Eligibility NRI with a valid Indian Passport or a Person of Indian Origin and holding passport of other countries excluding Pakistan and Bangladesh Monthly salary is equivalent to Indian Rs. 10,000/- Purpose  For  buying, building or renovating your home. The house/flat should be for own occupation when returning  to India. Loan amount For building or buying a new house - Upto 20 times the  monthly salary or a maximum of 80% of the cost of the house or Rs. 50 lakh whichever is lower. For renovating  house - Maximum of Rs. 5 lakh. Margin The minimum margin is 20%. Margin may be by way of foreign inward remittance or by debiting  NRE /NRO /FCNR accounts in India. Security  Equitable mortgage of  the property to be purchased or built or renovated Property should be insured for adequate value with Bank clause     Repayment  If the house is bought or built, repayable within a maximum period of 180 months (15 years). For fixed interest rate option the maximum repayment period is 10 years. Prepayment charge is  1.00%.  Repayable in equated monthly installments through fresh foreign inward remittance or by debiting  NRE/NRO/FCNR account in India If the house is rented out, rental income should be adjusted towards loan installments, even if it is more than the monthly installment prescribed If the rental income is less than the prescribed monthly installment, the shortfall should be brought in be way of fresh inward remittance or by debiting  NRE/NRO/FCNR account in India The repayment of loan installment, interest and other charges can also be made by close relatives of the NRI borrower resident in India, through their bank account. Holiday period  If the house is  bought, repayment can commence 6 months after receiving the loan If the house is  built , repayment can commence 12 months after receiving the loan.  If  the house is renovated, repayment can start 3 months after receiving the loan Please click Retail credit interest rates    Rate of interest  Processing charges The processing charge is 1.50% of the loan amount.  Download the application form in MS-Word format Save it on your computer, print it out and send it to the nearest/convenient IOB branch for Processing Click here to Download the Application Form