A PROJECT REPORT ON

“HOME LAONS PROVIDED BY INDIAN BANK”

SUBMITED TO SAVITRIBAI PHULE PUNE UNIVERSITY

SUBMITTED BY
ALFIYA ASHRAF ALI SHAIKH
IN PARLIAMENT FULFILMENT OF
BACHELORS OF BUSSINESS ADMINISTRATION
TY.BBA(IB). SEM V
UNDER THE GUIDENCE
OF
PROF. Mr. Rohit Akolkar

PRATIBHA COLLEGE OF COMMERCE AND COMPUTER STUDIES.

CHINCHWAD PUNE.
ACADEMIC YEAR.
2023-2024
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 Kamala Education Society’s
Pratibha College of Commerce And Computer Studies,
Chinchwad, Pune-411019

CERTIFICATE
This is to clarify that Ms. Alfiya Shaikh of TY BBA-(IB) Roll No. 9984 having
specialization in FINANCE has successfully Completed her COMPUTER BASED
ACTIVITY on Home Loans Provided Indian Bank as per the norms of Savitribai
Phule Pune University Under the guidance of Mr. Rohit Akolkar for academic year
2023-2024.

______________ _______________ _______________

Prof. Hanumanta Koli Mr. Rohit Akolkar External Examiner
(Program Coordinator) (Internal Examiner)

Date- / /2023
Pune- Chinchwad

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 ACKNOWLEDGEMENT

My sincere thanks to Pratibha College of Commerce and Computer Studies,

Chinchwad Pune (Affiliated with Savitribai Phule Pune University-SPPU) for
giving me a chance to be a part of this project.

I thank all the teaching and non-teaching staff of Pratibha College of Commerce
and Computer Studies, Chinchwad Pune for providing access to valuable
information, library books, computer labs, and other resources gracefully, I take
this opportunity again to thank all the supporting stakeholders not mentioned above
who have contributed directly or indirectly to complete this project with great
success.

Sincerely ,
Ms. Alfiya Shaikh.

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 HOME LOANS PROVIDED BY INDIAN BANK

Home loans are one of the most common types of loans offered by banks in India. Indian banks
offer home loans to people who want to buy a house or build a new one. These loans are also
offered to those who want to renovate or repair an existing house. Home loans are a popular
choice among people in India due to the increasing demand for housing and the high cost of
purchasing a home. Indian banks offer home loans with different interest rates, repayment
periods, and other terms and conditions. The interest rates on home loans in India vary depending
on the bank, the loan amount, the repayment period, and the creditworthiness of the borrower.
Banks usually offer home loans with interest rates ranging from 6.5% to 12%.

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The repayment period for home loans in India can be up to 30 years, depending on the bank and
the borrower's preference. Indian banks require borrowers to meet certain eligibility criteria to be
eligible for a home loan. These criteria include age, income, credit score, and employment status.
Banks usually require borrowers to be between the ages of 18 and 65 years to be eligible for a
home loan. The borrower's income and credit score are also important factors that determine
eligibility for a home loan. The borrower must have a stable source of income and a good credit
score to be eligible for a home loan. The documentation required to apply for a home loan in
India includes proof of identity, address, income, and employment. The borrower must provide a
copy of their Aadhaar card or PAN card as proof of identity and address. They must also present
documentation of their employment and income, such as pay stubs, bank statements, and tax
returns. Fixed-rate, floating-rate, and hybrid home loans are among the options that Indian banks
provide for mortgages. Home loans with fixed rates have a fixed interest rate for the duration of
the loan, while floating-rate home loans have an interest rate that fluctuates based on market
conditions. On the other hand, hybrid home loans have a set interest rate for a predetermined
amount of time, after which it switches to a floating rate.
In addition to these types of home loans, Indian banks also offer special home loan schemes
tailored for different categories of borrowers, such as women, senior citizens, and government
employees. These schemes often come with lower interest rates and more relaxed eligibility
criteria compared to regular home loans. Home loans are a popular choice among people in India
who are looking to purchase or construct a house. Banks in India provide home loans with
varying interest rates, repayment periods, and other terms and conditions. To be eligible for a
home loan, borrowers need to meet specific eligibility criteria and provide the necessary
documentation. Banks also offer special home loan schemes for different categories of
borrowers, such as women, senior citizens, and government employees. It's important to
understand the different types of home loans and their terms before choosing the right one for
your needs.

KEYWORDS:
HOME Loans, Low-interest rate, Eligibility criteria, Repayment tenure, Tax benefits.

Methodology
The secondary data considered for the purpose along with observations about the industry

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INTRODUCTION
Indian Bank is a public sector bank that was established in the year 1907 and is headquartered in
Chennai, Tamil Nadu, India. It is one of the oldest banks in the country, and its operations are
spread across the length and breadth of India. Indian Bank has a pan-India presence, with a
network of more than 3300 ATMs and over 2900 branches. The bank has a strong customer base
of over 100 million, and It provides a variety of banking services and products to its clients.
Indian Bank has been at the forefront of the banking industry in India, and It has been crucial to
the expansion and development of the Indian economy. Over the years, the bank has adopted the
latest technology and innovative practices to offer world-class banking services to its customers.
It has also been recognized for its excellence in various areas, such as customer service,
technology, and financial performance. In this research paper, we will focus on home loans
offered by Indian Bank. We shall examine the various home loans that the bank offers, the
eligibility criteria, the interest rates, the repayment tenure, the documentation required, the tax
benefits, the online application process, loan disbursement, EMI calculation, prepayment and
foreclosure, default and repossession, and additional important characteristics of the home loans
provided by Indian Bank. By the end of this research paper, The numerous elements of Indian
Bank's home loans will be clearly understood by the readers and will be able to make an
informed decision regarding their home loan requirements.

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Features of Indian bank Home Loans

 Home loans from Indian bank can be taken for purposes of purchasing a
property/flat/house or to purchase a plot of land. If someone wants to renovate or
refurbish the old house, they can also avail a home loan from Indian bank.
 Age eligibility to apply for Indian bank home loan is between 18-70 years.
 They can grant you a loan amount of up to Rs. 500 lakhs from a minimum amount of
Rs. 15 Lakhs for your application of home loan with a processing fee of only 0.230%
of the loan amount not exceeding Rs. 20470
 They grant you maximum 30 years of tenure to repay the home loan taken for a new
house/property (18 months of holiday period allowed for 30 years of tenure). They also
offer 120 Months for the repayment of the amount taken for the renovation of the
house.
 No prepayment charges are levied by the Indian bank.
 Indian bank provides attractive home loans with affordable interest rates and flexible
repayment EMIs options with a vacation period as an additional feature of it.
 They provide you amount up to Rs. 500 lakhs as a home loan.
 The maximum tenure allowed for a customer to repay his/her loan is 30 years.
 They provide you with quick offline as well as online guidance to make your
application ready for approval by the bank’s administration, they are known for great
customer assistance for Home loans.
 An applicant must meet the criteria provided by the bank such as income, type of
employment, age and decent CIBIL report to become eligible for taking home loans
from them. Even NRIs and PIO are eligible to enrol in this scheme.
 They provide you home loans to buy a new property/flat/plot or to construct a house
on a plot.
 Indian bank home loans are also used for renovating or refurbishing your old house
which leads to value addition of that old house which can be used in the future for a
better price for the house while selling it. Up to Rs. 10 Lakhs is allowed for this
specific purpose by Indian bank home loans.
 Refinance an existing home loan from some other bank is also possible by applying for
a home loan at Indian bank with approvals from authorities.
 Indian Bank provides zero Prepayment fees against prepayment of the loan amount
before the expiration of loan repayment tenure.
 They provide the lowest processing fee per application, so it is assuring for the
applicant.

