FAQs on Housing Loans 

1. What is home loan or Housing Loan ?

Home loan is the money borrowed from a bank or a housing finance institution on interest for

• Purchase a new or old(resale) home.
• Construct a new home.
• Renovate or extend an existing home.

Apply for home loan/ Housing Loan online here from IOB.

2. To whom all Indian Overseas Bank extends Housing Loan (HL)?

We extend home loans to individuals who have independent source of income from agriculture, profession, trade, employment, business etc. with hassle free process and without any hidden charges. Housing loans are also being extended to NRIs. 

3. What are the Age Eligibility criteria for applying for housing loan? 

The maximum age for availing for loan is up to 60 years. If the applicant has crossed 55 years, then his/her spouse or other legal heirs will be the co-obligant. However, on selective basis sanctioning authority may relax these maximum age norms.

4. Whether I am eligible for housing loan from IOB if I have crossed the age of 60

Yes, we extend, but on basis of merits, loan is considered (up to 70 years).

5. Why IOB is considered as best option to avail Housing loans in India 

We offer loan for construction / for purchase of houses (New or Old) (Housing Loan Subhagruha) and for renovation of existing housing. Loan will be considered for purchase of plot for construction of house. IOB is having a variety of housing loan schemes to cater to every section of the society. The interest rates offered are very attractive. Click here to apply online

6. If I want to purchase a plot and construct on it whether Housing Loan are extended by IOB?

Yes, for purchase of plot and construction loan will be sanctioned.

7. How much Housing Loan finance amount will be sanctioned for purchase of plot?

Loan will be considered for purchase of plot subject to the loan quantum does not go beyond 30% of the total construction cost in Rural and Semiurban Areas. The House to be constructed in Two years from the date of purchase of plot.

Loan for purchase of plot in Urban and Metro area will be lowest of 60% of the Fair market value of the plot or 60% of purchase price of the plot or 60% of House loan eligibility. The house to be constructed within 3 years from date of purchase of plot.

8. I have already a Housing Loan. whether I can go for another Housing Loan?

Yes. Up to Two housing loan can be availed at Housing loan interest rates. Here also if you have a house in your name or in the name of spouse or in the name of minor children, you are eligible for second HL under IOB Subhagruha Housing Loan

9. What is maximum Housing Loan limit?

There is no maximum loan quantum. However, the quantum of loan is arrived as under after deducting the margin:

The lower of the these will be considered if it is for purchase of new and old house or flat:

Cost of the House/flat mentioned in agreement to sale

Or

Fair market value of the property as per latest valuation report

Also, repayment capacity is seen while financing to arrive at the quantum of the loan and also after taking into account the LTV norms of RBI.

10. What will be my margin for Home Loan?

11. What is LTV ratio?

It is Loan to Value ratio. RBI's the Loan-to-Value (LTV) ratio refers to the maximum proportion of the property's value that a bank can finance through your loan. Applies to home Loans also.

12. Apart from Construction or purchase cost what else bank finances in housing loan?

Stamp duty, Registration fees, documentation charges can be added to the cost of the house where the total cost of the house do not exceed Rs 10 Lakh.

13.  When should I start repaying my home loan?

If the house/flat purchased is second hand, then 3 months holiday period is allowed from the date of disbursement of first instalment of loan.

If the loan is for purchase of plot and construction, then holiday period of 18 months from the date of disbursement of first instalment of loan.

If it is for purchase of flat under construction, then up to 48 months depending on no. of floors in the building, if flat is in building of 7 floors -24 months, if it is in building of 8 to 14 floors - 30 months, if it is in building of 15 to 21 floors- 36 months and above 21 floors 48 months.  

14.  What is the income proof I need to submit for assessing my Home loan?

If you are salaried person, you must be in confirmed service and product income proof of minimum last two years ITR or Minimum six months latest salary slips. Along with salary slip you should produce bank statement which should reflect salary credit for past 12 months.

If your self-employed, businessman then Last two years IT returns and ITR to be filed without any break.

15.  How do you assess my repayment capacity for Housing loan? Or what is the Take Home pay Norms for housing Loan? 

There are categories based on salary your draw and on Take Home pay which will be:

16. What is maximum repayment period Housing Loan?

30 years including holiday period subject your age is not exceeding 70 years.

