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IOB Loan Against Property

Indian Overseas Bank Mortgage Loan Interest Rates 2021

Last Updated 17th Nov 2021

Indian Overseas Bank is one of the largest Public Sector Bank in the country that offers the lowest rates on loan against property. Currently, the bank offers loans starting from 9.75% with quick approval and online process. The bank offers special features and attractive rates for different income and occupation groups. Some of the key features of Indian Overseas Bank Loan against property are mentioned below: 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 @ 6.90%* Get upto ₹ 1,000* Cashback

    Indian Overseas Bank Loan Against Property Fees and Other Charges

    Along with IOB Loan against Property Rates, IOB also 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.

    Loan Against Property Interest Rates in Indian Overseas Bank for Salaried Employees

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

    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 10.25%

    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 10.25%

    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 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 10.25%

    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 10.25%

    Steps to Apply for Indian Overseas Bank Loan Against Property

    You can apply for Indian Overseas Bank Loan against property through online as well as offline modes. To apply for a loan through offline mode, you need to visit the official Indian Overseas Bank bank branch and fill the application form along with the required documents for loan against property. The bank will then complete the verification process and will sanction the loan on loan approval. Once the loan is approved, you will receive the amount in your bank account.

    To apply online for Indian Overseas Bank Loan against Property online, you need to follow these steps:-

    • Visit the official website of Indian Overseas Bank and navigate to Loan Against Property.
    • Before applying, now check your eligibility for Indian Overseas Bank Loan against Property.
    • Check various details about the loan, such as interest rates and other charges.
    • If you are satisfied and have cross verified all the details, fill the application form and upload the required documents.
    • On successful verification, the bank will sanction the loan amount in 10-15 days.

    Apart from that, you can also visit online marketplaces like MyLoanCare to apply for a IOB Loan against property. Here, you can compare offers IOB with other top banks and can use the EMI and Eligibility calculators to plan your expenses and loan repayments. IOB Loan against property application process at MyLoanCare is hassle-free and transparent.

    Compare Indian Overseas Bank Loan Against Property Interest Rate with Top Banks

    Indian Overseas Bank offers multiple schemes for loan against property at affordable interest rates. However, you must compare SBI and other bank’s home loan rates before applying:-

    Particulars Indian Overseas Bank SBI HDFC
    Interest Rate 9.75% - 10.25% 8.80% - 13.10% 8.75% - 9.90%
    Processing Fees Upto 0.62%
    Min ₹ 890 Max ₹ 8,900
    Upto 1.00%
    Max ₹ 50,000
    Upto 0.75%
    Loan Tenure 7 Years 10 Years 15 Years
    Maximum Loan Amount ₹ 1 Cr ₹ 7.50 Cr ₹ 5 Cr
    Age Min 21 and Max 65 years Min 18 and Max 70 years Min 24 and Max 65 years
    Benchmark Rate RLLR RLLR PLR
    Lowest EMI Per Lakh ₹ 1,647 per lakh ₹ 1,256 per lakh ₹ 999 per lakh
    Indian Overseas Bank Floating Rate on Loan Against Property

    As on 29 Nov, 2021, IOB offers the lowest rate starting at 9.75%. IOB Loan against property rates have been dropped by 0.5%, from the earlier rate of 10.25% with effect from 11 Oct, 2021.

    Indian Overseas Bank Mortgage Loan Interest Rates
    Indian Overseas Bank Loan Against Property Floating 9.75% - 10.25%
    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
    11 Oct, 2021 10.25%
    01 Apr, 2021 9.75%
    31 Mar, 2021 9.75%
    30 Mar, 2021 9.75%

    Factors Affecting IOB Loan against Property Interest Rates

    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. 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 increasing your eligibility for higher loan amount.
    • Type of loan opted for: IOB offers differential rates for customers different profiles 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 to a salaried person than 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 will most likely take a mortgage loan for his personal purposes.

    IOB Loan Against Property Eligibility Criteria

    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 ₹ 0 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

    Indian Overseas Bank Mortgage Loan Interest Rate and EMI Calculator

    You can also use an 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

    • The Indian Overseas Bank Mortgage Loan EMI calculator helps you calculate your monthly EMI at different rates of interest and check and compare the lowest EMI per lakh on LAP.
    • 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 that affects your EMI is the loan against property interest rate. Higher the interest rate, higher will be the EMI. However, your cumulative interest outgo will be significantly higher in a longer tenure loan than 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.
    Loan Against Property Top up, Transfer in Indian Overseas Bank

    Indian Overseas Bank offers mortgage loan balance transfer from another bank, subject to your meeting other eligibility criteria of Indian Overseas Bank at an affordable interest rate, higher loan amount and convenient loan tenure. Indian Overseas Bank loan against property balance transfer helps you make your loan repayment convenient and opt for a beer customer service. Current loan against property balance transfer rates in Indian Overseas Bank are 9.75%. Along with that, you can also avail of additional top-up on your loan against property.

    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 a 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 decreased by 0.5% from the previous rate of 10.25% to 9.75%. The lowest mortgage rates of Indian Overseas Bank are effective from 11 Oct, 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.

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

    Yes, you can foreclose your Indian Overseas Bank loan against property 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 and enables you to choose better customer service, if you are not satisfied with your existing bank. Current Balance transfer rates in Indian Overseas Bank are 9.75%.

    What is Indian Overseas Bank mortgage loan processing fees?

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

    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 - Nov 2021
    • 2021-11-17 : Indian Overseas Bank Lowers Yearly Profit
      State-owned Indian Overseas Bank has reported a downward profit of Rs 646 cr for 2020-21. The profit is after reporting a divergence in asset classification and provisioning for bad loans.
    • 2021-06-15 : Indian Overseas Bank declared a profit of Rs 831 crore
      IOB closed the last fiscal with a net profit of Rs.831 crore as against a net loss of about Rs.8,527 crore. The total income for the year ended 31.03.2021 stands at Rs.22,525 crore as against Rs.20,766 crore for FY20. IOB plans to come up with Prompt Corrective Action to focus on loan recovery, low-cost deposits and less capital consuming advances.
    • 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.
    *Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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