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Indian Bank provides home loans with competitive interest rates starting from 7.90% per annum. As a leading public sector bank established in 1907, Indian Bank offers loan amounts up to Rs. 10 crore with flexible repayment tenure up to 30 years. The bank provides special concessions for women borrowers with interest rate reductions of 30-55 basis points depending on the scheme. With processing fees of only 0.25% of the loan amount and zero prepayment charges on floating rate loans, Indian Bank makes homeownership accessible and affordable. The bank serves both resident Indians and NRIs with various schemes including IB Home Loan, IB Home Advantage, IB Home Plus, and specialized options for renovation and improvement. Whether purchasing a new property, constructing a house, or renovating an existing home, Indian Bank offers transparent pricing with holiday periods up to 18 months for construction loans.
|
Parameter |
Details |
|
Starting Interest Rate |
7.90% p.a. |
|
Interest Rate Range |
7.90% - 10.55% p.a. |
|
Minimum Loan Amount |
Rs. 10,000 |
|
Maximum Loan Amount |
Rs. 10 crore |
|
Maximum Tenure |
30 years |
|
Processing Fee |
0.25% of loan amount |
|
Prepayment Charges |
Zero (floating rate loans) |
|
Women Concession |
30-55 basis points |
|
Minimum Age |
18 years |
|
Maximum Age |
70 years |
|
LTV Ratio |
Up to 90% |
|
RLLR (Current) |
8.20% |
|
Loan Scheme |
Interest Rate (p.a.) |
Purpose |
|
IB Home Loan |
8.15% - 10.55% |
Purchase/construction/renovation |
|
IB Home Advantage |
8.40% + 1% surcharge |
Premium home loan with higher amount |
|
IB Home Plus |
8.40% + 0.50-0.75% |
Based on CIBIL score (751-799/800+) |
|
IB Home Enrich |
8.40% + 0.50% |
Renovation/repair/extension |
|
IB Home Improve |
9.00% - 9.90% |
Furniture/fittings/appliances |
|
IB Plot Loan |
8.40% + 1% |
Plot purchase only |
|
IB Home Overdraft |
As per standard rates |
Overdraft facility on home loan |
|
Property Category |
Additional Interest |
|
Standard Home Loan |
Base rate (8.40% onwards) |
|
Plot Loan |
+1.00% additional |
|
CRE Format Loan |
+0.50% additional |
|
Renovation Loan |
+0.50% additional |
|
Scheme |
Concession |
Condition |
|
IB Home Enrich (Salaried with tick-off) |
55 basis points |
Special rate reduction |
|
IB Home Enrich (Non-Salaried) |
30 basis points |
Standard concession |
|
Standard Home Loans |
Case-by-case |
Based on profile |
|
CIBIL Score Range |
Interest Rate Impact |
|
800 and above |
Lowest rates available |
|
750 - 799 |
Competitive rates |
|
701 - 750 |
Slightly higher rates |
|
700 and below |
Higher rates |
|
Below 650 |
May face rejection or very high rates |
|
Bank Name |
Starting Interest Rate |
Processing Fee |
Prepayment Charges |
Maximum Tenure |
|
Indian Bank |
7.90% p.a. |
0.25% |
Zero (floating) |
30 years |
|
Bank of Maharashtra |
7.35% p.a. |
NIL |
Zero |
30 years |
|
SBI |
7.50% p.a. |
0.35% + GST |
Zero (floating) |
30 years |
|
HDFC Bank |
7.90% p.a. |
Up to 0.50% |
Zero (floating) |
30 years |
|
ICICI Bank |
7.70% p.a. |
Up to 1% |
Zero (floating) |
30 years |
|
IDFC First Bank |
8.85% p.a. |
0.25-0.50% |
Zero (floating) |
30 years |
|
Axis Bank |
8.35% p.a. |
Up to 1% |
Zero (floating) |
30 years |
|
Kotak Mahindra |
7.99% p.a. |
Up to 1% |
Zero (floating) |
30 years |
|
Feature |
Benefit |
|
Public Sector Bank |
Government-backed trust and stability |
|
Low Processing Fee |
Only 0.25% of loan amount |
|
Zero Prepayment Penalty |
Close loan early without charges |
|
Women-Friendly |
Special interest rate concessions |
|
Holiday Period |
Up to 18 months for construction |
|
High Loan Amount |
Up to Rs. 10 crore available |
|
Long Tenure |
Up to 30 years for manageable EMIs |
|
NRI Eligibility |
Special schemes for non-residents |
|
Wide Network |
2,594 branches across India |
|
Established Legacy |
117+ years of banking experience |
|
Purpose |
Maximum LTV |
|
Purchase/Construction |
Up to 90% |
|
Renovation/Repair |
Up to 100% (within limits) |
|
