INDIAN OVERSEAS BANK

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Working together is success!!!

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CONTENTS

1. SUBHAGRUHA HOUSING LOAN SCHEME 3

2. SUBHAGRUHA GEN NEXT HOUSING LOAN 4
3. HOME DÉCOR 5
4. HOME IMPROVEMENT SCHEME 6
5. SUBHAGRUHA TOP-UP LOANS 7
6. SUBHAGRUHA – AIR FORCE PERSONNEL 8
7. HOME LOAN TO NRI 9
8. SUBHAGRUHA PRE APPROVED HOME LOAN 9
9. GHARONDA 10
10. CHECK-LIST FOR HOME LOAN PROPOSAL 12
11. DISCRETIONARY POWERS FOR HOUSING 14
LOAN SCHEMES
12. 14

13. 15

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 S.No Subject Features
 Individuals/ group of individuals, individual members of
1 Target Group/ cooperative society with regular and independent source of
Eligibility income.
 Salaried in line of employment for at least two years & in
case of business it can be reduced based on income of
individual.
 Age not to exceed 60 years, if more than 55 years spouse or
legal heir should be included as coobligant. Loan to be
liquidated before the first applicant attains the age of 70
years.
Acquisition/construction of a new flat or a house. Purchase of old
2 Purpose of Loan house/flat age not exceeding 25years. Additional floor/rooms
construction also. For purchase of plot -30% of loan amount and
construction to be completed within 2 yrs. from the date of purchase
of plot.
No Maximum ceiling. Upto 90% of the cost construction/ purchase.
3 Quantum of Loan 50% income norms to be considered yet Regional Managers can
sanction under 40% norms. On purchase of housing / dwelling unit,
not exceeding Rs.10.00 Lacs,
For HNI Customer
Gross Monthly Income Take home pay
Rs. 75,000/- to Rs. 99,999/- 40% of gross pay
Rs. 1.00 lac & below Rs. 5.00 lacs 30% of gross pay
Rs. 5.00 lac & above 15% of gross pay

cost of Stamp duty, Registration Charges and other document

charges shall also be included in the cost of property to be financed.
Loan Amount Rate of Interest
Up to Rs.30 Lacs 1 year MCLR
4 Rate of Interest Above Rs.30 Lacs upto 1 year MCLR + 0.10%
Rs.75lacs
Above Rs.75lacs 1 year MCLR + 0.25%
5 Security Mortgage of house / flat purchased/land in the name of applicant
followed by Registered Memorandum.

Loan Amount LTV Ratio Margin

6 Margin
Upto 30 Lacs 90% 10%
Above 30 Lacs upto 80 % 20%
75 Lacs
Above 75 Lacs 75% 25%
7 Repayment Period Max 30years including holiday period. However loan should be
liquidated before the applicant attains 70years of age.

 Max 18 months or completion of construction whichever is

8 Holiday Period earlier for construction.
 3 Months for purchase of Old house/flat

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  Processing Charge: 0.58% of loan amount maximum of
9 Remarks Rs.15000/-
Loan upto Rs. 75 lacs: 0.50 % (max. Rs.20,000/-)
Loans Above Rs. 75 lacs: 0.50 % (max. Rs.25,000/-)

 Commission of 0.25% of sanctioned loan amount or

maximum Rs.50000/- whichever is higher to builders for
sourcing application.
10 Master Circular Ref RBMD / MASTER / 64 /2014 – 15 dt. 16.03.2015
No.

S.No Subject Features

1 Target Group Salaried employees of Private sector companies/MNC’s /

Government employees in the age group of 21 to 45 years

Minimum net monthly income of Rs.30,000/-

2 Purpose of Loan Acquisition/construction of a new flat or a house. Purchase of

old house/flat age not exceeding 25years. Additional
floor/rooms construction also. For purchase of plot -30% of loan
amount.

3 Quantum of Loan No Maximum ceiling. 20 % higher loan amount than

subhagruha.

Loan Amount Rate of Interest

4 Rate of Interest
Up to Rs.30 Lacs 1 year MCLR

Above Rs.30 Lacs upto

1 year MCLR + 0.10%
Rs.75lacs

Above Rs.75lacs 1 year MCLR + 0.25%

5 Security Mortgage of house / flat purchased/land in the name of

applicant.