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Housing in India

The housing is one of the basic needs of the people as it ranks next to food and
clothing.
A certain minimum standard of housing is essential for a healthy and civilized living. Thus, the
priority has to be given for the development of housing in a country. The human settlements
have a lot of impact on environment. It is a tool for modern economic development. The census
records of India exhibits that there was no deficit-housing problem in India till the first half of
the century. In 1901, there were 55.8 million houses for 54 million households showing a surplus
of 1.8 million houses. This surplus situation continued till 1941. It was only after 1951, the
deficit trend has started and is continuing with an escalating magnitude. In 1971, total number of
households was 100.4 million and the number of houses was 90.7 million, showing a deficit of
9.7 million. The housing shortage in 1991 was about 31 million units. The housing shortage
during 2001 was 41 million. The estimated housing stock requirement in the country by 2021 is
about 77 million in urban areas and 63 million in rural areas.
The increasing number of houses and a rising trend in the size of the households has contributed
to the shortage of housing stock in the urban areas. Only 20% of the Indian population lived in
urban areas in 1970 (UNDP 1998). The urbanization is expected to increase still. This resulted in
an estimation of 36% of the population to live in urban areas by 2015.
In India, there is a very widening gap between the supply and demand for housing. There is an
urgent need to modify the policy on one hand and look for an innovative approach for
construction of houses on the other to reduce the deficit. The Government of India(GoI) had
introduced schemes and projects for housing problem in every five year plans. The National
housing Policy formulated by government of India takes into account the developments
on
national and international scene on shelter sector. The adoption of National Housing Policy by
the Parliament in 1994 was a landmark step in promoting housing development in the country.

The policy in its endeavor has reduced deficit of housing to some extent. It envisages a major
shift in the Government‟s role towards being a facilitator rather than provider.
The working group on urban housing for the ninth plan gave a thrust to housing development an
targeted construction of 8.87 million housing units. The National Housing and Habitat Policy
1998 emphasized housing for all by the end of 2007 (Peter D F Cardozo). This would have bee n
achieved with the help of public and private firms and corporate sectors. The rapid urbanization
and a changing socio-economic scenario led to a greater demand for housing. This led to an
exponential growth in housing finance market.

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Evolution of Home Loan

Home Loan plays a vital role as an engine of equitable economic growth through the reduction of
poverty and prevents slum proliferation in economy. The demand for housing is
increasing rapidly day by day. Therefore, to meet with the growing housing demand is the
aim of the government. To achieve this aim it is required to provide the loan for housing to the
people. The liberalization of the financial sector of the economy has also become possible by the
housing finance.
Home Loan is the funds buyer has to borrow usually from a bank or other financial institutions to
purchase a property, generally secured, by a registered mortgage to the bank over the property
being purchased. A mortgage loan is a debt owed on a home, the mortgage rate is the interest rate
charged to the home owner for the use of the loan. Home loan is a broad topic, the concept of
which may vary across lands, regions and countries, particularly in terms of the areas it covers.
For example, what is understood by the term “home loan” in a developed country may be very
different from what is understood by the term in a developing country.
The International Union for Housing Finance, as a multinational networking organization, has no
official position on what the best definition of housing finance is. However, the selection of
quotes below is offered as a snapshot of what housing finance as a topic covers:
“Housing finance brings together complex and multi-sector issues that are driven by constantly
changing local features, such as a country’s legal environment or culture, economic makeup,
regulatory environment, or political system.” –

In addition, the concept of housing finance and housing finance systems has been evolving over
time. Looking at definitions from the mid-1980s, the housing finance was defined primarily in
terms of residential mortgage finance:

“The purpose of a housing finance system is to provide the funds which homebuyers need to
purchase their homes. This is a simple objective, and the number of ways in which it can be
achieved is limited. Notwithstanding this basic simplicity, in a number of countries, largely as a
result of government action, very complicated housing finance systems have been developed.
However, the essential feature of any system, that is, the ability to channel the funds of investors
to those purchasing their homes, must remain.” –

Mark Boleat

In more recent years, a number of much wider definitions have appeared:-

“Put simply, housing finance is what allows for the production and consumption of housing. It
refers to the money we use to build and maintain the nation’s housing stock. But it also refers to
the money we need to pay for it, in the form of rents, mortgage loans and repayments.” –

Peter King

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Importance of Home Loan

The need for home loans arises

not because property prices are
heading upwards all the
 The need for home loans arises not because property prices are heading upwards all the
time but because home loans make great sense from a long-term savings perspective. Not
only are home loans a handy tool for the common man to own a roof over his head but
they also help to save money in the long run.

 With skyrocketing real estate prices, people are increasingly opting for housing loans to
 With skyrocketing real estate prices, people are increasingly opting for housing loans to
acquire their dream home. Interest rates are coming down all the time and the banks and
the housing finance companies are literally falling over each other to lure the prospective
home-seekers.
 Notwithstanding the tax breaks and generous lending rates, a lot of people still cannot

 Notwithstanding the tax breaks and generous lending rates, a lot of people still cannot

products called „zero down

payment loans‟ wherein 100 per
cent funding is provided for

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products called „zero down
payment loans‟ wherein 100 per
cent funding is provided for
products called „zero down payment loans‟ wherein 100 per cent funding is provided for
for loans.
 Even if one can afford to buy a home with one's own money, home loans should be

 Even if one can afford to buy a home with one's own money, home loans should be
availed because they act as good savings instrument. According to industry estimates, the
long term average return in investing in a home is about 20% p.a. while the average cost
of borrowing funds in the market today is about 7% p.a. (considering all tax breaks).
 For salaried employees, housing loans are the best way to avail of tax benefits. Many

 For salaried employees, housing loans are the best way to avail of tax benefits. Many
people simply go for the home loans in order to avail these benefits. Interest payments up
to 2.0 lakh on housing loans are deductible from the taxable income and there is a further
deduction of taxable income maximum up to 1.5 lakh against repayment of principal
portion per annum. In case a person stays in a rented house, the cost of the loan will be
nearly zero percent since he will be saving a decent amount on ren

Indian Bank Home Loan

Indian Bank offers home loans for both resident Indians and Non-Resident Indians (NRIs) at
attractive rates starting from 8.50% p.a. You can extend the tenure to 30 years. The applicable
processing fee is 0.23% of the loan amount.

Indian Bank Home Loan Schemes

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IB Home Loan

 Attractive rates starting from 8.50% p.a.

 Interest concession for women applicants
 The Maximum tenure of 30 years
 Zero prepayment charges

Interest Rate 8.50% p.a. to 9.90% p.a.

Processing Fee 0.23% of the loan amount

Indian Bank Home Loan EMI Calculator

It's always advised to calculate your EMI (Equated Monthly Instalment) and processing fee
beforehand so that you can manage your finances in a better way. That way, you will be able to
compare home loan interest rates and schemes offered by other financial institutions.

In order to that, you can use BankBazaar Indian Home Loan EMI Calculator. The entire process
is quite simple and hassle-free with a quick turnaround time. All you need to do is enter
your home loan details, including the amount, tenure, interest rate, and processing fee. Hit
"calculate" to check the EMI and processing fee. This will be followed by an amortisation table
giving you a complete breakdown of your payment schedule.

