Indian Bank Home Loan, Home Improve Loan and Plot Loan



Whether you are going to buy an apartment, or build your dream house in your existing plot or buy a plot and build a house you eying in a favorite location, Indian Bank has various Home Loan schemes to cater your very special needs of owing or renovating or improving a house. The schemes - IB Home Loan, IB Home Loan Plus, IB Home Improve Loan, IB Plot Loan, IB Home Loan Combo - can be great because Indian Bank think that, first of all, a home must be a lovely place making memories of family, and secondly it becomes an investment for your future.

Indian Bank Home Loan

 

1. Indian Bank Home Loan

 

Purpose of Indian Bank Home Loan

Indian Bank customers can utilize the loan amount for purchasing or constructing a house or flat, purchasing a housing plot, repairing or renovating existing house, extension of construction, takeover of loans etc. The loan to be utilised only for the purpose for which it is applied for or sanctioned.

Eligibility for Indian Bank Home Loan

Salaried class, Businessmen, Professionals and Self Employed people. Residents and NRI people with minimum entry age of 18 years and maximum exit age of 60 years. Relaxations considered on case to case basis at Bank's discretion.

Amount of Indian Bank Home Loan

36 times of Gross monthly income or 60 times of Net Monthly income (NMI) whichever is higher. 40% Net Take home pay (NTHP) or NTHP of Rs. 20,000/- and above after deduction of EMI shall be maintained.

Rate of Interest for Indian Bank Home Loan

As prescribed from time to time – with monthly compounding of interest. Residents can opt for 'Fixed' or 'Variable' rate of interest.

Processing Charges for Indian Bank Home Loan

Processing Charge will be 0.225% of Loan amount with a maximum of Rs. 20,000/- subject to change.

Security for Indian Bank Home Loan

Mortgage of property to be purchased. Registration of MOD wherever applicable. Registration of mortgage with CERSAI – charges to be borne by the applicant.

Other Terms for Availing Indian Bank Home Loan

  1. Disbursement Amount: Directly to the vendor along with margin in case of outright purchase. In case of construction depending upon the stage of construction and margin contributed by the borrower, proportional disbursements will be made.

  2. Margin Money: Loan to Value (LTV) ratio not to exceed 90% for loans upto Rs. 20 lakhs, 80% for loans upto Rs. 75 lakhs and 75% for loans above Rs. 75 lakhs. For Repairs or Renovation 30% margin is necessary.

  3. Legal Verification / Property Valuation: Legal Scrutiny Report (LSR) and Engineer Valuation Report (EVR) to be obtained from our approved Lawyers / Engineers at borrower’s cost. Second LSR & EVR insisted beyond a threshold limit.

  4. Repayment: By way of EMI and to be serviced by 10th of next month. Delay attracts penal charges. No Pre-payment or Foreclosure charges.

  5. Insurance: Property to be insured at borrower's cost with Bank clause. Optional Life insurance cover for Borrowers under Group Mortgage Assurance Scheme to cover the Loan.

  6. Surety / Guarantor: Spouse should be included as guarantor / co-applicant if income of spouse is included for arriving at eligible loan amount.

Document List for Availing Indian Bank Home Loan

1. Common to Every Application

  1. Filled in application in the Indian Bank Home Loan Application form.
  2. Photos of Applicant(s) and Guarantor(s).
  3. Account number & CIF number - if applicants / guarantors are existing customers of the bank (copy of passbook details).
  4. Assets & Liabilities Statement in bank's format to be submitted by Applicant & Co-Applicant as well as the Guarantor.

2. KYC Documents (For Applicants / Co-Applicant / Guarantors)

  1. PAN Card Copy
  2. Proof of Address (Telephone Bill / Voter ID / Driving license etc.)
  3. Proof of Identity (with photo evidence) (Aadhaar Card, Passport, Voter ID, PAN card, Driving License, Govt. / Defense ID card etc.)

