Indian Overseas Bank Home Loans Rates

People always look for affordable home loan rates when they compare home loan products offered by various banks and financial institutions. Indian Overseas Bank is one bank that offers home loan products at truly affordable rates and terms. If you’re thinking about a truly cheap home loan product from any bank or financial institution to purchase your dream home, you should take Indian Overseas Bank home loan rates into consideration.

About Indian Overseas Bank home loans rates

If you’re looking for one of the most competitive rates in the Indian home loan market, Indian Overseas Bank may be the right place for you. Indian Overseas Bank home loan rates are one of the most affordable rates that are available in the housing finance market. You can use an Indian Overseas Bank home loan for purposes like purchase/maintenance/construction/refurbishment of a house.

The tables given below will give you a better idea about Indian Overseas Bank home loans rates:

Floating rates (on the basis of Benchmark Prime Lending Rate) w.e.f. 1/7/2009

	Interest rates % p.a.
Repayment	Up to 5 years	Over 5 to 10 years	Over 10 to 20 yrs
Loan Amount
Up to Rs.30 lakhs	8.25	8.50	8.75
More than Rs.30 lakhs	9.75	10.25	10.25

Fixed rate effective from 1/7/2009

	Interest rates % p.a.
Repayment	Up to 5 years	More than 5 to 10 years
Loan Amount
Up to Rs.30 lakhs	9.00	9.50
Above Rs.30 lakhs	11.50	12.00

It is worth mentioning that 0.25% interest rate cut is permissible for loans up

to Rs. 30 lakhs, for which the margin provided is 25% and above. A discount of 0.50% on interest is permitted for loans over Rs. 30 lakhs, where the margin provided is 25% and above.

Security for Indian Overseas Bank home loans

• First mortgage on the property to be purchased, constructed or refurbished
• The land must be in the name of loan applicant or together with spouse who has to be a co-obligant
• Title over the property should be clean and sellable
• There should be all-inclusive insurance coverage on the property for sufficient value
• Supplementary security as LIC, NSC and UTI units will be satisfactory

Processing fees on Indian Overseas Bank home loans

Processing fees will be imposed @1.50% of the loan amount subject to a maximum of Rs.30,000. However, the processing fee is liable to vary periodically without prior notice.

Necessary Documents

Listed below are the important documents that you need to furnish while applying for an Indian Overseas Bank home loan:

• Salary/pay certificate as income proof (for salaried people)
• Duly completed application form
• Contract for sale of flat/house
• Income proof (for businessmen and professionals)
• Experience proof in the area of operations (for businessmen and professionals.)
• Membership proof (for co-operative societies)
• Projected costs for Construction/Appraisal Report for Purchase/Legal point of view regarding the property from an attorney/engineer who is authorized by Indian Overseas Bank