17. I am in the process of booking a flat. Does IOB provide loans before the flat is booked? Or Can I confirm the housing loan amount before searching for a house to purchase?

We will provide provisional sanction to customers before finalization of the property to enable you to negotiate with your purchaser.

This is called Pre-approved Loan Arrangement letter under our scheme Subhagruha Pre-approved home loan.

This is valid for 3 months and minimum loan amount will be Rs 10 Lakh.

Within 3 months all the papers to be submitted for processing of your loan.

18. Whether IOB is offering housing loans to NRI

Yes, we extend Housing Loan to NRI, holding a valid Indian Passport / PIO holding Indian Passport or Passport of any other country (except Pakistan and Bangladesh) / An Overseas Citizen of India (OCI) holding OCI Card and a Valid Foreign Passport.

The following are the minimum required criteria For NRI/PIO/OCI Housing Loan

• Salaried: Should be having a regular Job abroad in an Indian/Foreign Company/Organization/Govt. Department holding a valid Job Contract/Work Permit for minimum past 2 years.
• Self Employed/Businessman/Professional: Should be in the same Business/Profession/Line of Activity for the past 2 years.
• Minimum Annual Gross Income should be equivalent to Rs. 6 Lakhs Per Annum. Income of Applicant and Co-Applicants can be considered for this criterion.

19. Whether you provide housing loan over and above my eligible limit? Or Is it Possible to reduce the Housing Loan EMI amout?

Yes, we have our scheme called Subhagruha Gen Next Housing Loan.

If you are salaried employee of private sector companies /MNC's/Government Undertaking /PSUs and other Government

If you are between 21 years to 45 years

If your minimum income is Rs 30000/

We provide 20% higher loan amount than that of home loan eligibility with reduced EMI at the beginning without servicing interest upto the holiday period of 36 months. 

20. Whether your bank provides Top up loan on Home Loan and purpose for which I can avail it?

Yes, we have separate scheme called Subhagruha Top-Up for our existing Housing loan customers with Easy Process. The purpose of loan should not be for speculative.

The purpose like home repairs, medical expenses, education, or social commitments will be financed.

However, Loan will be granted after Minimum satisfactory repayment of 12 months of existing housing loan, after completion of holiday period provided possession of the house has been taken.

21. How much top up is allowed with home loan? What is the Maximum Home Loan TOP UP I can get?

Home Loan TOP UP  is done on selective basis and LTV and other criteria of Housing Loan scheme will be applicable. There is a Maximum cap of funding for Home Loan Top up is Rs 200 Lakhs.

It will not be sanctioned if the linked Housing loan is closed.

The maximum permissible tenor of top up loan will be in line with residual tenure of underlying home loan or 15 years, whichever is higher, subject to liquidation of the loan before the borrower attains the age of 70 years.

22. Who is eligible for Housing Loan Top up?

All existing housing loan customers with Minimum satisfactory repayment of 12 months are eligible for Home Loan Top Up.

23. I have a house in my town/village which I have let out as I am staying in another place, whether I can avail another Housing Loan? 

Yes. You are eligible under Housing Loan schemes second house subject other eligibility norms.

24. I have already two housing Loans, can get Housing Loan for third house?

Yes. You can go for third housing loan. We have a scheme called Home Advantage Scheme.

In this scheme, we give loans to Resident Indians, NRI and PIO.

The repayment period given is 360 months including moratorium period.

The borrower must bring a margin of 25%.

The Age limit for Home advantage scheme is :

Minimum: 18 years

Maximum: 60 years (if applicant crosses age of 55 years, spouse, or legal heirs to be added as co-applicant)

25. I want to furnish my house whether Indian Overseas Bank will finance any Housing Loan for furnishing my home?

Yes. We have a special scheme called Home Decor. The finance is to furnish house/flat with drawing room Furniture, Air Conditioner, Kitchen Equipment, Room Coolers, Curtains, Cots, Sinks, Bathtubs, Show case, Cupboard, Carpets etc. We finance Maximum Loan amount of up to Rs. 15 Lakh in Home Decor scheme. For more details click here