Indian Bank Mortgage Loan or Loan Against Property

Indian Bank offers Loan against Property/ Mortgage Loan for any kind of personal, professional or business needs and purposes including repairs/ renovation of home, wedding, education of children, foreign trip, medical emergency, purchase of asset, working capital need for business, business expansion, etc. Indian Bank provides customised Loan against Property solutions, best-in-class services and simplified loan process. It offers competitive, attractive and affordable interest rates on Loan against Property/ Mortgage Loan.

Indian Bank Loan Against Property Interest Rates

ParametersDetails
Interest Rate 12.25%
Max. Age of Applicant 60 years
Minimum Income25000
Max. Loan Amount20000000
Max. Loan Tenure7 Years
Work Experience3 Years
Credit Score650 and above
SecurityEquitable mortgage of the property in question

Why Indian Bank Loan against Property?

  1. Indian Bank provides Loan against Property at an attractive interest rate for different needs of customers
  2. Interest is calculated on a daily reducing basis
  3. It has PAN India branch network provides easy access to the customers
  4. Quick & Hassle-free processing
  5. Easy and fast approval & disbursal of Loan against Property
  6. It provides Flexible Repayment Options to the borrowers
  7. Has dedicated team of well-experienced employees
  8. Transparent process with no hidden charges
  9. Offers loan upto 70% of property value

Indian Bank Mortgage Loan Fees & Charges

Type of ChargeAmount
Processing Fees1.178%
Part prepayment ChargesPart prepayment can be done after 6 months from date of first disbursement. One payment allowed every financial year. Can be upto 5% of outstanding loan.
Foreclosure ChargesPrepayment with own sources-Nil, prepayment with refinance-2.30%
Stamp Duty (Facility documentation & Property) plus RegistrationAs per actual
Legal, repossession and incidental ChargesAs per actual
Insurance PremiumAs per actual
Creation of charge with ROCAs per actual
Customer Credit Information Report (Credit Bureau)May be Rs. 200 per report individual customers & Rs.750 per report for non-individual customers
Facility cancellation chargesMay be upto Rs. 2000 plus GST plus interest charges from disbursement date upto cancellation request
EMI cycle changeUpto Rs. 500 plus GST
NOC Issuance ChargesUpto Rs. 500 plus GST (Nil for first NOC)
Cheque bounce ChargesUpto Rs. 500 plus GST
Late payment ChargesUpto 3% per month
Cheque swap ChargesUpto Rs. 500 plus GST

Indian Bank Mortgage Loan Eligibility

  1. Age: Age of the applicant should be 18 to 60 years while applying for Loan against Property.

  2. Minimum Income: Loan against Property is generally availed by salaried and self employed individuals to meet their personal and business requirements. Consistent income of the borrower plays a vital role in deciding borrower's eligibility for the loan. Minimum income of the borrower should be atleast Rs. 25000 to avail Indian Bank Loan against Property.

  3. Minimum Work/ Job/ Business experience & Stability: Lenders are always watchful for how long you are in your current assignment/ job/ business. For applying for Indian Bank Loan against Property, you must have work experience of atleast 3 Years with a regular income.

  4. Credit Score: Credit score shows the capability of loan repayment. Credit score ranges between 300 and 900. If you carry a decent credit score then you will get LAP comfortably with minimal documentation. You should carry good credit score i.e. 650 or above to avail Indian Bank Loan against Property.

  5. Property Value: Property value is a significant factor in determining your eligibility for LAP. In your loan eligibility process location and type of property matter significantly. Whether the property is located in metro, urban or rural area and whether it is residential, commercial or industrial property, all these points are considered by the lender in detail. Hence, you should be very careful about deciding about which property to be mortgaged for getting LAP.

Indian Bank Mortgage Loan Documents Required

PointSalaried CustomersSelf Employed ProfessionalsSelf Employed Businessman
FormApplication form with photographApplication form with photographApplication form with photograph
Processing fee chequeProcessing fee chequeProcessing fee chequeProcessing fee cheque
Proof of IdentityVoter ID card/ Driving license/ PAN card/ Photo credit card/ Employee ID card/ Defence or Police or Government department ID cardVoter ID card/ Driving license/ PAN card/ Photo credit card/ Employee ID card/ Defence or Police or Government department ID cardVoter ID card/ Driving license/ PAN card/ Photo credit card/ Employee ID card/ Defence or Police or Government department ID card
Proof of ResidenceBank account statement/ Latest electricity bill/ Latest mobile/telephone bill/ Latest credit card statement/ Latest LIC policy/insurance premium receipt/ Employers letter certifying the current mailing addressBank account statement/ Latest electricity bill/ Latest mobile/telephone bill/ Latest credit card statement/ Latest LIC policy/insurance premium receipt/ Employers letter certifying the current mailing addressBank account statement/ Latest electricity bill/ Latest mobile/telephone bill/ Latest credit card statement/ Latest LIC policy/insurance premium receipt/ Employers letter certifying the current mailing address
Proof of IncomeForm 16Last 3 years Income Tax returns (self and business) & Last 3 years Profit /Loss and Balance SheetBusiness profile, Last 3 years Profit /Loss and Balance Sheet & Last 3 years Income Tax returns (self and business)
Bank StatementLast 6 months bank statementsLast 6 months bank statementsLast 6 months bank statements (self and business)
Guarantor formOptional, varies from lender to lenderOptional, varies from lender to lenderOptional, varies from lender to lender

