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IOB Loan Against Property

Indian Overseas Bank Mortgage Loan Interest Rates 2021

Last Updated 07th Jan 2021

Indian Overseas Bank offers Loan Against Property starting at interest rate of 9.75% which is one of the best mortgage loan rates in India. Check Best Offers

Processing Fee Upto 0.62%
Max Tenure 7 years
Lowest EMI ₹ 1,647 per lakh
Prepayment, Foreclosure Charges Allowed with nil charges for floating rate loans to individuals
Age Min 21 and Max 60 years for Salaried
Min 21 and Max 65 years for Self Employed
    Apply for Loan Against Property @ 7.20%* Get upto ₹ 1,000* Cashback

    Indian Overseas Bank Loan Against Property Fees and Other Charges

    IOB charges various fees and charges when a borrower takes a loan against property:-

    • Processing Fee on IOB LAP Loan is 0.75%. This fee is charged by IOB to maintain the applicant’s loan account and to process the loan application.
    • Advocate's fee for property search and title investigation report.
    • Valuer's fee for valuation report.
    • Stamp duty payable for Loan agreement and mortgage.
    • Property insurance premium.
    • CERSAI Registration Fee of ₹ 50 + GST up to ₹ 5 Lakh limit and ₹ 100 + GST for limits above ₹ 5 Lakh.

    Mortgage Loan Interest Rates in Indian Overseas Bank for Salaried employee

    The mortgage loan interest rates in Indian Overseas Bank for salaried employee are listed in the table:-

    Interest Rate for Salaried for Commercial Property

    Loan Amount Rate
    Upto ₹ 20 Lakh 9.75%
    ₹ 20 Lakh - ₹ 50 Lakh 9.75%
    ₹ 50 Lakh - ₹ 75 Lakh 9.75%
    Above ₹ 75 Lakh 9.75%

    Interest Rate for Salaried for Residential Property

    Loan Amount Rate
    Upto ₹ 20 Lakh 9.75%
    ₹ 20 Lakh - ₹ 50 Lakh 9.75%
    ₹ 50 Lakh - ₹ 75 Lakh 9.75%
    Above ₹ 75 Lakh 9.75%

    Indian Overseas Bank Property Loan Interest Rate for Business Man or Self Employed Person

    The interest rate for mortgage loans for Self-employed people are listed in the table:

    Interest Rate for Self-employed for Commercial Property

    Loan Amount Rate
    Upto ₹ 20 Lakh 9.75%
    ₹ 20 Lakh - ₹ 50 Lakh 9.75%
    ₹ 50 Lakh - ₹ 75 Lakh 9.75%
    Above ₹ 75 Lakh 9.75%

    Interest Rate for Self-Employed for Residential Property

    Loan Amount Rate
    Upto ₹ 20 Lakh 9.75%
    ₹ 20 Lakh - ₹ 50 Lakh 9.75%
    ₹ 50 Lakh - ₹ 75 Lakh 9.75%
    Above ₹ 75 Lakh 9.75%

    Steps to Apply for Indian Overseas Bank Loan Against Property

    Loan against property in IOB can be availed through two ways online as well as offline. To apply online perform the following steps:-

    • Visit the official website of Indian Overseas Bank
    • Go to products
    • Select Loan Against Property
    • Check eligibility and interest rates and fees
    • Click on Apply Now
    • Fill the application form
    • Upload the required documents
    • Bank will do the verification
    • In 10-15 days loan amount will be sanctioned in your bank account

    You can also apply offline, through the following steps:-

    • Visit the nearest IOB branch
    • Fill the loan against property form
    • Submit the required documents
    • Banks will do the verification and inform you if loan is approved or not
    • Once loan is approved you will receive the amount in your bank account
    Indian Overseas Bank Floating Rate Loan Against Property lap (LAP)

    As on 15 Jun, 2021, IOB offers the lowest rate starting at 9.75%. IOB Loan against property rates have been dropped by 1.1%, from the earlier rate of 10.85% with effect from 01 Apr, 2021.