3. Property Documents

  1. Original document of title to the property.
  2. Prior documents (parent documents) for 13 years if originals are available for perusal. Otherwise, certified copies of documents of title deeds for a minimum period of 30 years.
  3. Patta / Possession Certificate / Location Certificate with sketch as the case may be in respect of the subject property.
  4. EC for last13 years.
  5. Latest Tax paid Receipts wherever applicable.
  6. Original Sale Agreement.
  7. Approved Building Plan duly endorsed by the Panel valuer and planning permit duly signed by the competent authority.
  8. Registered / adjudicated power of Attorney as per approved format if documents are to be executed by PA Holder.
  9. In case of purchase of Flats from Developers, Agreement of Sale of Undivided share of land (if registered, then registered sale deed), Construction agreement in case of Flats under construction, Copy of the agreement between the builder / developer and purchaser / applicant, NOC from the financing Bank for release of their charge on the Flat, Tripartite agreement between the Builder / Bank / applicant wherever necessary.
  10. In case of construction of house/ Repairs and Renovation, Estimation duly approved by Panel Engineer.
  11. In case of Plot loan, copy of approved lay out of the plots (duly approved by the competent authority.
  12. For sites allotted by statutory authorities like TNHB, DDA, HUDA, NOIDA, Societies etc., allotment letter issued by them, Approved plan & License / blueprint and commencement certificate. Latest land / building tax paid receipt, Estimation from Bank's approved valuer, Absolute deed and or conditional sale / auction sale / lease-cum-sale deed by the statutory body / society, Layout Plan copy, EC for last 13 years, Possession Certificate issued by Statutory Body / Society and NOC from the Statutory body/Society to mortgage the property in our favour.

4. Employment Documents and Income Proofs (For Salaried Class Applicant(s))

  1. Copy of Employee's ID issued by Employer.
  2. Latest Six month's Salary Slip / Salary Certificate.
  3. Latest 6 month's Statement of Bank Account where salary is credited.
  4. Form 16 / IT Returns / ITAO for the last three years.
  5. Previous and Present employment details with proof covering a period of last 3 years.
  6. If employed in a Private Concern, Profile of the Employer to ascertain the Standing / Status of the Company.
  7. Proof of other income, if any (like Rent, Interest on Investments etc.).

5. Business Documents and Income Proofs (For Applicants under Business or Professional or Self Employed Category)

  1. Latest six month's Statement of Bank account
  2. Proof of other income, if any, like Rent and Interest on Investment.
  3. IT Return / ITAO for the last three years.
  4. Copies of full set of Audited Balance Sheet including P&L account – for the last three years.
  5. Proof of Business (VAT / GST Registration Copy etc.).
  6. Profile / Write-up on the business / Professional activities carried on.
  7. PAN Card copy – of the business unit (Wherever applicable).

6. Documents For Non Resident Indian (NRI) or Person of Indian Origin (PIO)

  1. Copies of Passport / Visa.
  2. Work Permit / Job Contract / Appointment Order.
  3. Power of Attorney as per Bank's format and duly executed in the presence of the officials of the Embassy and adjudicated in India.
  4. Latest Six months' salary certificates with deductions / ITR for three years.
  5. Statement of Latest 6 month's Statement of Bank Account where salary is credited.
  6. Proof of margin money from NRE / NRO account.
  7. Declaration that the House / Flat shall be used for own use on return from abroad and proposed period of stay in abroad to be submitted.

7. Documents Required In Case of Takeover

  1. Copy of original sanction letter, Additional sanction ticket if any, (including top up loans).
  2. Latest Balance outstanding letter from the erstwhile lending institution.
  3. Confirmation from the lending institution that the account is a Standard asset and the balance outstanding as on date, charges if any, and their willingness to handover the documents to Bank if the amount is paid in full along with list of documents held with the erstwhile Bank.
  4. Latest property tax and other statutory tax paid receipts.
  5. Statement of Home Loan account from the date of availment.
  6. The property should have been constructed as per the approved plan without deviations.
  7. Copy of the property title deeds , latest tax paid receipt, Khatha extract and certificate and upto date Encumbrance Certificate (Minimum 13 years).

