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Indian Bank Home Loan Interest Rates 2020

Indian Bank Housing Loan Interest Rate

Last Updated 14th Sep 2020

Current Indian Bank Home loan interest rates for Sep 2020 starts at 7.55% p.a. for a maximum tenure of 20 years. Processing fee on its housing loans is Upto 0.23%, Maximum ₹ 20,381. Indian Bank offers a special discount of 0.05% on interest rates for women borrowers.

Loan AmountIndian Bank Repo Rate Home Loan RateRate for Female Borrower
Upto ₹ 30 Lakh7.60%7.55%
₹ 30 Lakh - ₹ 75 Lakh7.70%7.65%
₹ 75 Lakh - ₹ 2 Cr7.85%7.80%
Above ₹ 2 Cr7.85%7.80%

Indian Bank Home Loan Interest Rates

Indian Bank offers various products on home loan. Indian Bank home loan can be used for the purchase of a flat, home construction loan, extension or improvement loan.

Features

  • Indian Bank Home Loan Interest Rate starts from 7.55%.
  • Indian Bank charges a processing fees of Upto 0.23%, Maximum ₹ 20,381.
  • Loan Tenure of Home Loan ranges from 5 years to 20 years.
  • Lowest EMI per lakh on home Loan from Indian Bank is ₹ 809 per lakh offered at the lowest interest rate of 7.55% at the longest loan tenure of 20 years.
  • Indian Bank allows prepayment of home loans with Nil charges on floating rate loans.
  • Indian Bank has an average customer rating of 3/5.0 from customers who have taken a home loan from the bank.

Indian Bank Home Loan Rate

Current Indian Bank home loan interest rates are in the range of 7.55% to 7.85%, with special discounted rates for specific categories of borrowers such as women borrowers for whom the bank offers the lowest interest rate of 7.55%. The table below gives the interest rates on various housing finance schemes of Indian Bank.

Indian Bank Home Loan Scheme Interest Rates
Indian Bank Repo Rate Home Loan7.55% - 7.85%

Indian Bank Bank Home Loan Charges

Indian Bank Home Loan Processing Fee

Indian Bank home loan processing charges are upto 0.23% of the loan amount from its home loan customers to cover its expenses of conducting credit appraisal and technical evaluation of property. The bank charges the maximum processing fees at ₹ 20,381. The processing fees is typically non-refundable and has to be paid at the time of loan application. In addition to Indian Bank housing loan processing fees, the bank also charges certain technical and legal charges which are explained to the customer during the loan process and are payable once the loan application proceeds further.

Indian Bank Home Loan Prepayment

Indian Bank charges Nil fees on prepayment of floating rate loans, as per RBI prepayment rules which prohibit banks from charging prepayment penalty on loans with floating rate of interest. Hence, it becomes extremely easy to balance transfer your loan from bank to another. If you decide to foreclose or transfer your housing loan to another bank, you need to apply for the same to Indian Bank for a foreclosure while processing your new home loan application with the new bank. However, if you have taken a fixed rate home loan from Indian Bank, you will need to pay a foreclosure fees to close your account or transferring it another bank as per your loan agreement with Indian Bank.

Indian Bank Home Loan Documents

Documents for Salaried employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 2 years
  • Identity Proof - Passport/ Driving Licence/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Documents for Self-Employed

  • Filled up loan application form
  • 2 Passport Size Photo
  • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Indian Bank Pradhan Mantri Awas Yojana

The government of India has launched many affordable housing loan schemes to facilitate availing home loan at concessional rates to lower and middle-income groups. Some of the popular schemes are:

a) PMAY or Home Loan Subsidy Scheme: Launched in 2015 to provide houses to the homeless. You can apply for PMAY at Indian Bank if you fulfil the eligibility criteria. Know more about PMAY Scheme

b) Pradhan Mantri Gramin Awas Yojana:  It focuses on homeless families and offers pucca houses with basic amenities.

c) DDA Housing Scheme: It aims to provide houses to low, middle, and high-income groups.

d) Tamil Nadu Housing Board Scheme: It started in 1961 to provide houses to varied income groups.

e) Mhada Lottery Scheme: It's a lottery scheme launched every year for buyers of varied income groups.

f) Rajiv Awas Yojana: Launched in 2009 with the aim of bringing illegal construction under the formal system and encouraging slum-free India.

Each of these schemes has its conditions with respect to eligibility, the amount of loan that can be borrowed, and the rate of interest.