    Indian Overseas Bank Mortgage Loan Interest Rates
    Indian Overseas Bank Loan Against Property Floating 9.75%
    Indian Overseas Bank Loan Against Property Floating
    Loan AmountCurrent LAP Rates
    Upto ₹ 20 Lakh 9.75%
    ₹ 20 Lakh - ₹ 50 Lakh9.75%
    ₹ 50 Lakh - ₹ 75 Lakh9.75%
    Above ₹ 75 Lakh 9.75%

    IOB Loan Against Property Rate Trends of Last 1 Year

    Last Updated Date Interest Rates
    01 Apr, 2021 9.75%
    31 Mar, 2021 9.75%
    30 Mar, 2021 9.75%

    Factors Affecting Property Loan Interest Rate IOB

    Some of the factors that impact IOB Loan Against Property rates are listed as follows:

    • Loan amount: Property loan rates in IOB depend upon the loan amount you apply for. You can get a minimum loan of ₹ 1 Lakh from IOB.
    • Your Net Monthly Income: Income helps you in identifying your rate of interest. Higher the income, higher will be your repayment capacity which will increase your eligibility for higher loan amount.
    • Type of loan opted for: IOB offers differential rates for different profiles of customers and also fixed and floating rate schemes. Loan against property interest rates may be higher or lower for special loan products.
    • Type of property: Typically, loans against prime residential properties are easier to get and can be availed at the lowest rates compared to loans against commercial and industry properties.
    • Your profession: IOB may charge a higher interest rate on a mortgage loan by a salaried person as compared to a self-employed professional or a businessman. A self employed professional or businessman is expected to deploy loan proceeds for productive purposes in his occupation or business compared to salaried people who who will most likely take a mortgage loan for his personal purposes.

    IOB Loan Against Property lap Eligibility

    IOB has detailed criteria to determine a potential borrower’s eligibility for mortgage loans. Some of the key criteria are:

    Eligibility Criteria Details
    Age 21 to 60 years
    Loan Amount ₹ 1 Lakh to ₹ 1 Cr
    Minimum years of business existence 2 years
    Minimum work experience 2 years
    Minimum Credit Score 650 and above
    Loan to Value Ratio Upto 50%
    FOIR (Fixed Obligations to Income Ratio) 0.65

    • Age: Age is one of the important factors to examine your eligibility. Indian Overseas Bank offers loans to salaried and self employed from the age of 21 years. Any person taking a loan at the age of 21, can get a loan of up to 15 years, thus reducing the burden on existing income and hence, improving loan amount eligibility.
    • Income: Property loan is mostly taken by self employed individuals primarily to meet their business requirements. However, in order to increase the loan amount you may club the income of family members like your spouse, parents, children and siblings.
    • Business Stability: Self employed person should be in business for a minimum of 2 years during which the business should be profitable.Indian Overseas Bank will ask for ITRs of 2 years to consider you as eligible for LAP.
    • CIBIL Score: Past CIBIL history and repayment record of existing loans and credit cards has adverse impact on your loan eligibility. If you have a poor repayment record, then you may find it difficult to get a loan. A regular repayment record not only improves your chances of getting a loan, but also increases your loan eligibility. Indian Overseas Bank grants loans to borrowers with a CIBIL score of 650 and above.
    • Loan Amount: Indian Overseas Bank gives you an amount ranging from ₹ 1 Lakh to ₹ 1 Cr. To improve chances of approval, apply for a loan amount that you can comfortably service.
    • Property Value: The value of the property to be mortgaged is used to calculate maximum loan eligibility based on the maximum permissible LTV ratio which can range upto 50% depending on the type of property. Indian Overseas Bank will conduct a detailed property assessment to establish that all legal titles are in place, assess the market value of the property, and its sale ability. LTV is calculated based on the estimated fair market value or registered value, whichever is lower.
    • Fixed Obligations to Income Ratio (FOIR): The bank will also calculate the proportion of your fixed obligations to your income to calculate the Fixed Obligations to Income Ratio, known as FOIR. Fixed obligations include estimated average monthly expenses and EMIs you are paying on other existing loans. Minimum FOIR to be eligible for a Indian Overseas Bank mortgage loan is 0.65.

    Indian Overseas Bank Mortgage Loan Eligibility Calculator

    Indian Overseas Bank Property Loan Eligibility is the amount of loan you can avail based on an assessment of your repayment capacity as well as the value of property. You can use Indian Overseas Bank LAP eligibility calculator to get a fairly accurate estimate of your potential eligibility subject to the information provided by you.

