IndusInd Bank Home Loan

IndusInd Bank is one of the prominent private sector banking entities in India, renowned for offering a wide array of products to its customers ranging from credit cards to housing loans.

IndusInd Bank understands the desire and requirement of its customers to own a house. Like various other products that are offered by the bank, home loans are designed to suit the needs of numerous modern-day banking customers.

Features of IndusInd Bank Home Loan

• Security/Collateral: 

  • The security or collateral in the home loan is the title deed of the property which the customer wants to get financed. Apart from the title deed, there can be few additional requirements on a case-to-case basis.

  • Provision for co-applicant in the home loan: Co-applicants are always advisable in home loans to ensure higher eligibility for the loan amount and risk mitigation for any default in payments. The income of the co-applicant is summed up along with the primary applicant.

  • The borrower can include their spouse/parents/children as a co-applicant, where their income will also be considered to enhance the loan amount. If there is any other co-owner of the property, he/she has to become a co-applicant mandatorily. Here the point to be noted is that the co-applicant need not be a co-owner, but a co-owner will always be a co-applicant.

• Equated Monthly Installment (EMI): The loan amount is repaid in the form of EMI or 'Equated Monthly Installment.' The EMI is predetermined, and the customer is informed about it during the time of loan sanction. The amount of EMI is proportional to the principal amount, loan tenure, and the interest rate offered. In other words, EMI is the sum of interest amount and a part of the principal amount, which the customer needs to pay monthly.

• Home loan processing: Prospective customers who have finally decided on availing the home loan from IndusInd Bank can check their eligibility online and even apply before deciding on the property. A lump sum amount as per the ability of the customer to repay is sanctioned on the records. After deciding on the property and its related value, the customer has to submit the property-related documents. The swift processing method of home loan in IndusInd Bank brings delight to those customers who don't want to lose on time once they decide to purchase a property.

• Co-applicant: The potential buyers who have decided on borrowing the home loan from IndusInd Bank may also include the co-applicants in the loan. Including co-applicants ensures that the risk is duly shared between two individuals and also brings higher eligibility amount. The income of co-applicants is clubbed together to derive the final eligibility amount.

IndusInd Bank Home Loan Interest Rate in 2019

Interest Rate	8.65% onwards
Processing Fee	Up to 1% of loan amt.
Loan Tenure	Up to 30 years
Prepayment or Foreclosure Charges	Nil if floating, up to 2% for fixed-rate interest

Top Banks Offering Lowest Home Loan Interest Rate in 2019

Home Loan Provider	Home Loan Interest Rates	Processing Fees	Prepayment Charges
Yes Bank	9.85%	0.5% of loan amt. or Rs.10,000 whichever is higher (+GST)	NIL for floating rate loans
SBI	8.55%	Rs. 0 – 10,000	NIL
HDFC Bank	8.65%	Up to 0.5% of loan amt	NIL
ICICI Bank	8.80%	0.5% – 1.00% of loan amt.	NIL
PNB Housing Finance	9.10%	Up to 1% of loan amt	NIL
Axis Bank	8.90%	Up to 1% of loan amt	NIL
IDBI Bank	8.75%	0.5% of the loan amount	NIL
Punjab National Bank	9.05%	Nil	NIL
Canara Bank	8.70%	Varies based on applicant profile	NIL
Bank of Baroda	8.70% - 9.70%	0.25-0.50%	Nil for floating rate loans
Kotak Bank	8.90% - 8.75%	Maximum 2% of the loan amount + GST( it varies as per the loan amount)	6% of the foreclosure loan amount within one year and 5% plus GST otherwise.
IndusInd Bank	9.50%	Up to 2%	NIL
RBL Bank	10.45-11.80%	Rs. 5000-15000	Nil for floating rate loans
Andhra Bank	8.75%	0.5% of the loan amount	NIL

Home Loan Process

Apply IndusInd Bank Home Loan Online

• The customer may apply online for a home loan through mymoneykarma website.

• The prospective applicant needs to provide some critical details to receive a comprehensive list of home loan offers as applicable to the situation.

• The customer may choose the home loan offer provided by IndusInd Bank and can apply online without providing any documentation at this stage.

• If the loan applicant fits into the eligibility criteria of the bank, a bank representative will contact the applicant to complete the rest of the formalities.

How to Get IndusInd Bank Home Loan Offline

Visit the nearest IndusInd Bank branch and meet the home loan officer to start the process.

Types of Home Loan Products

IndusInd Bank offers attractive interest rates and a multitude of products under its home loan category to cater to the needs of numerous customer segments:

Home Purchase Loans

This loan is provided for purchasing houses or apartments. The banks usually offer a loan at 80%-85% of the market value of a property. They are available for various tenures and at fixed and floating interest rates.

Land Purchase Loans

This loan is offered for the purchase of land for any residential activity, construction, or investment purposes. It cannot be used for buying any agricultural land. Unlike home loans where the loan is provided at 80%-85% of the property value, land purchase loans are offered at 70% of the value of the land.

Home Construction Loan

Home construction loans are offered for constructing a home on an existing land of the borrower. The plot can be empty or created by demolishing the already existing house and building a new one in its place. The loan amount given by the bank for this purpose is usually at 85%-90% of the construction cost.

Home Improvement Loans

These loans help the borrower in all types of a home renovation or improvement works which include paint job, new flooring work, plumbing, and exterior elevation works, etc.

Home expansion loans

These loans are provided to the borrowers for expanding their existing homes. The expansion of home may include the construction of a single room or multiple rooms to build a new floor above the existing house. In these projects, the loan amount could vary from Rs. 20,000 to Rs. 10 lakhs based on the project.