Illustration on Indian Bank Home Loan Interest Rate
Maximum Annual Percentage Rate (APR)7.55% to 7.85%
Representative example of the total cost of the loan, including all applicable fees
Here is an illustration of the total cost of the loan:
  • Total amount borrowed: ₹ 1 Lakh
  • Time period: 5 years to 20 years
  • Indian Bank Home Loan Interest Rate: 7.55% to 7.85%
  • Processing Fee payable to Indian Bank: Upto ₹ 10,000. Current offer for processing fee is Upto 0.23%
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From ₹ 809 for a 20 years ₹ 1 Lakh loan at 7.55% (lowest rate, longest time period) to ₹ 2,020 for a 5 years ₹ 1 Lakh loan at 7.85% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Total cost payable over loan tenure: ₹ 31,228 for 5 years loan to ₹ 1.04 Lakh for 20 years loan

Indian Bank’s terms and conditions as per loan agreement applicable. Short term loans/ pay day loans not available; minimum loan tenure: 5 years. Rate of interest depends upon income, job stability, loan amount, CIBIL score, credit profile, existing obligations, verification and other factors. Credit at sole discretion of Indian Bank.

FAQs

What is Indian Bank Home Loan interest rate?

Indian Bank Home Loan interest rate ranges between 7.55% to 7.85%.

Why should I opt for balance transfer to Indian Bank?

Indian Bank offers competitive Home Loan rates with the best EMI of ₹ 809 per lakh availed at a low-interest rate of 7.55% for a maximum tenure of 20 years. If you are paying an EMI more than ₹ 809 per lakh, you should consider the option for a loan transfer to Indian Bank from your existing bank. EMIs can be calculated through Indian Bank Home Loan EMI calculators.

Do I get tax benefits on a Home Loan from Indian Bank?

As per the Indian Income Tax Act of 1961, residents of India are eligible for tax benefits on the principal amount and interest components of a house finance under section 24 and section 80C of Income Tax Act.

What is the effect of part prepayments on Indian Bank housing finance EMI ?

Part prepayments help you in reducing the outstanding amount of loan, which in turn will reduce the interest amount due. After making part payments, paying the same Home Loan EMI will increase your involvement towards the principal amount, which will help you in repaying the loan faster.

How to increase my eligibility on Indian Bank housing loan?

If your spouse or family member is earning well, you can make your spouse or family member the co-applicant for your loan. The combination of both of your income will help you in increasing your eligibility to get a loan.

How will Indian Bank housing loan rate of interest change in the future?

  • Indian Bank offers RBI Repo Rate linked Home Loan which starts at 7.55%. Current Repo Rate of RBI is 4.00%. Bank adds a mark up on RBI’s repo rate which is called Indian Bank Repo Rate Linked Lending Rate (RLLR). RLLR can change with change in Repo Rate. An additional spread is applied on RLLR which remains the same throughout the tenure. Bank applies a premium of 3.55% to the Repo Rate to arrive at this rate.
  • When RBI increases rates, the bank may increase its Repo Rate linked Home Loan rates by the same basis points for all existing and new Home Loans. When RBI cuts interest rates, the Indian Bank Home Loan interest rates will reduce the interest rates by the same basis points, which will be effective from 1st day of the following month.
  • For instance, if RBI slashes Repo Rate by 0.15%, then Indian Bank Repo Rate linked Home Loan rate will cut from 7.55% to 7.4%.

What is the current Indian Bank Home Loan rate?

The current Indian Bank Home Loan rate starts from 7.55% with a processing fee of Upto 0.23%, Maximum ₹ 20,381

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Indian Bank Home Loan News - Sep 2020
  • 2020-08-17 : Indian Bank Q1FY21 PAT at Rs. 369.26 crore
    Indian Bank has posted a net profit of Rs.369.26 crores for the period ended June 30, 2020, as against a net profit of Rs. 217.73 crores for the period ended March 31, 2020. In addition to this, the Bank reported a total income of Rs.11446.71 crores aided by retail loans like home, personal, car, two-wheeler.
  • 2020-06-23 : Indian bank reported an increase of 134% net profit
    Public sector lender Indian Bank reported an increase in a net loss in the 4th quarter of FY20 however, its net profit zoomed 134% for the full year on the back of the personal, home, car, two-wheeler, business, mudra, gold, education loans. The bank also reported an improvement in its asset quality.
  • 2019-09-26 : Indian Bank to provide repo linked retail and business loan
    After RBI made it compulsory for banks to offer loan products linked with any of the external benchmarks available, Indian Bank has opted for RBI’s repo rate linked loans from October 1, 2019. Further, repo linked personal, home, and business loans will provide faster transmission of rate updates to the borrowers.
  • 2019-08-16 : Indian Bank introduces new repo rate linked home loan product
    In a bid to make home loans affordable and convenient for its borrrowers, Indian Bank has introduced new home loan product linked to the RBI’s repo rate.This might make home loans cheaper for the bank customers, as this will prompt RBI to revise its lending rates for the loan seekers.
  • 2019-08-08 : Indian Bank signs bancassurance agreement with SBI Life Insurance
    With an aim to offer proper financial planning solutions to bank customers, SBI Life Insurance and Indian Bank have entered into a bancassurance agreement. The partnership will ensure easier accessibility of life insurance products to the consumers. In addition, the lender also has plans to expand its bank branches across the nation and to achieve growth across its retail loans including home loans and loan against property.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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