    Indian Overseas Bank Mortgage Loan Interest Rate and EMI Calculator

    You can also use online Indian Overseas Bank Loan against property EMI Calculator to calculate loan EMIs. EMI is a fixed amount that you are required to pay each month towards the repayment of your loan till the end of tenure

    • EMI calculator of Indian Overseas Bank helps you to calculate your monthly EMI at different rates of interest and also check and compare lowest EMI per lakh on LAP.
    • Higher the loan amount, higher the EMI. You can compare the estimated EMI with your monthly repayment capacity to decide on a level of EMI you can comfortably service without creating financial burden.
    • Loan tenure matters equally as higher loan tenure reduces your EMI.
    • Another factor which affects your EMI is the interest rate on the loan. Higher the interest rate, higher will be the EMI. However, your cumulative interest outgo will be significantly high in a longer tenure loan compared to a short tenure loan. Loan against property interest rate comparison of different banks will allow you to choose the cheapest loan and hence, improve your eligibility.

    What are the Benefits of Calculating Indian Overseas Bank Mortgage Loan EMI?

    • EMI calculator helps you to calculate your monthly EMI at different rate of interest
    • Indian Overseas Bank Mortgage loan EMI calculator helps you to know your capacity to repay the loan after maintaining your standard of living
    • Getting an EMI estimate will help you ascertain the monthly EMI you can comfortably service, thus allowing you to choose the right combination of loan amount and loan tenure.
    Loan Against Property Top up, Transfer in Indian Overseas Bank

    Indian Overseas Bank offers mortgage loan balance transfer from another bank. This is subject to your meeting other eligibility criteria of Indian Overseas Bank.You can avail additional top-up loan against property from Indian Overseas Bank, subject to your eligibility.With Indian Overseas Bank Top up LAP loan, you can continue with your existing LAP loan at affordable interest rate, higher loan amount and convenient loan tenure.

    Indian Overseas Bank Loan Against Property Documents Required

    For Self-Employed

    • Filled up loan application form
    • 2 Passport Size Photo
    • ITR of last 2 years
    • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
    • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 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
    For Salaried employee
    • Filled up loan application form
    • 2 Passport Size Photo
    • ITR of last 0 years
    • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
    • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 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
    • Registered Sale Deed/ Conveyance/ Lease Deed
    • Past Sale Deeds Chain (each transaction in respect of this property since first allotment
    • Latest House Tax Return/ Receipt
    • Approved Building Plan from Municipal Corporation

    FAQs

    What is Indian Overseas Banks loan against property interest rate?

    Indian Overseas Bank offers loan against property at a rate of 9.75% with the lowest EMI of ₹ 1,647. If you are currently paying a higher interest rate than Indian Overseas Bank rate, you can opt for balance transfer of loan to Indian Overseas Bank.

    Did Indian Overseas Bank Loan against property rates drop?

    Yes, Indian Overseas Bank loan against property rates has been decreased by 1.1% from the previous rate of 10.85% to 9.75%. The lowest mortgage rates of Indian Overseas Bank is effective from 01 Apr, 2021.

    How to increase my eligibility on Indian Overseas Bank Mortgage 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.

    Do I get tax benefit on Loan against property from Indian Overseas Bank?

    There are no tax benefits available for loan against property.

    • Indian Overseas Bank offers RBI Repo Rate linked mortgage loan which starts at 9.75%. Current Repo Rate of RBI is 4.00%. Banks adds a mark up on RBI’s repo rate which is called Indian Overseas 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 5.75% to the Repo Rate to arrive at this rate.
    • When RBI increases rates, the bank may increase its Repo Rate linked property loan rates by the same basis points for all existing and new mortgage loans. When RBI cuts interest rates, the Indian Overseas Bank loan against property interest rates will reduce the interest rates by the same basis points, which will be effective from the 1st day of the following month.

    Can I foreclose my Mortgage loan? What are the charges applicable?

    Yes, you can foreclose your loan anytime you want with Nil foreclosure charges.

    What is the maximum loan tenure I can opt under Indian Overseas Bank Property loan?

    Indian Overseas Bank offers a maximum tenure of 7 years to repay your loan.You can choose the tenure for your LAP loan as per your convenience and repayment ability.

    What is the benchmark rate applicable for Mortgage loan?

    The benchmark rate applicable for property loans in Indian Overseas Bank is RLLR

    Can I transfer my LAP from another bank to Indian Overseas Bank?

    Yes, Bank gives you the facility to transfer your existing loan with a hassle free process. Loan balance transfer to Indian Overseas Bank offers you to pay lower EMIs and save money.

    Can I club the income of my spouse with mine and apply for joint Property loan?

    Yes, you can club the income of your spouse to increase your loan eligibility.You can bring in your spouse as a co-owner of the property or guarantor of the loan.

    What is Indian Overseas Bank mortgage loan processing fees?