Indian Bank Home Loan Eligibility Criteria

Age 18 years to 70 years

Type of Employment Salaried or self-employed

Nationality Indian or NRI

*Types of Home Loan*

Various types of home loans are available in India. They are described below:-

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Home Purchase Loan
 Home Purchase Loan
These are the basic home loans for the purchase of a new house. These loans are given for
purchase of a new or already built flat/bungalow/row-house.
 Home Improvement Loan

 Home Improvement Loan

These loans are given for implementing repair works and renovations in a home that has already
been purchased by the customer. It may be requested for external works like structural repairs,
waterproofing or internal works like tiling and flooring, plumbing, electrical work, painting, etc.
 Home Construction Loan

 Home Construction Loan

These loans are available for the construction of a new home. The documents required by the
banks for granting customer a home construction loan are slightly different from the
home purchase loans. Depending upon the fact that when customer bought the land, the lending
party would or would not include the land cost as a component, to value the total cost of the
property.

Home Extension Loan

 Home Extension Loan

Home Extension Loans are given for expanding or extending an existing home. For example
addition of an extra room, etc. For this kind of loan, customer needs to have requisite approvals
from the relevant municipal corporation.
 Land Purchase Loan

 Land Purchase Loan

Land Purchase Loans are available for purchase of land for both home construction or
investment purposes. Therefore, customer can be granted this loan even if customer is
not planning to construct any building on it in the near future. However, customer has to
complete construction within tenure of three years on the same land.
 Bridge Loan

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  Bridge Loan

Bridge Loans are designed for people who wish to sell the existing home and purchase another.
The bridge loan helps finance the new home, until a buyer is found for the old home.
 Balance Transfer
Balance Transfer loans help customer to pay off an existing home loan and avail the option of a
loan with a lower rate of interest. Customer can transfer the balance of the existing home loan to
any another bank.
 NRI Home Loan

 NRI Home Loan

This is a special home loan scheme for the Non-Resident Indians (NRI) who wishes to build or
buy a home or land property in India. They are offered attractive housing finance plans with
suitable reimbursement options by many banks in the country.

The present study addresses the core issues of housing in India. Through this paper the drivers of
home loan, evolution and types of home loan are discussed will definitely help the readers for
better understanding the concepts of housing loan and accordingly the prospective customers can
approach the banks as per their need. Most of the time lack of knowledge of housing loan
products the customers could not take the benefit of the same. This can be taken care through this
paper

HOME LOANS
Home loans, also known as housing loans, are a type of loan taken by individuals to purchase or
construct a house or property. Home loans are long-term loans that typically have a repayment
tenure of 15 to 30 years. Home loans are secured loans, which means that the borrower has to
provide collateral in the form of the property being purchased or constructed. Home loans are an
important financial product in India, as a large number of people aspire to own a house or
property. In India, a number of financial institutions, such as banks, housing finance firms, and
non-banking financial corporations (NBFCs), offer home loans. These institutions offer a range
of home loan products with different interest rates, repayment tenures, and other features.

Drivers of Demand in Housing

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The housing demand is a product of three different variables. First and foremost is the primary
need that is driven by increasing population. Secondly, economic growth and consequent urban
migration have caused changes in preferences towards more nuclear families, causing a
perceptible lowering of the household size. Finally, increasing affordability has driven
households to invest in larger houses.

Increasing population:-Population growth has a direct bearing on the requirement for housing
units and, through this, on Floor Space Area (FSA) requirements.

Urbanisation:-Urbanisation has twin impact on housing demand. On one hand, it reduces the
area per household, and on the other, there is an increasing need for more nuclear
families, leading to the formation of more number of households.
a
Nuclearisation:-Nuclearisation refers to the formation of nuclear families from joint families.
Nuclearisation, like urbanisation, also has twin impact. It reduces the area per household, but
increases overall household formation, thereby increasing the demand for housing units.

Affordability:-There has been a steady movement of households into higher income categories.
The movement is more pronounced in the high-income categories

HOME LOANS OFFERS

To meet the various demands of its clients, Indian Bank provides a variety of home loan options.
The bank offers home loans for the purchase of a new house or property, construction of a new
house or property, renovation or repair of an existing house or property, and transfer of an
existing home loan to a new lender for better terms and conditions. The eligibility criteria for
availing a home loan from Indian Bank include age, income, credit score, and employment
status. The borrower should be between 18 and 70 years of age, and should have a regular source
of income. The bank also considers the credit score of the borrower while evaluating the loan
application. A good credit score increases the chances of loan approval and also helps in
negotiating better interest rates. Home loans from Indian Bank are available with both fixed and
adjustable interest rates.

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While variable interest rates are tied to the current market rates, fixed interest rates stay constant
throughout the loan's term and can vary over time. The interest rates offered by Indian Bank for
home loans are competitive and are subject to change from time to time.
The repayment tenure for home loans offered by Indian Bank can range from 1 year to 30 years,
depending on the borrower's requirements and financial situation. The bank also offers the
facility of part prepayment and full prepayment of the loan, subject to certain terms and
conditions.
The documentation required for availing a home loan from Indian Bank includes proof of
identity, proof of address, proof of income, and details of the property being purchased or
constructed. The bank may also require additional documents based on the loan amount and
other factors. Indian Bank offers an easy and hassle-free online application process for home
loans. The borrower can apply for a home loan through the bank's website or mobile application,
and can track the status of the application online. The bank also provides the facility of online
loan disbursement and EMI calculation. Indian Bank offers a range of home loan products with
competitive interest rates, flexible repayment tenures, and easy application and disbursement
processes. The bank's focus on customer service and technology has made it a popular choice
among home loan borrowers in India.

ELIGIBILITY CRITERIA

To avail a home loan from Indian Bank, the borrower needs to meet certain eligibility criteria.
Depending on the type of loan requested and the requested loan amount, the qualifying
requirements could change. The borrower should be an Indian resident and should be between 18
and 70 years of age at the time of loan application. The borrower should have a regular source of
income, which can be from employment or business. The bank also considers the borrower's
credit score while evaluating the loan application. A good credit score increases the chances of
loan approval and also helps in negotiating better interest rates. The borrower should also have a

16
stable employment history or business continuity at least for a minimum of two years. The bank
may require the borrower to submit income tax returns or bank statements as proof of income.
The borrower's debt-to-income ratio is also considered while evaluating the loan application In
addition to the above criteria, The borrower must also submit the required identification,
residence, income, and property information documents. The documents required may vary
depending on the loan amount and other factors.
It is important for the borrower to ensure that they meet the eligibility criteria before applying for
a home loan from Indian Bank. This will increase the chances of loan approval and also help in
availing better terms and conditions. To avail a home loan from Indian Bank, the borrower needs
to meet certain eligibility criteria related to age, income, credit score, employment history, and
documentation. The borrower should carefully evaluate their eligibility before applying for the
loan to avoid rejection of the loan application.

Age group
A person aged 18 years up to 70 years.

Following is a table which represents the eligibility required for Indian Bank Home loan

Eligibility criteria entities Indian bank required parameters

Age required for eligibility 18 – 60 years

The loan Amount one can apply for Rs. 15 Lakh to Rs. 5 Cr

Maximum loan granted against the property value Up to 90%

Maximum EMI calculated per month’s income Up to 65%

Eligibility Based on Age

While applying for a home loan, the age of the applicant holds great value in determining the
amount of loan that can be granted to him/her. This factor, coupled with the current income of
17
the applicant helps the bank to calculate exactly how much EMI he/she can pay. Therefore the
bank decides the total amount of loan that has to be given to the customer. It helps the bank as
well as the customer to ensure that the repayment scheme that they adopt is feasible and that the
chances of any complications regarding any future repayment are cut down to zero.
The minimum age required to avail home loans from Indian bank is 18 years and can apply for
the same till the age of 50. A person who has just joined the workforce and has relatively more
years to offer as an employee will get more principal amount of loan as well as more income-
friendly EMIs as compared to someone approaching the age of 50.