Indian Bank Mortgage Loan Interest Rate

Interest rate is the major cost of your loan which you need to pay on your outstanding loan amount till the end of your loan tenure. It is very important to compare interest rates on LAP offered by all the available banks before selecting the bank from which you want to opt for LAP.

Indian Bank offers Mortgage loan at the interest rate of 12.25% which is quite attractive. You are free to negotiate on interest rate provided you are carrying good Credit Score, Healthy Repayment History and Regular Income. Once you avail LAP, you need to repay the loan alongwith interest in the form of Equated Monthly Instalment (EMI) every month till the tenure of the loan. The EMI comprises of the principal and interest components.

If you are currently paying higher interest rate on LAP availed from any other bank than interest rate on LAP offered by Indian Bank, you can opt for balance transfer of loan to Indian Bank.

Indian Bank Mortgage Loan Amount

The decision of the loan amount what you want to apply for depends upon your requirement of funds, your income and repayment capability. Indian Bank Loan against Property loan amount ranges from a minimum of Rs. 1000000 to a maximum of Rs. 20000000.

It is not necessary that whatever loan amount your are applying for is easily extended to you by the bank. Bank will first calculate your eligibility for taking that loan amount during its loan approval process and then only decide upon the loan amount as per your eligibility and will offer you.

Indian Bank Mortgage Loan Tenure

Loan Tenure is a period for which you have availed the loan. You need to repay full loan and interest thereon during this period. Loan tenure also depends upon your age. Lower your age, higher loan tenure you can apply for .

Higher the tenure, lower the EMI and vice-versa. Indian Bank offers Loan against Property for a maximum tenure of 7 Years.

Other Important Points related to Indian Bank Loan against Property/Mortgage

  • Eligibility
    1. Permanent Employees of Central / State Govt. / Quasi Govt. Bodies / Public Limited Companies / reputed Private Limited Companies with clear record of paying timely salaries. Employees of Indian Bank and other Banks (PSU / Private / Foreign / Co-op) are also eligible
    2. Applicant should have minimum completed service of 3 years
    3. Self employed / Professionals / Traders / Businessmen including HUF, Sole Proprietary concern, Firms and Limited companies are eligible based on their income level and cash flow
    4. NRI customers are also included subject to the condition that the end use is for bankable purpose, as permitted by RBI
  • Margin:
    1. 40% of the Realisable Sale Value of the immovable property offered as security -if property is situated in Tier-I & II cities
    2. 50% in case of properties situated in other places
  • Security
    1. Equitable Mortgage of Property offered as security
    2. Equitable Mortgage to be registered (at Applicant's cost) if there is a provision for the same in the State where property is located
    3. Mortgage Loan against Agricultural property or disputed property / property attached by Income Tax authorities not allowed

7 Things to Know Before Applying for Mortgage Loan/ Loan Against Property (LAP)

(1) Do you really require funds?

You must ensure as to do you really require funds through LAP or it can be managed with savings or other investments made by you in pace of taking Loan Against Property (LAP).

(2) No Tax Benefit

Unlike Home Loan, no tax benefit is allowed under Loan Against Property (LAP). Under Home Loan, you get tax benefit in repayment of principal as well as interest thereon.

(3) Do proper homework to select best lender

You need to do proper research in finding out the best lender from which you should opt for Mortgage Loan/ Loan Against Property (LAP). You can do so by comparing various lenders offering LAP on the basis of major components such as interest rate, loan amount offered, terms of loan, service, etc. It is very important thing to select the best lender before applying for LAP.

(4) Go through the Loan Agreement Carefully

You should read the loan agreement very carefully as all the terms of loan are mentioned in the loan agreement and in case of any dispute, this loan agreement is referred to by the lender.

(5) Be ready with all the Documents Required

Before applying for LAP, you must keep all the required documents ready with you which are needed for availing LAP. In absence of any of such documents, lender may decline extending loan to you.

(6) Check your Credit Score First

You should check your credit score beforehand. Applicants with good credit score have more chances of their loan approval in faster manner. Good credit score (more than 750) will enable you negotiate with the lender on various terms of loan such as interest rate, loan amount, processing fee, other charges, etc.

(7) Loan Eligibility Matters a lot

Have you checked your loan eligibility before applying for the LAP? There are tools like "Check Loan Eligibility", "Loan Eligibility Calculator", etc. available on lender's website through which you can check your loan eligibility.

Mortgage/ Loan against Property EMI Calculator

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