Last Updated on 24/07/2017
Housing Loans - Subha Gruha

 
 
Eligibility
Groups of individuals
Members of Co-operative Societies
Individuals not more than 55 years of age.However Individuals may be considered at the age of 60 provided their legal heirs  join along with them.
Loan must be liquidated before attaining 70 Years of age. 
For salaried individual:
A permanent job with a minimum of 2 or 3 years service
For self-employed professional:
A minimum period of three years of activity in the related field

Purpose 
To buy, build or renovate flat/house. 

Quantum of loan 
75% to 90% of the cost of the house/flat excluding Registration and Documentation charges. The amount depends on your age and repayment capacity. Up to 30% of the loan amount given for purchase of plot.

Margin  
Margin  ranges from 10% to 25% of the estimated cost (including the cost of the land) for new as well as old houses/flats, depending upon the loan quantum. 

Rate of interest 
Please click Retail credit interest rates

Repayment

Repayable in equated monthly installments for a maximum period of 30 years.


No Pre payment charges.

Holiday period 
A maximum holiday period of 18 months from the date of first disbursement or completion of construction - whichever is earlier. 
In case the house is purchased, the holiday period is  3 months. 

Security 
First mortgage on the property to be bought, constructed or renovated
The land should be in the applicant's name or jointly with spouse who should be a co-obligant
Should have a clear and marketable title over the property
should have comprehensive insurance on the property for adequate value
Additional security in the form of NSC, LIC, Units of UTI will also be accepted
 
Processing charges 
Please click here for Processing Charges

Documents required
An application form Salary certificate as a proof of income (for employed individuals) Proof of income (for professionals, business people etc.) Agreement for sale of house/flat.
Proof of membership (for co-operative societies etc.)
Proof for experience in the line of activity (for professionals, business people etc.)
Estimates for Construction/Valuation Report for Acquisition/Legal opinion on the Property from Bank approved Engineer/Lawyer.
Download the application form.Save it on your computer, print it out and send it to the nearest/convenient IOB branch for Processing  
While all efforts have been made to update the information, constituents are requested to contact the branches for latest details.