6 Margin Loan Amount LTV Ratio Margin

Upto 20 Lacs 90% 10%

Above 20 Lacs 80 % 20%

upto 75 Lacs

Above 75 Lacs 75% 25%

7 Repayment Period Max 30years including holiday period. A/c should be closed
before the applicant attains 70years of age.

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8 Holiday Period Upto 36 Months (Option to pay or defer the interest payment
during the Holiday period)

9 Remarks  Processing Charge: 0.58% of loan amount maximum of

Rs.15000/-
 Commision of 0.25% of sanctioned loan amount or
maximum Rs.50000/- whichever is higher to builders for
sourcing application.

10 Master Circular Ref RBMD / ADV /524 / 2014 – 15 dt. 30.09.2014

No.

S.No Subject Features

1 Target Group/ Individuals who own a house/flat in their name or in the name of
Eligibility their spouse-confirmed service, three years standing for P.SE-If
house in close relative’s name – joint borrowers-age not more
than 55 years.

2 Purpose of Loan To furnish the house – TV, VCR, Washing machine. Purchase of
computer not allowed.

3 Quantum  5times gross monthly income or Rs.2.00 lakhs whichever is

4 Rate of Interest
less if 3rd party guarantee is offered.
 10 times the gross monthly income or Rs.10.00lakhs
whichever is less of collateral equal to the loan amount is
offered.
1 year MCLR +2.50%

5 Security Hypothecation of assets purchased (b) Mortgage of house/Flat

(c) Third party guarantee (d) If house/Flat is mortgaged to
another bank/institution no lien letter from the bank/ institution
to the items hypothecated to our bank.

6 Margin 25 % on cost kept as term deposit till the loan is closed.

7 Repayment Period 72 EMI- subject to max. age of 60 yrs & not to exceed 60% of
gross pay including EMI for any housing loan-36 post dated
cheques must be obtained towards EMI
8 Holiday Period Nil

9 Remarks Full cost of Furnishing as loan

10 Master Circular MDD / MASTER / 18 /2008 – 09 dt. 01.09.2008,

Ref.No.

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S.No Subject Features

1 Target Group/ Individuals with salaried, business, or professional income,

Eligibility owning a house / flat ahould be an IT assesse, To be in job /
business for min. 3 yrs. Satisfying 50 % take home pay norms.

2 Purpose of Loan Repairs / renovation / up gradation of the existing house /

flat.

3 Maximum Loan Min. Rs.25, 000/-. Maximum Rs. 15 Lacs or 50% of value of
security or estimated cost of repairs whichever is less.

4 Rate of Interest 1 year MCLR

5 Security Equitable Mortgage of the House / Flat which is under

repair/renovation. (Land or any other immovable property
which is unencumbered with a Market value twice that of
the loan amount.

6 Margin 50 % of Market Value of Immovable Property. No margin on

Project cost.

7 Repayment Period Max 144EMI subject to max age of 60yrs – for salaried
person’s entire loan should be recovered before retirement.

8 Holiday Period 3 Months

9 Master Circular ADV/ 359 /2009-10 DATED : 21.12.2009

Ref.No.

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 S.No Subject Features

1 Target Group Should be a borrower under our Subhagruha Housing Loan

scheme with satisfactory repayment track for last 1 year. The
borrower should have completed 1/3rd of Housing loan tenor
excluding holiday period.

2 Purpose of Loan Used very often to finance major expenses such as home
repairs, medical bills or college education.

3 Quantum of Loan 75% of present FSV less outstanding in the Housing loan.
Minimum Rs.50000/- and Maximum Rs.2 Crores.

4 Rate of Interest Upto Rs. 1 Crore - 1 year MCLR + 2.20%

Above Rs. 1 Crore – 1 year MCLR + 2.70%

5 Security Extension of Mortgage of Subhagruha Loan

6 Margin 25% of FSV ( for both existing Subhagruha & propsed top-up)

7 Repayment Period Co-terminus with the original maturity of Subhagruha loan or

earlier

8 Holiday Period No Holiday Period

9 Remarks  Upto Two Home Equity loans shall be allowed to exist

together
 Separate Processing charge as applicable to Housing
Loan to be levied.
10 Master Circular Ref RBMD / ADV / 524 /2014-15 dt. 30.09.2014
No

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 S.No Subject Features

1 Target Group To all in service Air force personnel who are members of Air Force
Group Insurance Society (AFGIS)

2 Purpose of Loan Acquisition/construction of a new flat or a house. Purchase of old

house/flat age not exceeding 25years. Additional floor/rooms
construction also. For purchase of plot -30% of loan amount.

