- Loan from OBC offers overdraft facility against immovable property that can be used for financing personal expenses or to invest in a business, etc.
- Loan applicants who are salaried employees are eligible for the Oriental Mortgage Loan Scheme wherein they may avail of a term loan that they may repay within a maximum timeframe of 84 months. Salaried applicants get access to an overdraft facility, which is renewed, on an annual basis. Salaried employees who will get pension there is a 15% progressively reducing limit of the original sanctioned limit that will start once the applicant reaches 63 years old. For non-pensioners, the reduction will start 7 years before superannuation.
- Business entities that apply for an Oriental Mortgage Loan Scheme can get a term loan with a repayment period of 84 months. They may also get the Overdraft facility with a repayment period of 84 months that will be subjected to a yearly review and a progressively reducing limit at 15% so that the facility is liquidated within seven years. Business entities are eligible for one more facility that is a combo offer of a term loan plus overdraft facility. In this sixty percent of the loan will be in the form of the term loan that is to be repaid in 84 months, while the balance forty percent is in the form of an Overdraft that is non-reducing and that is renewed on a yearly basis.
- OBC charges rates of interest that are competitive as per industry standards. If there is any irregularity for any reason, the interest rate will be increased by 2%. OBC charges a floating rate of interest at 11.95%.
- The maximum amount that can be availed through this loan is Rs. 5 crores.
- As a form of security, Oriental Bank of Commerce accepts the mortgage of residential, or commercial or industrial property that should be in the name of the loan applicant along with his or her close relatives, such as the applicants’ spouse, children, parents, or joint owners of the property, or a company or firm.
- For the Oriental Mortgage Scheme, it is mandatory for the applicant to provide a co-applicant or guarantor.
- The Oriental Mortgage Loan Scheme has a maximum payable age of 75 years (of the guarantor). This means that the loan needs to be repaid before the guarantor turns 75 years old.
- Oriental Bank of Commerce asks for the basic KYC documents that are normally asked by banks, this documentation will include the loan applicant’s Form 16 or Income Tax Returns for the previous two years. The applicant is informed at the outset about the documents that he or she will have to provide by OBC personnel so that there are no delays in the loan application process.
OBC Loan against Property Eligibility Criteria
- Individuals/joint borrowers who are salaried employees or who may be self-employed and professionals may apply for this loan, provided they have proof of previous two years Income Tax Returns
- Individuals who are engaged in agriculture and its allied activities may apply for this loan
- Any company or firm may apply for this loan jointly with their directors or partners, provided the security is owned by the director or partner or by the company or firm itself. The income that is generated by the company will also be considered by the bank before approving or rejecting the application.
- How Oriental Bank of Commerce asses the loan limit of its Oriental Mortgage Loan Scheme
Oriental Bank of Commerce will set the loan limit on the basis of the following points-
- The loan limit for salaried applicants will be set by computing the applicant’s gross income for 36 months
- Non-salaried applicants who earn an income will have their loan limit set as per four times their average net yearly income for the previous two to three years
- Fifty percent of the realizable value of the applicants’ property will be considered.
- OBC will consider the above points taking into consideration the repayment capacity of the loan applicant
- The loan applicants’ net take home should not be less than 30% of his or her gross income after deducting tax and the EMI of the loan (term loan) or the monthly servicing of principal and interest (Overdraft facility).
- Documents required for the Oriental Mortgage Loan Scheme
- Passport size photographs of the loan applicant, co-applicant and guarantor
- Proof of Residence that may be in the form of a copy of the Ration Card, Telephone Bill, Passport, Electricity Bill or Voters ID Card
- Proof of Identity that can be in the form of a copy of a Passport, Voter’s ID Card, Driver’s License, PAN Card or Employer’s Card
- Income Proof in the form of the Income Tax Returns or Form 16 of the past two to three years
- Copy of all the applicable papers of the property that the applicant is pledging as collateral.
- Charges applicable to the Oriental Mortgage Loan Scheme
0.50% of the Loan amount plus Service Tax, if any (This is a onetime charge)
0.10% of the loan amount plus Service Tax, if any (Recurring charge). This fee is charged at the time of the renewal of the Overdraft Limit.
Loan amount up to Rs. 2 lakh
Loan amount over Rs. 2 lakh to 10 lakh
Loan amount over Rs. 10 lakh to Rs. 25 lakh
Loan amount over Rs. 25 lakh to 50 lakh
Loan amount over Rs. 50 lakh to 100 lakh
Loan amount over Rs. 100 lakh