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Product Details
Bank Name

Indian Overseas Bank Limited

Maximum Loan Tenure

The loan is repaid in a maximum of 144 Equated Monthly Installments (12 years).

Maximum Loan Amount

The loan amount depends on the actual estimate of the improvement to be undertaken and also depends on the repaying capacity of the applicant. The minimum loan amount is INR 25,000 and the maximum is INR 15.00 lakhs.

Interest Rate

Upto INR 2.00 Lakhs - 9.65
Above INR 2.00 LACS - 9.8

Type

Floating

Home Improvement Scheme
Down Payment

Not specified

Fees and Charges

Processing Charges- 0.50 % (max. INR 20,000/-)
Stamp Duty And Registration Charges: At Actuals
Legal Fee: At Actuals
Penal Interest Rate (In case of delayed EMI): If the loan amount is up to Rs. 1 crore, the penal interest is 2% per annum on the overdue amount for the overdue period. If the loan amount is above Rs. 1 crore, the penal interest is 3% per annum on the overdue amount for the ove

Minimum CIBIL Score

Not specified.

Down Payment and Fees
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Home Improvement Scheme

Special Features

Repayment of the loan starts only after three months from the date of disbursement of the loan.

Eligibility Criteria

To be eligible for an Indian Overseas Bank (IOB) Home Improvement Loan, you must meet the following criteria:

Individual Applicants:

  • Age: Up to 60 years old at the loan maturity date.

  • Employment: You must be a salaried individual in permanent service with at least 2 years of service or a self-employed professional with at least 3 years of experience in your field.

  • Minimum Income: IOB does not specify a minimum income requirement, but your income needs to be sufficient to afford the loan repayments and meet the bank's debt-to-income (DTI) ratio requirements. Typically, the DTI ratio should not exceed 50%.

  • Credit Score: Maintain a good credit score to improve your chances of loan approval.

Property Ownership:

  • Type of Property: The property must be a residential house or flat owned by you.

  • Loan Purpose: The loan can be used for repairs, renovations, upgradation, modifications, or additions to your existing home.

Additional Eligibility:

  • Mortgage: The existing property will be mortgaged to the bank as security for the loan.

  • Location: The property must be located in India.

  • Insurance: The property must be adequately insured against fire and other risks.

Documents Required:

  • Application form

  • Proof of identity and address

  • Proof of income (salary slips, ITRs, business income proof)

  • Property documents (property tax receipts, title deed)

  • Cost estimates for the planned improvements

  • Bank statements

  • Photographs

  • Signature verification

Additional Notes:

  • IOB may have additional eligibility criteria or documentation requirements depending on your specific circumstances.

  • You can check the detailed eligibility criteria and documentation requirements on IOB's website: https://www.iob.in/Home-Improvement-Scheme

  • It's always best to contact IOB directly to discuss your specific situation and confirm your eligibility for a Home Improvement Loan.

Special Concession

None.

Home Saver Option

Not availiable. 

Features, Eligibility and Concession
Pros
  • No Prepayment Charges: Borrowers have the freedom to repay the loan early without incurring any additional charges, providing flexibility in managing finances. 

  • Initial Holiday Period: Repayment begins three months from the loan date, allowing borrowers some time before starting regular installments.

  •  Alternate Security Option: If the property being renovated cannot be mortgaged, another property in the borrower's name with double the market value of the loan amount can be used as security.

Cons
  • Limited Repayment Period: The loan must be repaid within a maximum of 144 Equated Monthly Installments, which may lead to higher monthly payments depending on the loan amount and tenure. 

  • No home saver option. 

Pros & Cons
Application Procedure

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