3 Quantum of Loan No Maximum ceiling. Eligibility can be arrived from 30% income
norms as a special case.

4 Rate of Interest Loan Amount Rate of interest

up to Rs.75lacs 1 year MCLR

Above Rs.75lacs 1 year MCLR + 0.25%

5 Security Mortgage of house / flat purchased/land in the name of applicant.

Loan Amount LTV Ratio Margin

6 Margin
Upto 30 Lacs 90% 10%

Above 30 Lacs upto 75 80 % 20%

Lacs

Above 75 Lacs 75% 25%

7 Repayment Max 30years including holiday period. A/c should be closed before
Period the applicant attains 57/ 70years of age.

8 Holiday Period  Max 18 months or completion of construction whichever is

earlier for construction.
 3 Months for purchase of Old house/flat

Remarks  If the property to be purchased is in Delhi, loan to be availed

9 from R K Puram Branch, Delhi only.
 No Processing Charge

10 Master Circular RBMD / ADV / 513 /2014-15 dt . 11.09.2014

Ref no.

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S.No Subject Features

1 Target Group Existing NRI/PIO holding Indian passport or passport of any other
country except Pakistan and Bangladesh.

PIOs with fresh account relationship with minimum monthly salary

equal to Rs.10000/-

2 Purpose of Loan For purchase or construction of residential flat/house and for

repair/renovationof existing house or flat.

3 Quantum of Loan With maximum 80% of cost of construction/purchase

Rate of Interest Loan Amount Rate of Interest

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Up to Rs.30 Lacs 1 year MCLR

Above Rs.30 Lacs upto Rs.75lacs 1 year MCLR + 0.10%

Above Rs.75lacs 1 year MCLR + 0.25%

5 Security Equitable Mortgage of house / flat purchased or proposed to be

acquired.

6 Margin 20 % of the cost of construction/purchase or repair to be brought in

by way of foreign inward remittance or by debit to NRE/NRO/FCNR
accounts.

7 Repayment Period  For Construction/Purchase – 180 Months

 For Repairs/ Renevation – 60 Months

8 Holiday Period  For Acquisition – 6 Months

 For Construction – 12 Months
 For Repair & Renovation -3 Months

9 Remarks Co obligant (Resident) may also be a POA of NRI

10 Master Circular ADV / 505/2010-11 dt. 31.12.2010

1. Provisional sanction of Home Loans before finalization of the Property.

2. Loan eligibility is based on income of the applicant
3. Nonrefundable processing fee as per Subhagruha scheme to collected at the time of sanction
under terms and conditions with the margin requirements.
4. Pre-Approved Loan Arrangement letter (PLAL) is valid for 3 months. Property papers to be
submitted by the applicant before the expiry of validity period.
5. Loan Eligibility: Minimum Rs.10 Lacs and Maximum as per eligibility of the borrower.
6. Other terms and conditions are applicable to as per regular Subhagruha Housing Loan scheme.
Master Circular Ref no: RBMD / MASTER / 64 /2014 – 15 dt. 16.03.2015

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S.NO. SUBJECT FEATURES

1. Mission “Housing for All” mission for Urban Area implemented during 2015-
2022
2. Coverage List of all statutory towns as per Census 2011 is available in
www.nhb.org.in
3. Purpose New Construction and addition of rooms, kitchen, toilet etc. to
existing dwelling as incremental housing.
4. Eligibility 1. The beneficiary family should not own a pucca house
either in his/her name or in the name of any member of
his/her family in any part of India.
2. Houses should be in the name of female head of the
household or in the joint name of the male head of the
household and his wife and only in cases where there is no
adult female member in the family, the house can be in the
name of male member of the household.
3. Interest subvention is available to those borrowers who has
not availed any other benefit from other Government
schemes.
5. Age Limit Maximum 70 years at the end of repayment period
6. Loan Amount As per eligible amount based on the income norms.
7. Margin Loan Amount Margin
Upto 20 lac 10%
>20 lac upto 75lac 20%
Above 75 lac 25%
8. Takehome Pay 50% of the gross income of the applicant
If both are employed – 40%norms should be seen only in case of
the prime borrower and net income of spouse shall be added to
arrive at the repayment capacity and to fix quantum of loan
9. Repayment period 30 years with maximum holiday period of 18 months
10. CERSAI Charges To be collected from the borrowers