Note: The above checklist is only indicative and the Bank may insist for production of any other document relating to property for verifying the title or for creation of valid mortgage. The applicants have to submit self attested copies of the document wherever copies are submitted. No laminated documents are accepted as proof of title / for creating mortgage. Details of guarantor/s to be furnished wherever necessary.


 

2. Indian Bank Home Loan Plus

The Purpose / Objective of IB's Home Loan Plus could be used for any bonafide purpose other than speculative purpose. All existing Home Loan customers who have repaid a minimum of 12 instalments of EMI regularly are eligible for Home Loan Plus. NRI and Staff Members of Indian Bank including retired staff members may also be considered by the sanctioning authority. Eligible customers should have 40% Take Home Pay on gross income after the proposed EMI.

Amount of Loan

Minimum amount – Rs. 1,00,000/- and maximum amount – Rs. 20,00,000/-.

Margin

LTV Ratio of 90% or 80% as the case may be to be maintained for home loan outstanding and 30% margin on the residual value of the House Property to be maintained for the top up loan.

Processing Charge

1.178% on loan amount.

Interest Rates

Refer to the Bank's Website.

Repayment Period

120 months.

Prepayment charges

NIL.

Security

Extension of EM on the house property. Registration of extension of EM wherever it is mandatory.

Documents to be submitted for processing the application

  1. Request letter.
  2. Up to date EC and tax paid receipt from the competent authority.
  3. Valuation Report from Panel Engineer.
  4. Letter of authorization for recovery of EMI.

Other Requirements/Details

The House property should be revalued before considering the proposal. The House Property can be either self occupied or let out. The residual life of the building / flat should be minimum of 10 years more than the repayment period of the loan.


 

3. Indian Bank Home Improve Loan

The purpose / objective of IB's Home Improvement Loan could be for purchasing of household furniture, kitchen racks, cupboards, TV sets, Fridge, Computers, Wall paper provisions, lighting, interior decorations, Air-Conditioners, Kitchen Chimney, modern gadgets for kitchen / modular kitchen & piped gas supply / cost of digging of bore well with suitable water lifting devices like jet pump set, compressor, solar system and immersible pump set.

Eligibility

Existing Home Loan borrowers (both residents & non-residents) / Prospective Home Loan borrowers

Amount of Loan

  1. 36 times of Gross Monthly Income subject to a maximum of Rs. 10 lakhs.
  2. Spouse Income can be included for calculating eligible amount if he / she is in Government / Public Sector organization / reputed private sector.
  3. Take home Income should be more than 40% of gross income, with a minimum of Rs. 6,000/- as net monthly income, after recovery of proposed EMI.

Margin

15% of cost of the articles to be purchased under the loan.

Processing Charge

1.178% on loan amount

Interest Rates

Refer to the Bank's Website.

Repayment

No Holiday period.

Maximum repayment period allowed:

  1. For TV, Computer & other electronic items with less life span: 48 months
  2. For others: 60 months

Prepayment charges

NIL

Security

  • Extension of Equitable Mortgage of Property mortgaged for Home Loan/EM of property for which the facility is availed.
  • Equitable Mortgage to be registered (at Applicant's cost) if there is a provision for the same in the State where property is located.

Documents to be submitted for processing the application

As detailed in Home Loan / NRI Home Loan product. In addition to this Quotation for articles to be purchased is also to be submitted.

Insurance

  • Household articles offered as security to be insured at borrower's cost with Bank clause against fire, flood, earthquake, riot and other risks, which are normally covered by insurance companies.
  • Property (offered as security) to be insured at borrower's cost with Bank clause against fire, flood, earthquake, riot and other risks, which are normally covered by insurance companies.