Eligibility Criteria of IndusInd Bank Home Loan

IndusInd Home Loan is offered to all applicants who are either salaried or self-employed or independent professionals. The home loan products have been designed to meet the expectation of a more extensive section of Indian Economy, specifically the middle-class Indian families. The home loan eligibility is determined in a very transparent manner wherein various factors such as age, salary, number of dependents of the individual comes into consideration.

Home Loan Eligibility Based on Salary

Minimum salary to avail this loan should be Rs. 25000

How Much Home Loan Can I Get Based on My Property?

You can borrow a home loan of up to 80% of the property value.

Credit Score and Credit Report

• The first step that any home loan applicant must take is to check the applicant’s credit score. Also, there are multiple options to create a credit report on the internet. A credit report is the one that along with the score keeps a tab on your credit health while reflecting your credit history through past accounts, payments, and helps in determining your eligibility.

• When the bank receives a loan or credit card application, it pulls out the individual's credit score or credit report which is available with several credit bureaus operating in the country.

• The credit score is calculated based on the customer's credit card bills or loans repayment history. This is the first step taken by IndusInd Bank while screening your application. If your credit score is too low, there is a  higher chance of your loan being rejected.

Documents Needed to Apply for IndusInd Bank Home Loans

The essential documents to be submitted while applying for a home loan with IndusInd Bank are:

For salaried employees

• Filled application form

• Passport-size photographs

• Identity Proof: PAN and Passport

• Address Proof: Aadhar card, rent agreement, or document of permanent address.

• Signature Proof

• Salary slips of the last three months

• Form number 16 to validate the income

• Income tax returns of the previous three years

• Bank statement of the last six months

• A cheque of the processing fee

For self-employed professionals

• Filled application form

• Passport-size photos

• Identity proof

• Address proof

• Signature proof

• Education certificates of degrees passed

• Evidence of the existence of business (address proof/registration proof)

• ITR of the last three years (for the individual and the company)

• Profit or loss statement of the previous three years prepared by the CA

• Bank statement of the previous six months

• A cheque of the bank's processing fee

For self-employed businessmen

• Filled application form

• Passport-sized photos

• Identity proof: PAN, driving license and voter id

• Address proof 

• Signature Proof

• Education certificates of degrees passed

• Evidence of the existence of business (address proof/registration proof)

• Profile or designation in the business

• ITRs of the last three years (for the individual and for the business)

• Profit/loss statement of the previous three years prepared by the CA

• Bank account statement of the latest six months

• A cheque of the processing fee

IndusInd Bank Home Loan Charges

• Processing fees:

  • For salaried and self-employed professionals: 1.25% of the loan amount or INR 3,000, whichever remains higher.

  • For self-employed non-professionals: 1.25% of the sanctioned loan amount/Rs. 4,500.

• Prepayment charges: 

  • Nil (for payment up to 25% of the loan amount at the start of the financial year)

  • Prepayment charges: 2% charge + taxes 

  • The part prepayment charge isn't applicable if made after three years of loan disbursal.

  • If the full prepayment is made after three years of the loan disbursal, then a 2% charge + taxes will be applied if payment is made through any bank or financial institution.

• Switching from a higher interest to lower interest rate: 0.50% of the outstanding loan amount (undisbursed loan) or INR 50,000, whichever remains lower.

• Switching from a fixed rate of interest to floating rate: 0.50% of the outstanding loan amount or INR 50,000 or undisbursed loan (whichever remains lower.)

• Check bounce charges: Rs. 200.

• Insurance charges: Subject to the insurance company (it's mandatory to get the property insured.)

• Late EMI payment charges: Additional interest of up to 24% per annum.

• Costs to avail set of documents: Up to Rs. 500.

• Fees to avail photocopy of a collection of papers: Up to Rs. 500.

• Post-dated cheque-swapping charges: Up to Rs. 200.

• Charges for re-appraisal of loan: Up to Rs. 2,000 + taxes.

• Change of loan tenor: Up to Rs. 500.

How to Calculate IndusInd Bank Home Loan EMI?

An EMI calculator allows the prospective borrower to decide and determine how much encumbrances or EMI he/she can bear while applying for the loan. With the help of mymoneykarma's home loan EMI calculator tool, one may decide the budget for the property that he/she is looking for. Following are the quantifiers that a customer needs to calculate in an EMI calculator: 

• The loan amount which the customer desires to apply for.

• Tenure of home loan.

• The interest rate offered by the bank.

IndusInd Bank News

Home Loan EMIs Will Come Down as RBI Cuts Repo Rate

There is good news for the home loan borrowers. The Monetary Policy Committee (MPC) has cut the repo rate by 25 basis points, which now stands at 5.75 percent. As a result, the reverse repo rate has also been adjusted to 5.50 percent, the MSF and the Bank Rate to 6.0 percent. The repo rate is the rate of interest at which banks borrow money from the central bank. When the RBI deducts the repo rate, the banks get money at a lesser cost, and this, in turn, helps in keeping the lending rates low.

Current MCLR of Banks (As of May 2019)

• Axis Bank: 8.80 percent

• HDFC Bank: 8.70 percent

• ICICI Bank: 8.75 percent

• IndusInd Bank: 9.85 percent

• Karnataka Bank: 9.40 percent

IndusInd Bank FAQ

Is the EMI of an IndusInd Bank loan against property fixed, or flexible? What happens when the interest rate increases or decreases?

Typically, the EMI remains constant unless IndusInd Bank approves the customer requests for a change.
In case of floating rate of interest, if the interest rate on your loan increases, IndusInd Bank will typically keep the EMI same but increase the loan tenure of repayment.