Home Loan to Corporate Entity
Home Loan to Corporate Entity
| Target Group | Corporate Entities: –
Ø Public Limited Companies |
|||||||||
| Purpose | To Provide Home Loans for construction / acquisition of Residential Units in the name of the Company for residential / welfare accommodation of their Directors / Partners / Promoters / Employees.
|
|||||||||
| Eligibility | Corporate Entities:
· Should be in line of business for at least 3 years · Should have earned uninterrupted Net Profit in last 3 FYs and should have positive net worth. · It is to be ensured that existing loan accounts of the Company, if any, should be regular and standard and also should not have been restructured during the last three years. · External Credit Rating of BBB & above SPV/Subsidiary of Corporate Entities will also be eligible for availing loan under this Scheme provided: · The Parent Company fulfils the above mentioned eligibility norms. · The Parent Company agrees to stand as a Guarantor for Home Loan · The estimated cash flow of the SPV/ Subsidiaries is sufficient to repay the EMIs or the Parent Company gives an undertaking to Service the Home Loan in addition to guaranteeing the loan. |
|||||||||
| Nature of Facility | Term Loan | |||||||||
| Loan Quantum | For properties situated / constructed at: –
|
|||||||||
| Home Interiors / Furnishings as part of Project Cost | 10% of the cost of the house / flat will be permitted towards Interiors / Furnishings, viz., wardrobe, modular kitchen, floorings, fixtures, fittings etc.
However, the maximum loan amount will be restricted to the stipulated LTV ratio. For the purpose of calculation of LTV ratio, the cost of interiors / furnishings will be added to the Project Cost / Value of the property. |
|||||||||
| LTV Ratio | Maximum 75% | |||||||||
| Permissible Loan Amount | The maximum permissible loan amount will be assessed on the basis of Lowest amount of the undernoted parameters:
· Maximum permissible LTV ratio. · Minimum DSCR of 1.25 (inclusive of EMIs of the proposed Home Loan) as per the AFS of last 3 FYs. · Loan amount applied for |
|||||||||
| Loan Tenor | 15 years maximum including moratorium period | |||||||||
| Moratorium period | Upto 3 months in case of purchase of ready-built house and maximum 36 months in case of under construction house. However, interest should be serviced during the moratorium period. | |||||||||
| Geographic Location of the property to be acquired / constructed | Home Loans under Scheme will be made available for acquiring residential property located within the Municipal Area of Metro and Urban/Semi Urban centres only. | |||||||||
| Security | 1. Equitable mortgage of the property to be acquired / constructed with the help of Bank finance and registration of mortgage, charge with Registrar of Companies and CERSAI within the stipulated time frame.
2. Personal Guarantee of Promoters / Directors / Partners. 3. The Company will not be permitted to extend charge on Housing Property, mortgaged to the Bank for Home Loan, for securing any other loans / advances from other Banks/FIs during currency of Home Loan. An undertaking in this regard will be obtained from the Company. However, the company may be permitted to extend second charge for securing any other loan / advance availed from our Bank. Extension of second charge will only be permitted if the Home Loan account is not under moratorium, security perfection has been done and Home Loan account is regular. 4. If the property is already mortgaged with our bank against financial / non – financial facilities and property is under approved plan for residential use, subject to compliance of margin and LTV norms, loan can be sanctioned |
Frequently Asked Questions (FAQs)
Find answers to commonly asked questions about Indian Bank Home Loans.
1. What is a Home Loan?
A Home Loan is a secured loan provided by Indian Bank to help customers purchase, construct, renovate, or extend a residential property.
2. Who is eligible to apply for an Indian Bank Home Loan?
Salaried individuals, self-employed professionals, business owners, NRIs (where applicable), and other eligible applicants who satisfy the bank's lending criteria can apply.
3. What types of properties can be financed?
Home Loans are available for purchasing new or resale houses, construction of houses, home renovation, extension, and other eligible residential properties.
4. What is the current Home Loan interest rate?
Home Loan interest rates are subject to change based on RBI guidelines, applicant profile, credit score, and prevailing bank policies. Please refer to the Interest Rates section for the latest applicable rates.
5. What documents are required?
Applicants generally need identity proof, address proof, income proof, bank statements, property documents, passport-size photographs, and any additional documents requested by the bank.
6. How much Home Loan can I get?
The eligible loan amount depends on your income, repayment capacity, property value, credit history, and the bank's lending norms.
7. How can I calculate my Home Loan EMI?
You can use the Indian Bank Home Loan EMI Calculator available on our website to estimate your monthly EMI based on the loan amount, interest rate, and repayment tenure.
8. What is the maximum repayment tenure?
The repayment tenure depends on the applicable Home Loan scheme and the borrower's eligibility, as per the bank's prevailing guidelines.
9. Can I prepay or foreclose my Home Loan?
Yes. Home Loan prepayment and foreclosure are permitted subject to the applicable terms and conditions of the bank.
10. Are there any processing charges?
Processing charges, if applicable, are levied as per the bank's prevailing schedule of charges.
11. Can I apply for a Home Loan online?
Yes. You can apply online through the Indian Bank website or visit your nearest Indian Bank branch for assistance.
12. Are there any tax benefits?
Eligible borrowers may claim tax benefits on principal repayment and interest paid under the applicable provisions of the Income Tax Act.
13. How long does Home Loan approval take?
Loan approval depends on timely submission of documents, eligibility verification, legal scrutiny, technical evaluation, and property assessment.
14. Can I transfer my existing Home Loan from another bank?
Yes. Subject to eligibility and the bank's prevailing guidelines, customers may transfer their existing Home Loan to Indian Bank.
15. Whom should I contact for further assistance?
You may visit your nearest Indian Bank branch or contact our customer support for assistance regarding Home Loans.
Disclaimer
The content has been translated from the English version using indigenously developed Artificial Intelligence capabilities (Bhashini, developed by MeitY). In the event of any ambiguity or doubt, users are advised to refer to the original English content for clarification.
All information, materials, advice, suggestions, illustrations, notifications, circulars, and other items on this website are collectively referred to as the “Content.”
Indian Bank assumes no responsibility for any errors, omissions, inaccuracies, or typographical mistakes that may appear in the Content. Indian Bank does not provide any warranty or representation regarding the Content and expressly disclaims all liabilities.
Any action taken by users on the basis of such Content shall be entirely at their own risk and responsibility.
Indian Bank reserves the right to modify, correct or update any part of the Content at any time.
No portion of the Content may be displayed or printed without prior written approval of Indian Bank.
As the translated Content has been generated using AI, we encourage suggestions for improvement.
Suggestions may be submitted at:
https://bhashini.gov.in/bhashadaan/en/home