Parameter LIG MIG 1 MIG II

Beneficiary A beneficiary family will comprise of husband, wife, unmarried sons

and/or unmarried daughters.
An adult earning member (irrespective of marital status) can be treated
as a separate household.
Annual Household Above Rs.3.00 Lakhs Above Rs.6.00 Lakhs Above Rs.12.00 Lakhs
Income (PA) and upto Rs.6.00 and upto Rs.12.00 and upto Rs.18.00
Lakhs Lakhs Lakhs

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 Parameter LIG MIG 1 MIG II

Interest Subsidy 6.5% p.a. 4.00% p.a. 4.00% p.a.

Maximum Loan 20 years 20 years 20 years
Tenure – Considered
for interest subsidy
Note Loan tenure can be more as per our scheme upto 30 years, but for
subsidy calculation, the tenure is restricted as 20 years or tenure of the
loan, whichever is lower.
Eligible Housing Loan Rs.6.00 Lakhs Rs.9.00 Lakhs Rs.12.00 Lakhs
for Interest Subsidy
Note The amount shown here is the amount upto which the loan is eligible for
subsidy. However the actual loan can be more as per their eligibility
Dwelling Unit Carpet 60 Sqm 160 Sqm 200 Sqm
Area
Note The beneficiary, at his/her discretion, can build a house of larger area
but interest subvention would be limited to the eligible housing loan
amount for interest subsidy based on the category.
Processing charges Rs.3000/- Rs.2000/- Rs.2000/-
per sanctioned
application upto
eligible amount will
be paid by NHB
Note Actual processing charges above the eligible loan amount for subsidy,
should be charged and recovered from the borrower
Our GL Head IOB Gharonda IOB Gharonda IOB Gharonda
PMAY – CLSS-LIG PMAY – CLSS-MIG 1 PMAY – CLSS-MIG 2
Scheme Code RGLIG RGMI1 RGMI2
Our GL Code 33489 33487 33488

List of Circulars:
1. MASTER/79/2015-16 dt 10.02.2016
2. ADV/009/2016-17 dt 05.05.2016
3. ADV/88/2016-17 dt 27.03.2017
4. ADV/251/2018-19 dt 26.06.2018
5. ADV/312/2018-19 dt 28.12.2018
6. ADV/330/2018-19 dt 04.02.2019
7. ADV/367/2019-20 dt 21.05.2019

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APPLICATION FORM

 Duly filled-in and signed by all applicants

 One colored passport-size photograph of all applicants

KYC DOCUMENTS

 Identity proof (PAN Card/ Driving License/ Passport/ Aadhar Card/ Voter’s ID Card with
photo etc.)
 Residence proof (Driving License/ Passport/ Ration Card/ Utility Bills Like Telephone,
Electricity or Water Bill/ Registered Rent Agreement, etc)
 Age Proof (PAN Card/ Driving License/ Passport/ Voter’s ID Card, etc)
 Details about legal heirs, if any.
 ID & Address proof of seller of house/flat.

KYC due diligence to be done by branch and all documents to be verified with original. Branch
to certify on the photocopies “Verified with original” duly signed with stamp.

