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Home Improvement Scheme![]() |
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Can I get a Home Improvement Loan?
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If you are a salaried individual you should
be in confirmed service with a take home pay
of not less than 50% of gross salary or a
business man or a professional with at least
3 years standing in the line of activity. You
should own a residential house or flat in
your name.…
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What are the purposes for which the loan
is given?
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You can repair, renovate, upgrade, make
modifications of any kind such as undertaking
routine repairs, painting, rewiring, change
the tiles, fix marbles make additions such as cup boards, do woodwork etc. to your existing
house or flat.
How much loan can I get?
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The loan amount depends on the actual
estimate of the work to be undertaken and the
repaying capacity of the applicant. The
minimum loan amount is Rs.25,000/- and the
maximum is Rs.5.00 lakhs.
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What is the rate of interest I
will have to pay on the loan amount?
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Bank is offering both Fixed and
Floating Interest Rate options. The
interest on the loan is charged on
the diminishing balance. The interest
rate are changed from time to time
with out prior notice. Switch over
from fixed rate to floating rate is
possible subject to rewriting fee of
1.00% and a lock in period of 3
years. Bank reserves the right to
convert fixed rate to floating rate
after 3 years. Prepayment charges of
1.00% is levied in case of
prepayment.
Fixed Interest Rates
with effect from 01.05.2007
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Interest
rate % p.a.
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Quantum of
loan
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Up to
5 years |
Over 5
years to 10 years
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| Up to Rs. 5
lakhs |
10.50 |
11.00 |
Floating
Interest rate (linked to BPLR) w.e.f. 12.05.2008
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Interest
rate % p.a.
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Quantum of
loan
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Up to 5
years |
Over 5
years to 10 years
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| Upto Rs. 5 lakhs
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10.00 |
10.25 |
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Given below is a breakup of the
EMIs and the corresponding interest
for repaying a loan of Rs. 100,000/-
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Period
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Interest
Rate % p.a. & EMI for
Rs.100,000/-
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| |
9.00 |
9.75 |
10.00 |
10.50 |
11.00 |
| 5 years |
2076 |
2112 |
2125 |
2149 |
2174 |
| 10 years |
1267 |
1308 |
1322 |
1349 |
1378 |
How do I repay the loan?
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loan is repaid in a maximum of 120
Equated Monthly Instalments. The
repayment period also depends on the
number of years service left in the
case of persons in service. Prepayment
charge of 1.00% on the outstanding or
on amount remitted in excess of
drawing power, will be levied. |
Do I get any initial holiday period for
repayment?
Yes, the repayment of loan starts only after
3 months from the date of loan.
What security should I offer for the
loan?
The house/flat which is being
repaired/renovated should be mortgaged to the
bank. If this property can not be mortgaged
for any reason, any other property in the
name of the borrower with a market value
twice that of the loan amount is to be
mortgaged.
Do I pay any other charges?
A one time processing charge of 0.57% of the
loan amount with a minimum of Rs.570/- is
payable at the time of sanction of the loan.
How can I apply?
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Download
the application form in MS-Word
format |
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Save it on your
computer, print it out and send it to
the nearest/convenient IOB branch for
Processing
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Click here to download the
Application Form
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While all
efforts have been made to update the
information, constituents are requested to
contact the branches for latest details.
updated 21.05.2008
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