 


 

4. Indian Bank Plot Loan

The purpose / objective of IB's Home Improvement Loan could be for purchase of House Site on ownership basis; House site should be located in layout which is approved by Competent Authority.

Eligibility for Plot Loan

Minimum entry age is 18 years and maximum exit age is 60 years.

Amount of Plot Loan

36 times of Gross Monthly Income; The cap on Plot Loan per borrower has been fixed as under:

  1. For purchase of property in Rural area: Rs. 50.00 lakhs
  2. For purchase of property in Semi-urban area: Rs. 1.00 crore
  3. For purchase of property in Urban area: Rs. 2.00 crores
  4. For purchase of property in Metro: Rs. 3.00 crores.

Margin Money

25% on Land cost

Processing Charges

1.178% on loan amount

Interest Rates

Refer to the Bank's Website. Waiver of the additional interest is permitted in respect of the following:

  1. On availment of Home Loan for construction from Indian Bank. (OR) On completion of construction of the house from own sources based on request made by the customer and duly evidenced by engineer’s certificate. After carrying out actual visit by bank's official, the additional interest shall be waived by the sanctioning authority.
  2. Construction of house has to commence within 2 years from the date of availing the loan / from the date of handing over possession by the Government Housing Development Agency, as the case may be, otherwise higher Rate of Interest will be charged for the delayed period.

Repayment

Maximum 180 EMI (No Holiday Period)

Prepayment charges

NIL

Security

Equitable Mortgage of Property purchased out of loan proceeds. Equitable Mortgage to be registered (at Applicant's cost) if there is a provision for the same in the State where property is located.

Documents Required for Plot Loan

As detailed in Home Loan product. All the applicable / relevant documentary evidences are to be submitted.

 


 

5. Indian Bank Home Loan Combo

The purpose / objective of IB's Home Loan Combo could be Benefitted under the package the borrower is entitled for any one or more of the following loans, with concessional interest rate and processing charges provided he / she is otherwise eligible as per the individual loan products:

  1. IB Vehicle Loan (Both 4 wheeler and 2 wheeler).
  2. IB Clean Loan (to Salaried Class).
  3. IB Bhavishya Prakash (for one of the dependants of the borrower)
  4. IB Pension Loan.
  5. IB Home Improve.

Eligibility

  1. Individuals including Joint borrowers who have availed the Home Loan from Indian Bank.
  2. Satisfactorily serviced the Home Loan for at least 3 years after the Holiday Period.
  3. Created Equitable Mortgage
  4. Maintained security margin of as per the original terms of sanction for purchase of House / plot / construction of house.
  5. Home Loan account repayments are regular and the account is in Standard Category.

Interest Rates

Concession of 0.50% from the applicable Card Rate for the following loan products:

  1. IB Vehicle Loan (Both 4 wheeler and 2 wheeler).
  2. IB Clean Loan (to Salaried Class)
  3. IB Bhavishya Prakash (for one of the dependants of the borrower)
  4. IB Pension Loan No interest rate concession for IB Home improve (subject to minimum of BR or MCLR 1 year i.e., no concession below BR or MCLR 1 year).

Processing Charges

Concession of 50 % from the applicable processing charges of the following loan products:

  1. IB Vehicle Loan (Both 4 wheeler and 2 wheeler).
  2. IB Clean Loan (to Salaried Class).
  3. IB Bhavishya Prakash (for one of the dependants of the borrower).
  4. IB Pension Loan.
  5. IB Home Improve.

Security

  1. The security prescribed for the individual loan products are to be offered.
  2. Equitable Mortgage taken for the Home Loan should be extended to cover the other loan(s) sanctioned under the package.

Other Requirements / Details

  1. All other terms and conditions laid down as per the individual loan products should be complied with.
  2. The Home Loan borrowers can avail any one or more of the above products subject to fulfilling repayment capacity for servicing existing loan liability(ies) and the proposed loan liability(ies).

Download Forms

  1. Indian Bank Home Loan Application Form
  2. Indian Bank Home Loan Builder form
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