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OBC Home Loan Interest Rates 2020

OBC Housing Loan Interest Rate

Last Updated 01st Sep 2020

Current OBC Home loan interest rates for Sep 2020 starts at 8.00% p.a. for a maximum tenure of 25 years. Processing fee on its housing loans is Upto 0.50%, Maximum ₹ 20,000.

Loan AmountOBC Repo Rate Home Loan Rate
Upto ₹ 30 Lakh8.00%
₹ 30 Lakh - ₹ 75 Lakh8.00%
₹ 75 Lakh - ₹ 1.50 Cr8.35%
Above ₹ 1.50 Cr8.35%

OBC has merged into Punjab National Bank on April 1, 2020. The interest rates of Punjab National Bank will now be applicable on OBC Home Loan.

OBC Home Loan Interest Rates

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

Features

  • OBC Home Loan Interest Rate starts from 8.00%.
  • OBC charges a processing fees of Upto 0.50%, Maximum ₹ 20,000.
  • Loan Tenure of Home Loan ranges from 5 years to 25 years.
  • Lowest EMI per lakh on home Loan from OBC is ₹ 772 per lakh offered at the lowest interest rate of 8.00% at the longest loan tenure of 25 years.
  • OBC allows prepayment of home loans with Nil charges on floating rate loans.
  • OBC has an average customer rating of 2.5/5.0 from customers who have taken a home loan from the bank.

OBC Home Loan Rate

Current OBC home loan interest rates are in the range of 8.00% to 8.55%, with special discounted rates for specific categories of borrowers such as women borrowers for whom the bank offers the lowest interest rate of 8.00%. The table below gives the interest rates on various housing finance schemes of OBC.

OBC Home Loan Scheme Interest Rates
OBC Repo Rate Home Loan8.00% - 8.55%

OBC Bank Home Loan Charges

OBC Home Loan Processing Fee

OBC home loan processing charges are upto 0.50% 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 ₹ 20,000. The processing fees is typically non-refundable and has to be paid at the time of loan application. In addition to OBC 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.

OBC Home Loan Prepayment

OBC 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 OBC 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 OBC, you will need to pay a foreclosure fees to close your account or transferring it another bank as per your loan agreement with OBC.

OBC 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

OBC 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 OBC 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 OBC Home Loan Interest Rate
Maximum Annual Percentage Rate (APR)8% to 8.55%
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 25 years
  • OBC Home Loan Interest Rate: 8.00% to 8.55%
  • Processing Fee payable to OBC: Upto ₹ 10,000. Current offer for processing fee is Upto 0.50%
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From ₹ 772 for a 25 years ₹ 1 Lakh loan at 8.00% (lowest rate, longest time period) to ₹ 2,054 for a 5 years ₹ 1 Lakh loan at 8.55% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Total cost payable over loan tenure: ₹ 33,244 for 5 years loan to ₹ 1.42 Lakh for 25 years loan

OBC’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 OBC.

FAQs

What is OBC Home Loan interest rate?

OBC Home Loan interest rate ranges between 8.00% to 8.55%.

Why should I opt for balance transfer to OBC?

OBC offers competitive Home Loan rates with the best EMI of ₹ 772 per lakh availed at a low-interest rate of 8.00% for a maximum tenure of 25 years. If you are paying an EMI more than ₹ 772 per lakh, you should consider the option for a loan transfer to OBC from your existing bank. EMIs can be calculated through OBC Home Loan EMI calculators.

Do I get tax benefits on a Home Loan from OBC?

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 OBC 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 OBC 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 OBC housing loan rate of interest change in the future?

  • OBC offers RBI Repo Rate linked Home Loan which starts at 8.00%. Current Repo Rate of RBI is 4.00%. Bank adds a mark up on RBI’s repo rate which is called OBC 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 4% 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 OBC 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 OBC Repo Rate linked Home Loan rate will cut from 8.00% to 7.85%.

What is the current OBC Home Loan rate?

The current OBC Home Loan rate starts from 8.00% with a processing fee of Upto 0.50%, Maximum ₹ 20,000

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OBC Home Loan News - Sep 2020
  • 2020-01-24 : OBC net profit surged by 39.11%
    Oriental Bank Of Commerce profit increased by 393.11% to Rs 201.66 crores. The total income boosted by Home Loan and Business Loan increased to Rs 5642 crores which was Rs 5127 crores earlier. Further, gross NPA fell to 12.64% from 15.82% in the corresponding period of last year.
  • 2020-01-10 : OBC cuts lending rates by 15 bps
    With effect from 10 January 2020, Oriental Bank Of Commerce revised its MCLR. The one-year MCLR rate stands at 8.15% which was 8.30% in the previous month. The MCLR for overnight period is 7.55%, one-month MCLR is 7.60% and three months MCLR is 7.80%. MCLR for six months stands at 8% which was 8.05% earlier. The revised rates will impact loan against property and home loans.
  • 2019-08-09 : Oriental Bank of Commerce reduces MCLR rates by 5 bps making it home loans cheaper
    Oriental Bank of Commerce (OBC) has slashed its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points, making its home loans and mortgage loans cheaper. The lender has reduced a one-year MCLR rate to 8.55%, earlier the rate was 8.65%. For one-month and three months, the rate has been revised to 8.20% and 8.35% respectively. The rates are effective from August 10, 2019.
  • 2019-07-23 : Oriental Bank of Commerce’s Q1 net profit at Rs. 112 crores on better asset quality
    Public sector lender, Oriental Bank of Commerce has posted a net profit of Rs. 112 crore on the back of better asset quality and fewer provisions. The lender also has plans to achieve significant growth across its retail loan segment, including home loans and fixed deposits.
  • 2019-07-11 : OBC retail loans to get cheaper, lender slashes its MCLR rates by 5-10 bps across various tenures
    The retail loans offered by Oriental Bank of Commerce (OBC) will get cheaper now as the lender has reduced its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 to 10 basis points across various tenors with immediate effect. The lender has reduced the one-year MCLR to 8.65% as against 8.70% earlier. While for one month and three months, the rate stands at 8.25% and 8.45% which is down by 10 basis points and 5 basis points from earlier rates. The rates are effective from July 11, 2019.
*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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