    The loan processing fee charged is 0.62% of the total loan amount.

    What is Indian Overseas Bank property loan procedure?

    You can apply for a Indian Overseas Bank property loan by contacting the bank directly or by approaching them through online marketplaces like MyLoanCare. Approaching the bank through an online marketplace improves the chances of getting best loan rates, low processing fees and special offers in the form of cash backs. Once you approach the bank, they will collect your documents and initiate the loan process which includes checking your CIBIL score, property valuation, technical and legal checks on property, eligibility calculation. The bank will give a decision on your loan based on the evaluation results.

    What security do I need to provide for Indian Overseas Bank Mortgage Loan?

    Indian Overseas Bank requires a registered mortgage of the property against which the bank will provide you a loan.

    • Property on which you intend to take loan is not vacant land, has an approved map plan and is in a municipal area. You must attach the entire chain of title documents of the property and its approved building plan with the loan application.
    • Your total EMIs on all loans and credit cards (from Indian Overseas Bank and other banks) are no more than 60 - 70% of your net monthly income.
    • You have not defaulted on loans or credit card dues to Indian Overseas Bank and other banks and all EMI's have been paid. Note that Indian Overseas Bank can see the record or status of your EMI defaults to all banks and NBFC’s in India and not just to Indian Overseas Bank in your CIBIL report. Estimate your CIBIL score for free for free by using CIBIL score estimate calculator
    • If you are salaried, ensure that you attach your recent salary slips, bank statements and last 3 years' Form 16 with the loan application
    • If you are self employed, your business must have been in existence for at least three years and last three income tax returns with audited financial must be available

    Are prepayment or foreclosure charges applicable on Indian Overseas Bank loan against property?

    You can prepay loan against property (LAP) without any penalty or charges in case:

    • Your loan is at a floating rate of interest and not at a fixed rate. Almost all loans against property are at floating rates and it is unlikely that yours is at a fixed rate of interest
    • The loan is in the name of one or more individual borrowers and none of the applicants and co-applicants is a business entity like a company or a firm or partnership or AOP

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    IOB Loan Against Property News - Jun 2021
    • 2020-08-21 : Indian Overseas Bank reported Rs. 120.69 crore net profit in Q1FY21
      Indian Overseas Bank reported a net profit of Rs.120.69 crores for the period ended June 30, 2020, as against a net profit of Rs.143.79 crores for the period ended March 31, 2020. In addition to this, the bank posted a total income of Rs.5233.63 crores backed by retail loans like home, personal, car, two-wheeler and gold loans along with business and mudra loans. Total deposits which include Fixed and recurring deposits increased to Rs 2.26 lakh crore as on June 30, 2020, as against Rs 2.21 lakh crore by June last year.
    • 2019-07-10 : Indian Overseas Bank to raise Rs. 500 crore via Tier-II bonds
      Public sector lender, Indian Overseas Bank is planning to raise Rs. 500 crore through sale of bonds, to fund business growth. Also, the lender has plans to achieve significant growth across its retail loan segment, including home loans and mortgage loans during FY19-20.
    • 2019-06-26 : Indian Overseas Bank to focus on a robust policy framework to reduce NPAs
      In a bid to reduce non-performing assets, private sector lender, Indian Overseas Bank would now focus on maintaining a robust policy framework. The lender also has plans to rebuild its brand image by further improving its customer service and enhanced digital-based assistance while lending retail loans, including home loans and mortgage loans to customers.
    • 2019-05-07 : Indian Overseas Bank plans to raise Rs. 850 crore through sale of non-core assets
      Indian Overseas Bank (IOB) is planning to raise about Rs. 850 crore this fiscal from the sale of non-core assets including properties and investments in order to augment its capital. Moreover, the bank is further exploring for all the other options to raise capital. Currently, the bank has identified 32 properties for sale, including prime properties in Singapore and Hong Kong aggregating to Rs. 900 crore, previously it had sold six properties for raising capital to accelerate strong loan and deposits growth.
    • 2019-04-11 : RBI rate cut leads to cheaper loans
      Following the repo rate cut by RBI, commercial banks including SBI and Indian Overseas Bank, have reduced their MCLR and home loan rates, effective from April 10. SBI has reduced its MCLR by 5 basis points across all tenors with the one-year MCLR coming down from 8.55% to 8.50% which will reduce the interest rate on home loans and other loans. While Indian Overseas Bank also reduced its interest rate on loans by 5 basis points for tenures of 1 year and above effective from April 10.
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