Eligibility

Employed individual with confirmed service

Owning a house or flat

Below 55 years of age

If in business, three years of standing in the related field.

Purpose

To furnish home with furniture, kitchen equipment, air conditioner, room coolers, curtains, cots, sink, bath-tubs, show-case, cup-boards, carpets, etc. Repairs / renovation of the apartment and also cost of development of common area of the apartment are also covered.

Loan Amount

The loan amount varies in proportion to the monthly income.

a) 5 times the gross monthly income or Rs. 2.00 lakh whichever is less if third party guarantee is offered.

b) Ten times the gross monthly income or Rs. 10.00 lakh whichever is less if collateral equal to the loan amount is offered.

Margin

The minimum margin is 25% of the cost. Margin money is to be kept as a term deposit till the loan is closed.

Rate of Interest

Retail Credit Interest Rate (Click here)

Repayment the Loan

In equated monthly installments for a maximum period of 6 years. The EMI for this loan and housing loan should not be more than 60% of gross pay.

No Prepayment charges

Security

Hypothecation of the items bought If house was bought through finance from another bank or financial Institution, a no lien letter from the bank /financial institution should be submitted.

Third party guarantee for the loan

Above Rs. 2.00 lakh to Rs. 5.00 lakh

Mortgage of the flat/house which is being furnished.

If the house was bought through finance from IOB, the mortgage should be extended for this loan also, or mortgage of any house/flat with value at least equal to the loan amount. If the house is bought through finance from another bank or financial Institution, a no lien letter from the bank /financial institution should be submitted.

Hypothecation of the items bought.

Documents

An application form

Proof of income (from you and your guarantor)

Copy of title deeds of your house / flat

If you have an existing housing loan, you will have to produce a certificate for the outstanding balance

Estimate/quotation for items you intend to buy

Processing Charges (Click here)

Home Décor Application Form (Click here)