Salaried applicants must be between 21 and 60 years old at loan maturity, while self-employed applicants can be up to 70 years old. The minimum net monthly income for salaried borrowers is ₹25,000, and self-employed applicants must show a minimum annual profit of ₹3 lakh.
- Applicants must be Indian citizens and residents; NRIs are not eligible for Loan Against Property at IOB as of 2026.
- Salaried individuals must be at least 21 years old and not exceed 60 years at the end of the loan tenure.
- Self-employed applicants must be between 25 and 70 years old, with business continuity considered for longer tenures.
- Minimum net monthly income required for salaried borrowers is ₹25,000 (as per 2026 eligibility norms).
- Self-employed applicants must demonstrate a minimum annual net profit of ₹3 lakh in their latest audited financials.
- Applicants must have a minimum of 2 years in current employment or business, with at least 1 year of stability for salaried roles.
- CIBIL score of 700 or higher is required for eligibility, consistent with IOB's credit risk policy in 2026.
Meeting these criteria ensures faster processing and higher loan approval chances at Indian Overseas Bank.
Proof of Identity: Acceptable documents include Aadhaar card, passport, or voter ID. These must be government-issued and valid (Source: iob.bank.in). Proof of Address: Utility bills (electricity, water, or telephone) not older than two months, rental agreement, or Aadhaar card. The document must reflect the current residential address. Proof of Income (Salaried): Latest 3 months' salary slips and Form 16. For salaried applicants, banks verify gross monthly income of at least ₹25,000 as per 2026 eligibility norms. Proof of Income (Self-Employed): Audited financial statements for the last 2 years and ITR copies. Minimum annual profit of ₹3 lakh is required for eligibility. Employment Proof: For salaried individuals, a valid employment letter or ID card from the employer. For self-employed, a business registration Certificate or GSTIN copy is mandatory. Property Documents: Title deed, sale agreement, property valuation report, and approved building plan. These establish clear ownership and market value for Loan-to-Value (LTV) calculation up to 70%. Bank Statements: Personal and business account statements for the last 6 months. Required to assess repayment capacity and financial stability. NRIs must submit overseas income proof, NRE/NRO account statements, and a valid power of attorney if applicable.
1. The IOB Loan Against Property application process takes 7–10 working days upon submission of complete documents.
2. Applicants must submit proof of identity, address, income, employment, and property documents to initiate the LAP application.
3. IOB verifies applicant creditworthiness using CIBIL scores, with a minimum cutoff of 700 recommended for approval.
4. A site inspection of the mortgaged property is conducted by IOB's technical team within 2–3 working days of application.
5. Loan sanction is issued within 3–5 days post-document verification and property valuation approval.
6. Processing fees up to 3.54% of the loan amount are payable at the time of sanction, with documentation charges up to ₹2,360.
7. Final disbursement occurs within 1–2 days after registration of the mortgage deed and fulfillment of all conditions precedent. The entire process is managed through designated IOB branches with dedicated LAP relationship officers.
| Bank | Interest Rate Range (2026) | Max Loan Amount | Max LTV Ratio | Processing Fee | Max Tenure |
| Indian Overseas Bank (IOB) | 12 – 12 | ₹10 crore | 50% | 0.62% of loan amount | Up to 20 years |
| IDFC FIRST Bank | 12 p.a. Onwards | ₹15 crore | 70% | Not specified | Up to 25 years |
| Canara Bank (Canara Mortgage) | 12 p.a. | ₹10 crore | 70% | Not specified | Up to 15 years |
| State Bank of India (SBI) | 12 p.a. | ₹5 crore | 90% | 0.35% (max ₹10,000) | Up to 30 years |
| HDFC Bank | Approx. 12 p.a. | ₹7.5 crore | 80% | 0.50% (up to ₹75,000) | Up to 30 years |
| Kotak Mahindra Bank | Approx. 12 p.a. | ₹10 crore | 75% | 0.50% (min ₹10,000, max ₹1 lakh) | Up to 20 years |
| Axis Bank | Starting 12 p.a. | ₹10 crore | 75% | 0.50% (min ₹9,999) | Up to 20 years |
| IndusInd Bank | 12 p.a. Onwards | ₹10 crore | 70% | 0.50% (min ₹10,000) | Up to 18 years |
| Bank of Baroda | 12 p.a. | ₹7.5 crore | 80% | 0.25% (min ₹2,500, max ₹25,000) | Up to 20 years |
| ICICI Bank | 12 p.a. Onwards | ₹10 crore | 75% | 0.50% (min ₹10,000) | Up to 25 years |
| Bank of India | 12 p.a. | ₹5 crore | 70% | 0.50% (max ₹25,000) | Up to 20 years |
| RBL Bank | 12 p.a. Onwards | ₹5 crore | 60% | 1.00% (min ₹10,000) | Up to 15 years |
IOB offers the lowest LTV at 12, making IT less aggressive than private lenders like HDFC and SBI, which offer up to 80–90% LTV for eligible borrowers. IOB allows Loan Against FD up to 90% of the deposit amount, with no processing fee. This margin of 10% applies to FDs with less than 4 years of residual maturity. The facility is also available for minors through their competent guardians, accessibility for families. IOB offers specialized LAP products like **Liquirent (Loan Against Rent Receivables)** and **Easy Trade Finance**, catering to self-employed professionals and businesses needing working capital. These structured solutions support diverse income streams beyond salaried profiles.
Key Takeaways
- IOB's Loan Against FD allows borrowing up to 90% of deposit value, with no processing fees and eligibility extended to minors via guardians.
- The bank offers niche LAP variants like Liquirent (against rent receivables) and Easy Trade Finance, serving self-employed and business borrowers with structured cash flow needs.
- IOB provides multi-product access including MSME, personal, and pension loans, enabling bundled financial planning for existing customers.
Check eligibility and apply at www.iob.bank.in