Eligibility Based on Income

This eligibility is concerned with the applicant’s income per month and determines the amount of
loan he/she can procure from the bank with age playing a good supporting role in this decision.
In principle, more income will fetch you more loan amount as your ability to pay the EMIs is
primarily dependent on this factor plus the age of the applicant.
The bank uses net income (after all the deductions) of the applicant as the means to determine
how much loan can be made available to the subject applicant.
To get a better understanding of how the income and age of the applicant, decide the loan
amount to be given. Let’s assume that there are 3 people each aged 25, wants to buy a house
which has the same base price of Rs. 40 lakhs and those 3 people do have salaries of Rs. 25,000,
Rs. 50,000 & Rs. 75,000 respectively. Now, the first person whose salary is Rs 25,000 will get
Rs. 25.93 Lakh to Rs. 36.78 Lakh. Similarly, the one who earns Rs. 75,000 will get Rs. 51.86
Lakh to Rs. 73.55 Lakh as the loan amount.
Nature of employment: The bank checks for your employment to ascertain what is your source
of income, is it a salary based or a self-employed one. Also, it looks at the experience you have
at your company, but luckily for Indian bank Home loans, it is not necessary to have experience
under your belt like other banks require you to do so.

Eligibility Based on Value of Property

As the industry norms dictate the property market, Indian bank will not pay the whole amount of
your purchased house but will instead pay LTV percentage amount against the total property/flat
value.

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Each home loan application is reviewed by the bank to see what is the total property value
mentioned in the submitted documents, and then as per the LTV percentage assigned for the
given property value, the loan amount is disbursed.
A person who puts an offer for a house of Rs. 30 lakhs or less will get an LTV amount of 90% of
the property’s total value as the loan amount from the bank. Similarly, A house worth between
Rs. 30 lakhs and Rs. 75 lakhs will get LTV amount of 80% against the total value of the subject
property. Above Rs. 75 lakhs, the applicant will get an LTV amount of 75% against the
property’s total value.
Two factors improving your eligibility
1. Adding a co-applicant in the agreement for your home loan will surely give the
banks assurance for the duly required repayments. A good score on his/her CIBIL
report ensures a hassle-free loan acquisition from the bank.
2. All the property papers should be produced before the bank for the validity of that
property as it directly improves your eligibility to acquire Indian bank’s Home
loans without any inconveniences.

Eligibility Based on CIBIL Score

As mentioned before briefly, a CIBIL report is maintained by the authorities who track your
past’s spending behaviour and also the payment of previous EMIs & credit card bills. The bank
needs to determine the innate nature of your financial activities. Each of the previous transaction
is noted down by the authorities at CIBIL to ensure other financial institutions to have a
comprehensive report about a customer’s financial inclinations. These reports tell a lot about
your ability to pay EMIs for the home loan on time; this information is vital for the Indian bank
to determine your application and whether to approve it or not. A higher CIBIL score puts your
application in the front position to get approved. The minimum CIBIL rating one can have is 650
points.

Indian Bank understands the needs of a customer and has thus compiled good options for home
loan schemes under their banner. They can pay heed to the customer’s demands and also their
financial capabilities, by which they can devise comprehensive home loan packages for them
which has low-interest rates and easy repayment scheme which includes holiday period for the
customer.
The eligibility of the applicant determines what amount of loan and for how much duration of
repayment he/she is eligible for. This eligibility is calculated by means of looking at the
applicant’s income, age, CIBIL score and co-applicants signature. If the eligibility factors like
CIBIL score is not favourable, the Indian bank will impose a heavier interest rate upon his/her
loan amount.
Indian Bank puts an interest rate of 8.75% to 9.70% for its customers with a special discounted
rate of interest for women applicants.

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INTEREST RATE
When applying for a house loan, interest rate is among the most crucial things to take into
account. The fee that the borrower must pay the lender in exchange for a loan is known as the
interest rate. Home loan interest rates in India can vary depending on several factors such as the
loan amount, the repayment tenure, the type of interest rate, and the borrower's credit score.
Home loans from Indian Bank are available with both fixed and adjustable interest rates. The
fixed interest rate applies for the duration of the loan, while floating interest rates are linked to
the prevailing market rates and can vary over time. The interest rates offered by Indian Bank for
home loans vary depending on the loan amount and the repayment tenure.

The following is a table representing Interest rates for various Indian bank Home loan schemes.

Indian Bank Home Loan Schemes Interest Rate (Per annum.)

Indian Bank Home loans 8.75% onwards

Indian Bank Plot loan (NRIs & Resident) 9.75% onwards

Indian Bank Home Loan improvement 8.75% onwards

Indian Bank Home Loan for NRIs 8.75% onwards

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The interest rates offered by Indian Bank for home loans typically range from 6.85% to 7.55%
per annum for women borrowers, and from 6.90% to 7.60% per annum for other borrowers.
These prices could fluctuate from time to time, and the borrower should check with the bank for
the latest interest rates. It is important to note that the interest rate is not the only factor to
consider when availing a home loan. Other factors such as processing fees, prepayment charges,
and The cost of the loan as a whole is also affected by foreclosure fees. Therefore, borrowers
should carefully evaluate all the charges associated with the loan before making a decision

REPAYMENT TENURE

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Indian Bank offers flexible repayment tenures for its home loan products, which can range from
1 year to 30 years. The repayment tenure for the loan is determined based on the borrower's
financial situation and requirements. The length of time a home loan is repaid determines the
loan's final cost in a significant way.. A longer repayment tenure leads to a lower EMI (equated
monthly installment), however, the total interest paid over the course of the loan is larger. On the
other hand, a shorter repayment tenure leads to a higher EMI, however, the overall amount of
interest paid during the loan term is less. Indian Bank offers the facility of part prepayment and
full prepayment of the loan, subject to certain terms and conditions. Part prepayment allows the
borrower to make a partial payment towards the loan, which can help in reducing the overall
interest paid over the loan tenure. Full prepayment allows the borrower to pay off the entire loan
amount before the end of the loan tenure, which can lead to significant savings in interest. The
repayment tenure of a home loan also depends on the borrower's age and retirement plans. The
borrower should ensure that the loan is repaid before they retire, to avoid any financial burden
during retirement. Indian Bank provides various options for repayment of the loan, including
ECS (electronic clearing system), post-dated cheques, and standing instructions. The borrower
can choose the repayment option that is convenient for them. Indian Bank offers flexible
repayment tenures for its home loan products, which can range from 1 year to 30 years.
The borrower should carefully evaluate their financial situation and requirements before
choosing the repayment tenure. The bank also provides the facility of part prepayment and full
prepayment, which can help in reducing the overall interest paid over the loan tenure.

The following table represents the loan repayment tenure allowed with respect to the age of the
applicant.

Applicant’s current Tenure allowed for salaried Tenure allowed for self-employed
age person’s repayment person’s repayment

18 years 30 years 30 years

25 years 20 years 20 years

30 years 20 years 20 years

35 years 20 years 20 years

40 years 20 years 20 years

45 years 15 years 15 years

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 50 years 10 years 10 years

DOCUMENT REQUIREMENT
Indian Bank requires certain documents from the borrower to process the home loan application.
The documents required may vary depending on the loan amount, type of loan, and other factors.
The borrower needs to provide identity proof documents such as PAN card, voter ID card,
Aadhaar card, passport. The bank also requires address proof documents such as electricity bill,
telephone bill, or passport. The borrower must provide evidence of income in the form of the last
six months' worth of bank statements, tax returns, or pay stubs. In addition to the above
documents, the bank requires property-related documents such as sale deed, agreement of sale,
and land records. The borrower also needs to provide documents related to the construction of
the property such as building plan approval, completion certificate, and NOC from the concerned
authorities.
If the property is being purchased jointly, then the co-applicant also needs to provide identity
proof, address proof, and income proof documents. In case the borrower is self-employed, the
bank may require additional documents such as business registration certificate, business profile,
and profit and loss statement. The documents required by Indian Bank are essential for the loan
approval process. The borrower should ensure that they provide all the necessary documents in a
timely manner to avoid delays in loan processing. Indian Bank requires the borrower to provide
various documents related to identity proof, address proof, income proof, and property details.
The borrower should ensure that they provide all the necessary documents to avoid any delays in
loan processing.

