A Loan Against Property from Indian Overseas Bank to meet your financial needs
A low-interest mortgage loan to consolidate your debts
Indian Overseas Bank Loan Against Property
This loan helps borrowers get access to funds by pledging their property to the bank to meet their urgent financial needs such as wedding expenses, foreign travel expenses, medical exigencies, higher education and so on. This loan can also be repurposed into a consolidation loan to pay off high-interest debts.
Features of IOB Loan Against Property (Mortgage Loan)
Why this Loan?
- The Indian Overseas Bank Loan Against Property is meant for borrowers who want to avail financial assistance by mortgaging their property to the bank to meet their urgent financial needs other than for capital market, trading or speculative purposes
- Being a secured loan, borrowers can avail this scheme as a consolidation loan and pay off their high-interest credit card debts and loans, thereby consolidating their debts
- There are no pre-payment charges for this loan
Loan Amount
- The maximum loan amount offered under this loan scheme is up to Rs. 2 crore
Interest
- Repayment Period up to Rs. 1 crore: The interest rate applicable to this loan is defined as the sum of two factors: one-year Marginal Cost of Funds based Lending Rate (MCLR) and a Spread factor of 2.20%. As of October 2020, the MCLR of IOB is 7.50% bringing the effective interest rate at 9.70%
- Repayment Period Above Rs. 1 crore: The interest rate applicable to this loan is defined as the sum of two factors: one-year Marginal Cost of Funds based Lending Rate (MCLR) and a Spread factor of 2.70%. As of October 2020, the MCLR of IOB is 7.50% bringing the effective interest rate at 10.20%
Repayment
- This loan must be repaid within 7 years. The bank does not offer a repayment holiday (moratorium) for this loan which means that the repayment of loan starts the next month from the loan disbursement
Security Needed
- The bank asks for the first charge of equitable mortgage of property pledged for this loan
Margin Money (Borrowers Contribution to Total Cost)
- The bank charges up to 50% of the realisable sale value of the immovable property offered as security
Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest. So, if the total amount needed is Rs. 20 lakh, a 20% margin means you will have to contribute Rs. 4 lakh. The bank will provide the balance of Rs. 16 lakh.
Processing Charges
- The bank charges 0.50% of the loan amount for processing this loan
Documents Needed for Individuals (Salaried and Self-employed)
- Loan Application Form duly filled and signed by the applicant and co-applicant, if any
- Two Passport Size Photographs of applicant and co-applicant
- Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
- Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
- Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Income/Banking Proof for Salaried Professionals: Last 3 months’ salary slip, Form 16 or income tax returns
- Income/Banking Proof for Self-employed Professionals/Non Professionals: Computation of income of last 2 years, Balance Sheet, Profit and Loss Account, Registration Certificate, GST Return, Income Tax Challan / Form 26AS / TDS Certificate, IT Assessment, etc.
- Property related documents
Reference Facts
- Indian Overseas Bank Website: www.iob.in and www.iobnet.co.in (net banking)
- Headquarters: Chennai, Tamil Nadu
- Call Centre Toll-Free Number: 1800 425 444