FINANCIAL DOCUMENTS

SALARIED
 Salary slips (last 6 months) with salary account statement showing salary credits and Form-
16s/ ITRs. Proof of employment/ appointment letter/ confirmation letter etc.
 Length of Service: Proof of at least Two Years of service/ employment.
 Bank statement for last 6 months (all active bank accounts)

SELF-EMPLOYED/ BUSINESS
 Consecutive 3 years’ ITRs with computation sheets and Financials (Proof of self-
employment/business, Balance sheet with Profit & Loss Account, Registration details etc.
whichever is applicable)
 Bank statement for last 6 months (of all active bank accounts

CREDIT HISTORY:

 CIBIL report with Branch comments giving details of EMIs of all EMI-bearing loans.
 A/c details and conduct of A/c, if existing customer, giving details of Limits, DP, O/s and
irregularities, if any.
 CIBIL Mortgage Check

PROPERTY RELATED DOCUMENTS: (as applicable)

 Agreement to sell
 Builder- Buyer Agreement/ Allotment letter
 Govt Agency/ Co-operative Society allotment letter
 Proof of advance payment, if any, made to the owner/Builder (Own contribution)
 NOC from builder/Society/Banker/ Lessor for creation of mortgage, if flat is under
construction.
 Copy of approved layout/ building plan/ Map

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  Copy of other Govt./ statutory clearances
 Valuation report from our panel valuer in IOB Format
 Legal opinion from our panel lawyer in IOB Format
 Inspection report in F-337 duly signed by Branch Head with approach route map to the
building and tax paid receipts, if any.
 Desk Top Valuation

OTHER RELATED DOCUMENTS (as applicable)

 Sanction letter/ Account statement of running loans and bank statement reflecting loan
repayments.
 In case of recent employment – Previous employment proof - Form-16, Appointment Letter
and salary slips etc.
 Asset Liability statement in F-347 (Revised) with branch authentication.
 Guarantor’s statement in F-349 (Revised), if applicable, with branch authentication.

Note: All documents submitted by customer should be self-attested and duly authenticated by
Branch. The proposal should comply with all extant IOB guidelines in force in respect of
Subhagruha Scheme/ Home Improvement Scheme.

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 s.no Scheme Max loan amt. as per DGM AGM 4 3 2 1
scheme
1 Subhagruha No ceiling 300 200 100 40 20 10
2 Home loan to NRIs No ceiling 300 200 100 40 20 10
3 Subhagruha Topup Loans 200 200 100 50 20 10 5
4 Home Improvement Scheme 15 15 15 10 5 3 2
5 IOB’s Home Décor Scheme 10 10 10 5 3 1 0.5

In case of deviations in various housing loan schemes guidelines, discretion has been given to various layers provided
such deviations are not in violation of RBI guidelines

Existing Scheme norms Delegated powers for approving deviations

Housing loan all schemes
Housing loan all schemes (Including HL to NRI,
Home décor and improvement)
Age of Borrower (excl.
home décor)
Age not to exceed 60
years, if more than 55
years spouse or legal
heir should be included
as coobligant. Loan to
be liquidated before the
first applicant attains the
age of 70 years.
By RLCC By ZLCC
IOB 1 to IOB 4 IOB 1 to IOB 5
Can be considered up Can be considered up
to 65 years of age to 70 years of age
If more than 55 years spouse or legal heir should be
included as coobligant this condition remains the
same

Repayment period Loan to be liquidated Upto 75 years Upto 80 years

(Subhagruha Scheme) before the first applicant
attains the age of 70
years.
Repayment period Home Improvement – Another 36 months can Another 72 months can
(All other Housing loan 144 monts be extended for HI and be extended for HI and
Scheme) Home décor – 72 NRI housing loan and 24 NRI housing loan and 48
months moths for home décor. moths for home décor.
NRI Housing Loan – 180
months
Take home pay norms Gross Take (FOR IOB 5 ONLY)
Monthly home
Income pay RLCC can consider ZLCC can consider
Rs. 40% of relaxation by another 5 relaxation by another 5
75,000/- to gross percent in each percent in each
Rs. pay category based on the category based on the
99,999/- merits of the case. merits of the case.
Rs. 1.00 30% of
lac & gross
below Rs. pay
5.00 lacs
Rs. 5.00 15% of
lac & gross
above pay

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Interest concession upto 0.25% can be considered on the card rate for IOB1 to IOB5
customers for considering Housing Loans under Subhagruha Scheme subject to the
rate not falling below the 1Yr MCLR Rate. The approving authority shall be as under:

APPROVING AUTHORITY SANCTIONED BY

ZLCC Up to RLCC
HLCC(GM) Up to ZLC

Any interest concession for Housing Loans under Subhagruha scheme (above Rs.75
lacs) should be allowed by HLCC (GM) upto 0.25%.

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