For salaried

 Proof of identity
 Passport size photograph
 Residential address proof
 Age proof
 Last 6 month's bank statements
 Last 3 months' salary slips
 Property-related documents

An Advance cheque for processing

formalities A cheque which is to validate the details of your bank.

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 Duly filled & attested application
form with 3 passport size photograph

Consisting of salary slips, bank statements going back 1

Source of income proof
year, and Form 16

Investment portfolio’s copy Mutual funds and other bonds documents

Current employment letter A letter from HR

Authorised Identity proof with photo Passport-sized photos, Voter ID, PAN card

Enclosed with sale deed, Katha, Transfer of Ownership

Subject property’s documents
documents attested

Verified address proof Sale Deed copy or Rental Agreement

For self-employed

 Proof of identity
 Residential address proof
 Passport size photograph
 Age proof
 Last 6 months' bank statements
 Business details
 Profit and loss account statements with computation of income plus balance sheet
 Latest Income Tax Returns

For NRIs

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  Proof of identity
 Passport size photograph
 Residential address proof
 Overseas residential address proof
 Latest NRE account statements
 Business details (for self-employed)
 Work permit or employment contract letter (for salaried)
 Valid Visa and passport copy
 Property-related documents

EMI CALCULATION

EMI (Equated Monthly Installment) calculation is an essential aspect of loan repayment in

Indian banks. EMI is the fixed amount that a borrower pays every month to repay a loan, which
includes both the principal amount and the interest charged by the bank. The loan amount, the
interest rate the bank charges, and the loan tenure (the length of time the loan is taken) are the
three variables used to calculate the EMI. The larger the loan amount, interest rate, and loan
term, the higher the monthly interest payment. In India, banks use various methods to calculate
EMI, comprising the daily declining balance technique, the reducing balance method, and the
flat-rate approach. The reducing balance method is the most commonly used method, which
calculates interest on the outstanding loan balance, reducing the principal amount with each EMI
payment. Banks in India provide EMI calculators on their websites, which allow borrowers to
calculate based on the loan amount, interest rate, and loan term, the EMI amount. This helps
borrowers to plan their finances and choose a loan amount and tenure that is affordable for them.
It is essential for borrowers to ensure that they pay their EMI on time every month, as defaulting
on EMI payments can lead to penalties and negatively impact their credit score. Banks also offer
the option of pre-paying the loan, which helps borrowers save on interest and reduce their overall
loan burden. Overall, EMI calculation is an important aspect of loan repayment in Indian banks,
and borrowers should carefully consider their financial situation before opting for a loan and
ensure that they can afford to pay the EMI amount every month.

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Indian Bank Home Loan Calculator

Indian Bank, established in 1907, is one of the leading public sector financial institutions in
India. After its merger with Allahabad Bank on 1st April 2020, it is India’s seventh-largest bank.
Moreover, with more than 100 million customers vesting their trust in Indian Bank, it comes as
no surprise that scores of aspiring homeowners turn to the lender for a housing loan. Among
other financial products provided by the bank, the home loan is one of the popular ones.

However, availing of such a credit facility requires considerable financial planning. Otherwise, it
may later saddle the borrower’s finances. Thus, prospective homeowners may opt to utilise the
Indian Bank home loan calculator to chalk out their repayment plan for such a loan.

What is the Indian Bank Home Loan Calculator?

When a borrower avails a home loan, the financial institution pays off the amount in whole or in
parts to the property seller or realtor. This individual then repays such loan in fixed monthly
instalments over a chosen tenure, along with interest.

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The Indian Bank home loan EMI calculator facilitates this instalment calculation. Individuals can
enter the principal, tenure, and interest rate in this online tool to find out the EMIs they need to
pay before availing a home loan from Indian Bank.

Indian Bank Home Loan Calculator – Key Features

 The lender provides the loan to both salaried and self-employed. Also, special rates
offered to women, senior citizen and NRI borrowers.

 Individuals from 18 to 60 years can apply for a loan

 For security one can keep a mortgage of property that they are planning to purchase,
renovate or construct.

 Loan to Value Ratio is 90%.

 The tenure of the home loan ranges from 5 to 20 years.

 Interest rates range from 7.55% to 7.85%.

 Indian Bank home loan EMI per lakh starts is Rs. 809 (starting price). However, one can
calculate the home loan

 EMI anytime using the Indian Bank home loan calculator 2022.

 The processing fees charges is 0.23% of the loan amount (amounting to a maximum of
Rs. 20,381)

How is Indian Bank Home Loan EMI Calculated?

Home loan EMI calculation requires three variables – the loan amount, rate of interest, and the
repayment term. Individuals thus need to enter these variables into an Indian Bank housing loan
EMI calculator to compute the monthly instalment amount. The formula used for EMI
computation is –

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EMI = [P x R x (1 + R)^n] / [(1 + R)^n-1]

In this expression, P stands for the principal or loan amount; R is the rate of interest divided by
12, and n denotes the tenure in months.

An example may provide further clarity into how the Indian Bank home loan calculator
functions.

Ms Joshi is buying an apartment in Mumbai. To finance her purchase, she decides to avail a
housing loan from Indian Bank, details of which are mentioned in th below:

As per the aforesaid formula, her EMI would be –

[8000000 x 0.0079 x (1 + 0.0079)^300] / [(1 + 0.095)^ (300 – 1)]

Or, EMI = Rs. 69,896

Thus, Ms Joshi would need to pay Rs. 69,896 as EMI for her loan of Rs. 80 lakh over a period of
25 years.

Which Factors influence Home Loan EMI?

Three primary factors that carry weight in instalment calculation are:

1. Principal

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The loan amount directly acts upon the EMI. When using the Indian Bank home loan calculator,
individuals may note that the instalment amount goes up when they increase the principal
amount and vice versa.

2. Repayment term

A longer tenure reduces the EMI amount but increases the cost of a loan. That’s because interest
accrues over a more extended period. Conversely, a briefer tenure results in higher EMIs, but the
total interest is lower.

3. Interest rate

A higher interest rate increases the total cost of a loan and vice versa. Resultantly, the monthly
payout directly varies with a change in the rate of interest, which depends on the borrower’s
credentials, like their credit score, income, etc.

What are the Benefits of an Indian Bank Home Loan Calculator?

A home loan calculator features several benefits for the user. A few of these are:

 Individuals can calculate the EMI amount within seconds using a loan calculator. Thus, it
allows them to try out different variables, like adjusting the tenure, to reach an affordable
instalment amount.

 Aspiring homeowners can learn the cost of loan they need to incur beforehand with this
online tool.

 It is simple to use. Hence, even individuals with minimum technical know-how can
utilise the Indian Bank housing loan calculator.

 Borrowers can plan their repayment efficiently with the calculator’s aid.

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Availing a home is a significant responsibility. Thus, individuals shall ensure they have a sound
repayment plan in place before committing to a housing credit facility.

