their ITR and have minimum experience of 3 years can avail IndusInd Bank Home Loans.
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Documents required for IndusInd Bank Home Loan
The list of documents required for availing home loans from IndusInd Bank are as follows:
- PAN or Form 60: Copy of PAN Card (mandatory if the loan applicant’s income is considered) or Form 60 (if PAN card is not available)
- Identity proof (any one, if PAN not available): Passport (mandatory for NRI home loan applicants along with valid VISA), Driving License, Voter ID, Aadhaar Card, job card issued by NREGA
- Residence address proof (any one): Driving License, Passport, Aadhaar Card, Voter ID, Job Card issued by NREGA
- Age proof (any one): PAN Card, Driving License, Passport, Aadhaar Card (if the complete date of birth is mentioned in the card), Voter ID, Birth Certificate or School Leaving Certificate (10th), Life insurance policy
- Proof of office address for self-employed (any one): Utility bill (piped gas, water, post-paid mobile phone, electricity, landline, telephone) less than 2 months old, GST registration certificate, shops & establishment certificate, title documents of shop or business premises, any other govt. / authority issued license or equivalent document, Rental Agreement / Lease Deed along with utility bill in the name of landlord less than 2 months old (for rented premises)
- Income Documents:
- Last 3 months’ salary slip, salary certificate or contract on company’s letterhead and signed by authorized signatory
- Last 2 years Form 16/16A (Form 16 can be waived if eligibility is met through the salary mentioned on salary slip without including bonus)
- Last 3 month bank account statements where salary is credited
- ITR of individual and business along with audited financials of last 2 years
- Last 6 month bank statements for business/operating account of firm/company and loan applicants’ saving/current account
- Existing track record of loan repayment:
- Bank statement reflecting last 6 months EMI clearance of existing loans (12 months for balance transfer loan)
- Sanction letters or loan account statements
- Signature Verification Proof (any one): Passport, Cheque for login fee from salary account, verification of banker’s signature, PAN Card (e-filed PAN Cards not accepted as signature proof)
- Additional Documents (for non-individual entity):
- Certificate of Incorporation (COI), Certificate of Commencement (COC), Memorandum of Association (MOA) & Article of Association (AOA)
- Partnership Deed
- Trust Deed
- Property Documents (if identified)
- Sale agreement
- Construction / Renovation estimate for purchase plus construction/self-construction/Home extension/Home Improvement cases
- List of documents (LOD) for home loan balance transfer cases
- Processing Fee cheque from salary/main operating account
- Application Form: Duly filled and signed application form, Passport size photograph (latest) of the applicants affixed to application form and self-attested via signature across the photograph
- Loan Agreement and Annexures: Loan agreement as per product type Annexures to be duly filled, signed & stamped as per state law:
- Schedule of loan agreement
- List of Documents (LOD)
- Loan restriction letter (if any)
- Disbursement request letter
- For NRIs – franked GPA document
- Indemnity for under construction cases in plot loans
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Any alteration/correction to be authenticated by applicants
- NACH mandate/SI form and Security Cheques (SPDC): NACH / SI mandate with a signed cancelled cheque with A/C holder’s name as per bank records and 3 undated security PDCs equivalent to EMI amount
- 1 undated cheque with amount kept blank
- 1 cheque towards PEMI amount SPDC favoring “IndusInd Bank A/C Customer Name
- Insurance Details: Life/General insurance application form (if applicable)
- Processing Fee: Cheque for balance processing fee cheque (with clearance details)
- Property documents as per the type of transaction, according to bank’s policy
- For balance transfer from other bank or financial institution:
- Original list of documents from previous financer
- Latest 12 months loan A/C statement with latest outstanding letter
- Existing loan details and 6 months bank statement from where EMI is deducted
- Indenture of guarantee, undertaking of indemnity
- Own contribution receipts and bank statement reflecting the payment of own contribution
- Sanction Letter Duly accepted and signed by all applicants / power of attorney
- Other Documents (to be collected if applicable)
- Letter from customer towards opting for EMI in case of partly disbursed case
- Dual name/dual sign affidavit
- End use letter for home loan top-up cases
Note: IndusInd Bank may ask its loan applicants to submit further home loan documents based on the loan applicant’s credit profile.
1. Can I avail IndusInd Bank Home Loans if I do not have an account with IndusInd Bank?
Ans.IndusInd Bank offers home loans to both their existing and new customers, provided they fulfil the eligibility criteria set by the lender.
2. How long will it take to process my home loan?
Ans.IndusInd Bank claims to process home loan applications within 3 days. However, the overall turnaround time would depend on the time taken for processing loan documents and physical verification of the property.
3. What is the difference between a guarantor and a co-borrower?
Ans.A home loan co-borrower is an individual who avails the loan along with the primary borrower. The co-borrower is equally responsible for EMI payments along with the primary borrower. If the primary borrower fails to repay the loan amount or in case of his death, the responsibility for loan repayment falls on the co-borrower. A loan guarantor is an individual who agrees to repay the loan borrower’s debt if the primary borrowers and his/her co-borrowers, if any, default on loan payments. Note that home loan co-borrower(s) should be a family member of the primary borrower while there is no such restriction on becoming loan guarantors.
4. Can I increase my IndusInd Bank home loan tenure?
Ans.IndusInd Bank has not disclosed whether it offers its existing customers the facility of increasing their loan tenure to reduce the EMI of your home loan. However, many lenders offering home loans allow their existing borrowers to increase the repayment tenure provided they are within the maximum eligible age or retirement age at the time of loan maturity. Any request to increase loan tenure is considered as loan restructuring, which credit bureaus consider as a negative credit event. This leads to credit score reduction for borrowers, thereby negatively impacting the eligibility for availing credit cards or loans in the future.
Existing home loan customers should instead exercise the home loan balance transfer facility to transfer their loan to other lenders at lower interest rates. Doing so will reduce your home loan’s EMI without increasing the interest costs. Additionally, you can select longer tenures for your home loan while exercising home loan balance transfer, provided that your age at the time of loan maturity is within the maximum age limit set by the lender. This should further help reduce your EMI amount.