Oriental Bank of Commerce Home Loan

• Purchase of plot/land and house construction thereon
• House Construction, where in the plot/land has been already owned by the applicant
• Purchase of built/semi built up house or flat
• To repair/improve or extend the existing house or flat
• For Home furnishing purposes
• To buy under construction flat
• Home Loan balance transfer from another bank

• The OBC Housing Loan may be availed by businesspersons or self-employed professionals who can show a minimum of three years in their field of business or activity. Applicants who are salaried employees should have a regular and permanent job with a reputed company for at least two to three years. Groups of individuals, including a Hindu Undivided Family (HUF) may avail this loan. This loan is available to Non–Resident Indians(NRIs) and to farmers as well.
• The Oriental Bank of Commerce calculates the maximum possible amount that it may disburse as housing loan to the loan applicant, on the basis of the income earned by the loan applicant as an individual or the income earned by the loan applicants when applied for jointly with one or more people.
• Special rates of interest are given to existing customers of Oriental Bank of Commerce so that they may prefer to avail a home loan from OBC, rather than go to another bank. Similarly, an applicant who is currently a home loan borrower or certain employees of OBC, receive concessions on the rates of interest when they apply for a new home loan from the Oriental Bank of Commerce.
• Borrowers of the Oriental Bank of Commerce Housing Loan have maximum repayment tenure of 480 months or 40 years; this is inclusive of the holiday period or moratorium period during which the borrower does not have to pay any EMI. It is usually in the borrowers’ interest to opt for longer repayment tenure as it will correspond with a lower EMI (Equated Monthly Instalment). However, if the borrower has the financial stability and freedom to pay off his or her loan at a quicker pace with shorter repayment tenure, OBC will not dissuade the borrower from doing so. The shorter repayment tenure will correspond to a higher EMI, but if the borrower is comfortable with it, there is no problem.
• The Oriental Bank of Commerce Housing Loan offers a holiday period or moratorium period of 18 months from the date of loan disbursal.
• Loan applicants may mortgage the property that they are looking to buy or construct to provide a form of security for the Oriental Bank of Commerce. The plot of land should therefore, be in the applicants’ name or held jointly with the applicants’ spouse or parents. The loan applicant will need to have a clearly marketable title over the said property.

This subcategory of the OBC Home Loan Scheme is for those customers who want to renovate or repair their existing home.

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.

Purpose of Home Furnishing Loan:

• For purchase of consumer durables items, kitchen equipment and various furnishing items that include Laptops, LEDs, Refrigerators, Air conditioners, room coolers, carpets, etc.
• For any personal use which is not illegal
• For the purchase of life insurance plan under group protection scheme for home loan borrower(s)

The bank also offers agricultural loans for constructing or buying purposes.

Loans for Construction of Form Structure and Farm House and Dwelling Units

These are also agricultural loans which are issued for construction or establishment purposes. The purpose, eligibility & features of the loan are as follows:

Purpose:

• For construction farm structures namely warehouse, farm store, water trough, threshing yard, fencing and cattle, livestock, implement, tractor, and truck sheds.
• For construction of farm house and dwelling unit,

Eligibility:

All farmers having own land with enough income to repay the EMIs and have suitable productive utility of proposed construction.

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 residents and Non Resident Indians may avail this loan; groups of individuals may apply for this loan, including a Hindu Undivided Family.  The loan applicant has to be at least 18 years of age, with a maximum age of 75 years for the salaried individuals and 60 years for non-salaried applicants. Loan applicants need to have a regular and assured source of income via business or salary that is more than the minimum income required.

Factors that Affect the Eligibility of a Person

There are certain factors that have an effect on the eligibility of a person, these are:

• Income of the loan applicant
• Age of the loan applicant
• Loan applicant’s qualifications
• Spouse’s income
• Number of dependents
• Stability and continuity of the loan applicants’ occupation
• Loan applicants’ assets and liabilities

The Oriental Home Loan Scheme is offered at an interest rate of 8.75% onwards.

Oriental Bank of Commerce Home Loan Applicable Charges

The Oriental Bank of Commerce Home Loan has charges 0.50% of the loan amount as the processing charges, to a maximum of Rs. 30000. OBC does not charge anything for pre-payment, upfront fees or documentation fees.

Repayment Period of the Oriental Bank of Commerce Home Loan

Borrowers of the Oriental Bank of Commerce Housing Loan have to repay their loan within 480 months or 40 years, which is inclusive of 18 months that is considered as the moratorium period. The moratorium period is a period of time during which the borrower does not have to pay the loan. In this case, the moratorium period is of 18 months.

Borrowers of the Oriental Bank of Commerce Home Furnishing Loan have to repay their loan within 120 months, or 10 years.

Maximum Loan Amount Available under the Oriental Bank of Commerce Home Loan

The Oriental Bank of Commerce Housing Loan does not have a ceiling limit; however, it is subject to certain conditions. A businessperson may get a loan of a maximum of 40 times his or her Gross Monthly Income. A salaried employee will get this loan at a maximum of 60 times his or her Gross Monthly Income.

The Oriental Bank Home Furnishing Loan may be availed for a maximum amount of Rs. 10 lakhs. This amount is restricted to 30% the value of the existing house.

Margin on the Oriental Bank of Commerce Home Loan

For the Oriental Bank of Commerce Housing Loan:

Interest Switch over Option

Oriental Bank of Commerce gives its customers/borrowers the freedom to switch over to a prevailing rate of interest if he or she is of the opinion that the prevailing or current interest rate is more favourable to them.

Security Accepted by Oriental Bank of Commerce for its Home Loan

Oriental Bank of Commerce accepts equitable/registered mortgage of the financed property or property that is to be furnished. Oriental Bank of Commerce does not ask for any collateral for its home loan.

Loan applicants have to provide the following to apply for the Oriental Bank of Commerce Housing Loan:

• An application form-cum-process note
• Proof of identity should be furnished in the form of a passport, or PAN Card or driving license or Voter’s ID Card
• Salaried applicants have to provide their salary certificate as proof of income
• Businesspersons and self-employed professionals may provide their profit and loss statement, etc. as proof of income
• Applicants have to show the agreement for the sale of flat/house that they wish to buy and proof of membership (for co-operative societies)
• Businesspersons and self –employed professionals should show proof of existence in the line of business or activity
• Applicants have to provide their previous six months bank account statement
• Applicants have to provide a Title Clearance report from a bank-approved advocate as well as a valuation report from a bank-approved engineer or architect
• Two passport sized photographs of the loan applicant/s
• If it is a case of a bank take-over, the applicant will have to provide a copy of the home loan account statement and a certificate from the lending institution mentioning the pre-closure amount
• Except for the passport-sized photographs, the loan applicant will have to provide the above documents in original and in self-attested copies for the purpose of verification for the Oriental Bank of Commerce.

Oriental Bank of Commerce provides special rates of interest on its home loans for existing customers of its banking services. Furthermore, those who already have a loan from the bank and certain groups of employees also enjoy special rates of interest on its home loan. However, if you want to check and compare from numerous loan options, you can simply visit paisabazaar.com and apply for any available loan as per your requirements.