TAX BENEFITS
Indian banks, including Indian Bank, offer tax benefits to borrowers who obtain mortgage loans
from banks in accordance with the terms of the 1961 Income Tax Act, which are subject to
change according to government rules and regulations. Borrowers may deduct interest paid on
their mortgage under Section 24(b) of the Income Tax Act from their taxes. The most that can be
deducted from a self-occupied property is Rs. 2 lakh each fiscal year, while there is no maximum
limit for a property that is not self-occupied. Under Section 80C of the Income Tax Act,
borrowers may additionally deduct taxes from principal repayments. The most that can be
deducted is Rs. 1.5 lakh every fiscal year, and It can only be claimed once the property's
construction is complete, and the borrower has taken possession of the property. Additionally,
under Section 80C of the Income Tax Act, borrowers may claim tax savings on stamp duty and
registration fees paid on the property, with a maximum deduction of Rs. 1.5 lakh each financial
year. It's important to note that borrowers need to provide the necessary documents such as the
loan sanction letter, interest certificate, and payment receipts to claim the tax benefits.
Additionally, timely filing of income tax returns is crucial to avail these benefits. In conclusion,
Indian Bank offers tax benefits to borrowers who avail home loans from the bank, including
deductions on interest paid, principal repayment, and stamp duty and registration fees.
Borrowers need to provide the required documents and file their income tax returns on time to
claim these tax benefits.

ONLINE APPLICATION PROCESS

The Indian banking industry has made great strides in providing online services to its customers,
and applying for a home loan online is no exception. The online application process for applying
for a home loan from an Indian bank is relatively straightforward. Firstly, you will need to
choose the bank from which you want to apply for the home loan. Once you have made your
choice, visit the bank's website and look for the section on home loans. Here, you will find all the
necessary information related to the home loan product, including the eligibility criteria, interest
rates, and repayment options. Next, you will need to fill in the online application form with your
personal and financial details. This may include your name, contact details, income, employment
details, and the details of the property you want to purchase. Once you have filled in the
application form, you will need to submit the necessary documents, which may include proof of
identity, address, income, employment, and property ownership. After the bank receives your
application and documents, they will conduct a thorough evaluation of your eligibility for the
home loan. This evaluation may include a credit check, verification of your income and

30
employment details, and a valuation of the property you want to purchase. If your application is
approved, the bank will send you an offer letter, which will include the details of the home loan,
such as the loan amount, interest rate, and repayment schedule. You will need to accept the offer
by signing the loan agreement and submitting any additional documents required by the bank.
Finally, the bank will disburse the home loan amount to your account or directly to the seller of
the property. You can then begin repaying the loan as per the agreed schedule. The online
application process for applying for a home loan from an Indian bank is convenient and easy to
use. However, To prevent any delays or rejection of your application, it is crucial to make sure
you have all the required documentation and information.

LOAN DISBURSEMENT
Loan disbursement is an essential function of banks in India. Banks in India offer various types
of loans to individuals and businesses. The loan disbursement process involves several steps,
starting with the application and ending with the disbursal of funds. The first step in the loan
disbursement process is the application process. The borrower needs to fill out an application
form and submit it along with the necessary documents. The bank then verifies the information
provided by the borrower and assesses their creditworthiness. Once the bank is satisfied with the
borrower's creditworthiness, it approves the loan and issues a loan agreement. The borrower
needs to sign the loan agreement and provide any collateral or security required by the bank.
After the loan agreement is signed, the bank disburses the loan amount to the borrower's account.
The borrower then repays the loan in monthly instalments, which includes the principal amount
and the interest charged by the bank.
The Reserve Bank of India (RBI) regulates banks in India and mandates a set of rules for loan
disbursement. These rules make sure that banks don't take advantage of borrowers and that the
loan disbursement process is fair and open. Overall, loan disbursement is an important function
of banks in India and plays a crucial role in the country's economic growth.

PREPAYMENT & FORECLOSURE

Prepayment and foreclosure are two options available to borrowers in Indian banks to repay their
loans before the end of the loan tenure. These options can help borrowers save on interest and
reduce their overall loan burden. Prepayment is when a borrower pays off a part of the loan
amount before the end of the loan tenure. Banks in India allow prepayment of loans, but may
charge a prepayment penalty, which is usually a percentage of the outstanding loan amount.
However, as per the RBI guidelines, banks cannot charge a prepayment penalty on floating rate
loans taken by individual borrowers. Foreclosure, on the other hand, is when a borrower repays
the entire loan amount before the end of the loan tenure. Banks in India also allow foreclosure of
loans, but may charge a foreclosure penalty, which is usually a percentage of the outstanding
loan amount. However, as per the RBI guidelines, banks cannot charge a foreclosure penalty on
31
floating rate loans taken by individual borrowers. It is important for borrowers to carefully
consider the prepayment or foreclosure option, as it may not always be financially beneficial. For
example, if the outstanding loan amount is small, the prepayment penalty or foreclosure penalty
may be higher than the interest saved. In such cases, it may be better to continue with the regular
EMI payments till the end of the loan tenure. Overall, prepayment and foreclosure are useful
options for borrowers to reduce their loan burden in Indian banks, and borrowers should
carefully consider these options before making a decision.

Benefits of Home Loan Prepayment Calculator

Are you planning to make a partial prepayment against your Indian Bank home loan? You can
simply use the home loan prepayment calculator to find out how much you will save on interest
and how this will affect your home loan EMI. You can simply enter the loan amount, rate of
interest, tenure, installments paid and the prepayment amount to fetch the results.

A part-payment of your existing Indian Bank home loan would largely limit the liabilities when
opted for at the correct time. The Indian Bank home loan prepayment calculator enables a
borrower to decide the overall profitability of the advance payment that they make against the
housing loan liability. When a borrower opts for a part-payment, the prepayment amount should
preferably be a lump-sum amount and at least three times your monthly EMI.

How to Use Home Loan Prepayment Calculator?

The Indian Bank Home Loan Prepayment Calculator can be used in Magicbricks as a free tool
that can be used by anyone. All you are required to do is to enter a few figures for ascertaining if
this transaction would somehow help you in saving a good amount of the interest to be paid. To
use the Indian Bank home loan prepayment calculator, you necessarily need to have the
information regarding the present principal outstanding, remaining loan tenure, your existing
home loan interest rate and the prepayment amount.

Follow the simple steps to use the Indian Bank home loan prepayment calculator:
 Step 1 - Click the 'Part Payment Calculator' under the section of 'Home Loan'.
 Step 2 - The outstanding loan principal amount is to be entered.
 Step 3 - You need to provide the agreed interest rate of your existing home loan.
 Step 4 - The remaining repayment tenure is to be entered.
 Step 5 - The part payment amount is to be entered.
Once all the above details are furnished, you can go ahead with the calculation.

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How Much Can You Save with Home Loan Prepayment?
The total savings that you can make from an Indian Bank home loan prepayment would depend
on the tenure, the prepayment amount & the instalments already paid. For instance, if you have
an existing Indian Bank home loan of Rs. 40 lakhs, actual loan tenure opted for is 10 years, rate
of interest is 9%, the number of installments paid is 50 and if the prepayment amount is 5 lakhs,
then you ultimately save the interest of Rs. 3,00,322 in the process.

The Indian Bank home loan prepayment calculator is programmed in such a way that it would
provide you with accurately calculated figures. The crux of this remains, prepayment works the
best during the initial years of the loan.

Things to Consider Before Making Home Loan Prepayment

1. You should never use your emergency fund for making your home loan prepayment.
2. You should ideally never redeem your existing investments that are set aside for the
achievement of your future financial goals.
3. You should choose very wisely between the EMI reduction and loan tenure as per your
future financial planning.
4. You should thoroughly evaluate & compare all your savings through the Indian Bank
home loan prepayment calculator.
5. You should fetch the returns derived from your present investments into consideration.