Plot Purchase |
As per norms |
|
Balance Transfer |
Based on property valuation |
|
Purpose |
Maximum Holiday Period |
|
Construction on Existing Plot |
Up to 18 months |
|
Flats Under Construction |
Up to 3 years |
|
Plot Purchase + Construction |
Up to 2 years |
|
Renovation/Repair |
Until completion |
|
Direct Purchase |
No holiday period |
|
Category |
Minimum Age |
Maximum Age |
|
At Application |
18 years |
No maximum |
|
At Loan Maturity |
- |
70 years |
|
NRI (Plot Loan) |
- |
50 years (application) |
|
NRI (Plot Loan Maturity) |
- |
60 years |
|
Category |
Minimum Experience |
Eligibility |
|
Salaried (Govt/PSU/MNC) |
2 years total |
Eligible |
|
Salaried (Others) |
3 years total |
Eligible |
|
Self-Employed/Business |
3 years |
Eligible |
|
Professionals |
3 years practice |
Eligible |
|
Pensioners |
N/A |
With adequate repayment capacity |
|
Govt Servant Spouse |
N/A |
Special category |
|
Gross Annual Income |
Required NTHP |
|
Up to Rs. 15 lakh |
Minimum 40% of gross income |
|
Above Rs. 15 lakh |
Minimum Rs. 50,000 per month |
|
After Proposed EMI |
Minimum Rs. 20,000 remaining |
|
Category |
Maximum Loan Formula |
|
Salaried |
60x Gross Monthly Income OR 36x Gross Monthly Income |
|
Salaried (Alternative) |
60x Net Monthly Income (whichever is higher) |
|
Additional Income |
Spouse/adult children income can be clubbed |
|
Parameter |
Requirement |
|
Employment |
Gainfully employed abroad |
|
Contract Period |
Minimum 3 years remaining |
|
Regular Income |
Monthly income required |
|
Age Limit (Plot Loan) |
Max 50 years at application |
|
Maturity Age (Plot Loan) |
Max 60 years |
|
Parameter |
Details |
|
Purpose |
Purchase/construction of new house/flat, renovation, extension |
|
Eligibility |
Resident Indians, NRIs |
|
Interest Rate |
8.15% - 10.55% p.a. |
|
Loan Amount |
Based on NTHP criteria |
|
Tenure |
Up to 30 years |
|
Holiday Period |
Up to 18 months (construction) |
|
Women Concession |
Available |
|
Parameter |
Details |
|
Purpose |
Purchase, plot purchase, renovation, extension |
|
Target |
FAQs Related to Home Loans
Written by Ramandeep Sadana, Experienced Home Loan Advisor from last 10+ years
| Aspect | Details |
| Typical Disbursement Time | 3 to 10 days after submission of all required documents and completion of formalities. |
| Factors Affecting Timeline | - Complexity of the loan application- Property verification process- Financial profile of the applicant |
| Steps to Expedite Process | - Ensure complete and accurate documentation- Respond promptly to bank queries- Maintain clear communication with the loan officer |
| Additional Notes | Timeline may vary depending on the specifics of the loan and applicant. Regular follow-ups with SBI are recommended. |
Home Loan Reviews
| Component | Details |
| Formula | EMI = P×r×(1+r)n / (1+r)n−1 |
| Components Explained | P = Principal loan amountr = Monthly interest rate = (Annual interest rate ÷ 12 ÷ 100)n = Loan tenure in months |
| Example Inputs | Principal (P): ₹50,00,000Annual Interest Rate: 8.50%Loan Tenure: 20 years |
| Converted Inputs | Monthly Interest Rate (r): 8.50% ÷ 12 = 0.007083 (decimal)Loan Tenure in Months (n): 20 × 12 = 240 months |
| Example EMI | EMI = ₹43,391.43 |
Amortization Schedule (First 12 Months):
| Month | Principal (₹) | Interest (₹) | EMI (₹) | Outstanding Balance (₹) |
| 1 | 7,108.57 | 36,282.86 | 43,391.43 | 49,92,891.43 |
| 2 | 7,159.12 | 36,232.31 | 43,391.43 | 49,85,732.31 |
| 3 | 7,209.89 | 36,181.54 | 43,391.43 | 49,78,522.42 |
| 4 | 7,260.88 | 36,130.55 | 43,391.43 | 49,71,261.54 |
| 5 | 7,312.09 | 36,079.34 | 43,391.43 | 49,63,949.45 |
| 6 | 7,363.52 | 36,027.91 | 43,391.43 | 49,56,585.93 |
| 7 | 7,415.17 | 35,976.26 | 43,391.43 | 49,49,170.76 |
| 8 | 7,467.04 | 35,924.39 | 43,391.43 | 49,41,703.72 |
| 9 | 7,519.13 | 35,872.30 | 43,391.43 | 49,34,184.59 |
| 10 | 7,571.45 | 35,820.98 | 43,391.43 | 49,26,613.14 |
| 11 | 7,624.00 | 35,769.43 | 43,391.43 | 49,18,989.14 |
| 12 | 7,676.76 | 35,717.67 | 43,391.43 | 49,11,312.38 |