Is there any Prepayment Charge on Indian Bank Home Loan?

The cases when Indian Bank is allowed to charge prepayment penalty as per RBI guidelines are:
 If you are not an individual borrower, then the bank is allowed to charge prepayment.
 The bank has the liberty of charging prepayment penalty in case of fixed-rate loans.
 The bank is allowed to charge a prepayment penalty on fixed-rate loans if the particular
borrower is opting for another loan from some other bank or HFC for making the
prepayment.

DEFAULT & REPOSSESSION

Default and repossession are serious consequences of loan default in Indian banks. Defaulting on
loan payments can negatively impact a borrower's credit score and lead to legal action by the
bank. The loan is labelled as a non-performing asset (NPA) by the bank if the borrower misses a
specific number of payments on time on their EMI. The bank then takes legal action against the

33
borrower, which may include sending notices, initiating recovery proceedings, and seizing the
collateral or security provided by the borrower. Repossession is the last resort for banks, and they
can only repossess the collateral or security provided by the borrower after following due legal
process. The bank has to provide notice to the borrower before seizing the collateral, and the
borrower has the right to challenge the bank's decision in court. In India, A framework for banks
to recover their loans in the event of default is provided by the Securitization and Reconstruction
of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, which was passed in
2002. The Act allows banks to take possession of the collateral without the intervention of the
court in case of default and also allows banks to auction the collateral to recover their dues.
Overall, default and repossession are serious consequences of loan default in Indian banks, and
borrowers should ensure that they pay their EMI on time to avoid these consequences. In case of
financial difficulty, borrowers should approach the bank and seek assistance in restructuring the
loan or finding a suitable repayment plan.

Indian Bank Home Loan Application Process

Do you aim to purchase your own house in the near future? You can now realize your dreams of
owning your own house very easily by availing an Indian Bank home loan of up to Rs. 3 crores
with attractive rates of interest that start at just 7.55% p.a. with several additional benefits like
extended loan terms & flexible options of repayment. You can apply for an Indian Bank home
loan online very conveniently.
This involves simple documentation, very fast processing backed with excellent and dedicated
customer service. The response time is also very quick and this hardly takes 30-45 minutes. This
makes Magicbricks a preferred platform for applying for an Indian Bank home loan. Also, Indian
Bank has a vast network of branches across the country which makes it easier to reach them in
case of any queries and processing formalities.

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Key Steps in Indian Bank Home Loan Application

Key Steps in Indian Bank Home Loan Application

Step 1: Fill the application form
You can apply for an Indian Bank home loan very easily and conveniently and in several ways.
Here are the 3 different channels available for applying.

1. Application through Magicbricks

You can apply for an Indian Bank home loan through the official website of Magicbricks at
www.magicbricks.com and then navigate the section of 'Home Loan' that you can find under the
'Loans' menu. You can click on the 'Apply Now' tab next to Indian Bank and then keep following
the instructions to complete the application process. You can check the application status
anytime through Magicbricks.

2. Applying online through Indian Bank’s online portal

You can visit the official Indian Bank portal and then fill up the form by following the given on-
screen instructions. You can then easily be able to track the status of your application any time
from this portal itself.

3. Applying offline via a branch office

You can also opt for the offline mode and visit an Indian Bank branch to apply for a home loan.
All you need to do is to visit the nearest Indian Bank branch in your locality and get in touch
with an executive and he would guide you through the complete process.
Step 2: Documents collection at your doorstep

When you apply through Magicbricks, our executive will collect all the required documents from
your doorsteps. The documents that are required for applying for an Indian Bank home loan are:

For salaried individuals

 Income proofs that would include the salary slips of the last 3 months, bank statements of
the last 6 months and the latest Form 16 and IT returns.
 Required employment details
 Proof of own contribution
 The bank statement of last 6 months to check if any other loan is opted for
 A cheque in favour of Indian Bank paying the applicable processing fees.

35
For self-employed individuals

 Income proof which would include the income tax returns along with the necessary
details of the businesses, profit and loss account statement, balance sheet and the last 6
years' current account statements
 Detailed profile of the business
 The latest Form 26AS
 Partnership deed
 Co-applicant's sign and photo (if applicable)
 List of directors & shareholders in the owned business
 A cheque in favour of Indian Bank paying the applicable processing fees

Common documents for self-employed and salaried individuals

 Identity proof and address proof like Aadhar card, Voter ID, passport or driving license.
 Property-related documents like the payment receipt made to the builder, copy of the
buyer agreement, title deeds, agreement to sell in case of resale properties, the title of
deeds of the plot etc.

Step 3: Application processing

Once the application is submitted, the Indian bank officials verify all the submitted documents,
check the credit score of the customer etc. Once everything is found to be in place, the bank
decides to approve your home loan.

The processing fees may range up to 0.23% of the total loan amount with a maximum of Rs
20,381 as maximum. The processing fee is charged once the loan is approved by the bank
authorities and ready to be disbursed.

Step 4: Loan sanction letter

If you meet all the requirements as per the criteria set by Indian Bank, your loan will be
sanctioned and you will receive the loan sanction letter from Indian Bank.

The Indian Bank home loan sanction letter has all the details about the loan agreement that
contains the information like the total sanctioned loan amount, the interest to be paid on availing
the home loan and whether the loan plan is on a fixed or floating rate of interest. Also, the total
loan tenor is mentioned in the loan sanction letter without any point of ambiguity.

36
Step 5: Performing Legal & Technical checks

There are certain legal & technical checks that are being performed by the bank like the
verification of your residential address, the verification of the office address, the registration
status of your company/business, to cross-check if you have any loan defaulting case in the past
or any nature of criminal records etc. All these are parts of the statutory policies of Indian Bank.

Step 6: Loan disbursal

Once the bank authorities perform all the necessary checks, they prepare the final agreement.
Once you sign the agreement, your loan is finally disbursed to your bank account.

Main home loan by the bank

People want to move out to new cities where they get employment opportunities by which they can uplift
the status of themselves and their families. Most often these same people will opt to buy a house instead
of renting it for a shorter period, as they see it fit for themselves to invest their money by purchasing a
house as they see themselves living there with their families for a long period.
Purchasing a house in a city or a metropolitan city for that matter is not an easy task due to the property
market is raising its value day by day. Opting for a bank for financing the purchase of a house is the safest
option out there.

Indian Bank presents you Home loans which serve your needs and aspirations of buying a house even if
you can’t pay the whole amount at once to the seller; you can pay the seller the amount through the
financing of home loans provided by Indian banks. After that, you just need to repay the loan amount to
the bank in easy monthly EMIs throughout the tenure allotted by the bank.
Process of applying is pretty simple and quick as their assistance is available to guide you, competitive
interest rates and easy repayment options provided by them makes it one of the finest home loan options
for you to consider while buying a house.
Indian bank Home loans finances needs of so many people irrespective of their nature of employment,
income or other social entities.

Indian Bank Home Laon for NRO or PIO

NRIs and PIO are also eligible for taking home loans from Indian bank. Indian Bank Home Loan for
NRIs is a specific scheme designed by the bank to target the customer base of NRIs and PIO living
outside of India. Even they want to establish a connection with their country and what’s better than to
purchase a piece of land or property to cement this connection on a more solid level. To fulfil these

37
aspirations of NRIs and PIO, financing the purchase of a house/property/land is a good option for them as
it is difficult to oversee the deal and other legalities regarding the negotiations sitting overseas.
Individuals who are Non-Resident Indian (NRI), Person of Indian Origin (PIO), and Overseas Citizen of
India (OCI) are eligible to buy a property/flat/plot of land according to laws in India.
There is a big market of NRIs and PIO seeking housing finance for the banking industry to capture. Many
banks offer a good option of financing to this market and has a good share of the market, Indian bank also
stands firm in this field of financing housing loans to NRIs and PIO as they provide one of the finest
options to procure home loans for their dream house or project in India which is difficult otherwise.
While applying for this scheme, you must rope in a co-applicant on this loan who is also an Indian citizen
with a good CIBIL score. This ensures a hassle-free repayment structuring for the bank in regards to your
application.

Features of Home loans for NRIs

 An NRI from the minimum age of 18 years to a maximum age of 50 years is eligible for a
home loan.
 NRIs working on contractual basis should have at least 3 years of contact left while applying
for Indian bank Home loan.
 Maximum loan amount given under this scheme to the NRI applicant is either 36 times of
gross monthly income earned or 60 times of net monthly income.
 The maximum amount for a loan towards repair and renovation is Rs. 5 lakhs.

 The processing fee is calculated around 0.228% on loan amount.

 Prepayment of the loan amount is accessible with zero prepayment charges to the NRIs.

Home Loan Eligibility for NRI or PIO

India is home to 1.3 billion people, having such a large population doesn’t also mean that there are more
people of Indian origin living outside of India for various reasons.
People migrate to other countries for financial prosperity and elevating their social status as they get
tremendous opportunities to earn a good wage there. People work there with full dedication, and they
become a part of that country’s economy and culture. As these people climb the ladder of success on the
foreign land, they yearn for a home in their native country of India, which ties an emotional thread
between them and their country of origin.
Therefore, the best way for them to establish this connection is by buying a house in India, which is
permissible according to the Indian laws which govern such matters. Any NRI or a PIO can purchase a
house/plot/property in India if he fulfils the criteria set by the government and of the bank.
According to the reports of MEA of India, approximately 30 million people are living outside of India
who are recognised as NRIs or PIOs. These individuals are of different ancestry, ethnicity and national
citizenship. Of these 30 million, the US has 15 million of this diaspora on its own as it provides the
greatest opportunities to get successful.
After 182 days of an individual living outside of India, that individual can claim to be an NRI. This is
according to the Indian laws prescribed for NRI categorisation.

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Similarly, People who were once Indian through their passport but now have a different passport in their
wallet can claim the status of Person of Indian origin through which he/she can also buy a
property/plot/flat in India. This status is also viable for those whose grandparents, parents and great
grandparents who were once residents of India; therefore they also fall under the category of Person of
Indian origin.
So many individuals from these 2 categories are willing to buy a property/land/flat in India through which
they establish a sense of affection for their motherland. To accomplish this task, they often turn to Bank
institutions for home loans from India for NRIs or PIO. This is the easiest way for them to purchase a
home in India.
For the NRIs Indian Bank provides home loans to finance for a dream house in India; it also lets the NRI
buy a plot in India on which he can construct a house of his own choice. The process is pretty simple and
easy to follow, having assistance for th NRI to enroll in this scheme 24*7.
To buy a house in India while sitting overseas is a bit difficult job on paper, as Indian property laws make
it difficult to buy property easily. Indian bank’s home loans for NRIs provide you with the option of
adding a co-applicant in your application for the home loan which enables the bank to use the co-
applicant as the main borrower of the loan, this is possible as you can assign the co-applicant (mandatory)
the power of attorney by which he/she will take decisions on your behalf letting the purchasing of the
property/land/flat become easier.
By such measures, the NRI or PIO doesn’t even have to visit the site of the subject even once, all that is
to be known by the applicant can be known over the comprehensive web portal of Indian Bank which lets
you track the status of your application online at your convenience.

Who are eligible for this loan scheme?

 Non-Resident Indians (NRIs) carrying an authorised Indian Passport ;

 Persons of Indian Origin (PIOs) carrying a Foreign Passport with a steady income.

Scheme applicable to: NRIs and PIOs

Nationality: Indians

Work experience in total: Minimum 2 years in a particular company

Age requirement for the scheme: 18-60 years of age

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 Loan tenure for repayment: Up to 30 years

Loan amount to be granted: Varies case by case

Interest rates applicable: 8.75% onwards(for the Home loan)

9.75% onwards(for plot loan)

Processing fee levied per application: 0.228%

Prepayment fee levied: Nil

Who is exempted from this loan?

An individual from any of these countries viz. Pakistan, Afghanistan, Bangladesh, China, Iran, Bhutan,
Sri Lanka and Nepal. They are exempt from applying for this scheme.

CONCLUSION

In conclusion, home loans in India have become more accessible and affordable over the years,
banks and mortgage lenders provide affordable interest rates and flexible repayment choices. The
government has also introduced various initiatives and schemes to promote affordable housing
and support first-time homebuyers. However, there are still some challenges that borrowers face,
such as high property prices, lengthy approval processes, and the risk of default and
repossession. One key finding is that home loans have become more affordable due to the low-
interest rates and flexible repayment options offered by banks and housing finance companies.
The reduction in interest rates by the Reserve Bank of India has also contributed to this trend.
This has led to an increase in demand for home loans, especially among first-time homebuyers.
The government's initiatives Examples is the Credit-Linked Subsidy Scheme and the Pradhan
Mantri Awas Yojana have also helped make home loans more accessible to low-income groups.
Another key finding is that the home loan approval process can be lengthy and timeconsuming,
requiring several documents and verification procedures. This can be a challenge for borrowers,

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especially those who need to purchase a property quickly. However, some banks have introduced
digital platforms and streamlined processes to make the approval process faster and more
efficient.

Prospects for home loans in India are promising, with the government's focus on affordable
housing and the increasing demand for housing among the growing middle class. After the
COVID-19 pandemic-related slowdown, the real estate market is anticipated to recover, which
may present additional options for borrowers to purchase real estate. Recommendations for
borrowers include doing thorough research on the property and the lender before taking out a
home loan. Understanding the loan's terms and conditions, particularly the interest rate and EMI,
is crucial, prepayment and foreclosure options, and any penalties or fees associated with the loan.
Borrowers should also ensure that they can afford to repay the loan and have a backup plan in
case of financial difficulties. Another recommendation is to maintain a good credit score, which
is essential for loan approval and can also help in negotiating better terms and interest rates.
Borrowers should also consider factors such as the location, size, and resale value of the property
before purchasing, to ensure that it is a sound investment. Home loans in India have become
more accessible and affordable, with competitive interest rates and flexible repayment options.
The government's initiatives and schemes have also helped promote affordable housing and
support first-time homebuyers. However, borrowers should be aware of the challenges they may
face, such as the lengthy approval process and the risk of default and repossession. It is essential
to do thorough research, maintain a good credit score, and ensure that they can afford to repay
the loan before taking out a home loan. The present study addresses the core issues of housing in
India. Through this paper the drivers of home loan, evolution and types of home loan are
discussed will definitely help the readers for better understanding the concepts of housing loan
and accordingly the prospective customers can approach the banks as per their need. Most of
the time lack of knowledge of housing loan products the customers could not take the benefit
of the same. This can be taken care through this paper.

REFRENCE
1. www.hdfcbank.com/personal/loans/ho me-loan.
2. www.icicibank.com/PersonalBanking/loans/home-loan/index.page.
3. www.pnbhousing.com/
4. www.lichousing.com/
5. www.hdfc.com/home-loans
6. www.dhfl.com/home-loans
7. www.tatacapital.com/
8. www.kotak.com/

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