Oriental Bank of Commerce Home Loans

Table of Contents

• Oriental Bank of Commerce Home Loan Interest Rates
• Eligibility Criteria for Oriental Bank of Commerce Home Loan
• Oriental Bank of Commerce Home Loan Schemes
• Oriental Bank of Commerce Home Loan for NRI or PIO
• How To Apply for Oriental Bank of Commerce Home Loan
• How To Apply for Oriental Bank of Commerce Home Loan

 

Introduction

Oriental Bank of Commerce was established many years ago in Lahore. Following partition, it closed down its branches and moved to Amritsar. OBC’s home loans are some of the best in the market. They have the best interest rates in the market.

OBC home loans are also well known for another reason. OBC’s home loans also have some of the most extensive loan tenures in the market of up to 40 years. This is highest tenure among all home loans presently in the market.

OBC home loans are available to salaried employees of state government and central government offices. If you are a self employed individual you can secure a home loan too. Even NRIs and POIs can apply for a home loan from OBC.

Home loans can be availed for a variety of reasons. If you are purchasing a plot of land to build your house on or a already built up or a semi built house. OBC’s home loan can also be used for repairs and renovations around your house. If you want to get your house furnished, like loan to buy refrigerators or televisions. Any major furnishing purpose you have, OBC home loan will work for you.

Oriental Bank of Commerce Home Loan Interest Rates

Interest rates are as of 2019

Loan Tenure	MCLR
Overnight	8.25%
1 month	8.30%
3 months	8.45%
6 months	8.55%
1 year	8.60%

 

Loan Amount	Margin	Rate of interest
Up to Rs.30 lakh	>=20%	1 year MCLR
	10% to 20%	1 year MCLR +0.10%
Above Rs.30 lakh and Rs.75 lakh	>=25%	1 year MCLR
	20% to 25%	1 year MCLR+0.10%
Above Rs.75 lakh	>=25%	1 year MCLR

Eligibility Criteria for Oriental Bank of Commerce Home Loan

Particulars	Age
Minimum age	18 years
The maximum age for salaried individuals with no pension	60 years
The maximum age for any individual and salaried individuals with pension	70 years

 

The eligibility criteria for a home loan from OBC are not extended and can be applied for by anyone. An OBC home loan is available for:

• The minimum age limit is 18 years.
• The maximum age limit is 60 years for salaried individuals with no pension
•   The maximum age is 70 years for salaried individuals with a pension account.
• The individual must have a regular income.
• The loan is available for individuals or a group of specified individuals, also called co-borrowers.
• Salaried or self-employed individuals can avail the home loan, professionals, people in business or farmers, Hindu Undivided Families (HUFs)
• OBC’s home loan is also available for staff, Non-Resident Indians and PIOs.

Oriental Bank of Commerce Home Loan Schemes

OBC House Furnishing Loan

Interest rate	9.75%
Age limits	18 years to 70 years
Loan tenure	Up to 40 years
Loan amount	Up to 25 lakh (up to 30% of the existing property value)
Margin	Max 25% of furnishing cost

 

• OBC provides loans to help furnish your homes. The loan amount is offered to purchase durable consumer items like laptops, refrigerators, air conditioners, etc.
• The loan can be repaid up to 40 years or 60 EMIs.
• The loan is not permissible for any illegal personal use.
• This loan can also be applied to buy life insurance plans under group protection scheme for the loan applicants.

 

Main home loan by the bank

Salaried individuals or self-employed individuals can avail the housing loan by OBC.

For self-employed applicants, there has to be proof that the individual was in their particular business line for a minimum of three years.

In case of salaried professionals, there has to be proof that they were in employment for a minimum period of two or three years in total and minimum one year at their current workplace.

Existing customers of OBC can enjoy special interest rates and preference over loan approval.

OBC’s house loan has the most extensive loan tenure in the market of 480 months or 40 years. This loan also has a moratorium period or a period during which there is no need for payments.

OBC’s house loan has a moratorium period of 18 months. OBC house loan can be applied to by applicants for the following reasons:

• Purchasing plots of land to subsequently construct their houses on
• Purchasing already built up or semi built houses or flats
• Construction of a house on a plot of land already possessed by the applicant.
• To repair or improve an existing house or a flat.
• To furnish a house with consumer durables like refrigerators, air conditioners, etc.
• Balance transfer of the home loan from another bank
• Purchase of under-construction flat.

 

Amount of loan can be taken under this loan scheme

The upper limits for the housing loan from OBC are different for their regular housing loan and their home furnishing loan.

OBC has set no upper loan limit for their home loan. It will depend on the income and the financial history of the applicant. The maximum permissible loan amount will be calculated based on the income of the individual and also of the co-applicant. In case there is more than one owner of a property piece, the income of the joint owner will be considered.

OBC also provides a loan to help furnish homes or flats. The furnishings for this type of loan are limited to durable consumer items only.

Items like laptops, refrigerators, air conditioners, televisions, etc. will fall in the consumer durables category.

There is a margin of 25% of furnishing cost that OBC charges. OBC provides home loan amount for furnishing purposes of up to a maximum of Rs.25 lakhs or up to 30% of the property value.

The financial history of the applicant is also firmly looked at before deciding the maximum loan amount.

Oriental Bank of Commerce Home Loan for NRI or PIO

OBC allows non-resident individuals (NRIs) or a person of Indian origin (POI) to apply for their home loan. OBC’s house loan can be used to buy several residential and commercial properties.

The loan can be paid off through remittances done from their foreign country or use the sales process of immovable property. Much of the eligibility criteria to avail a house loan for an Indian resident is the same for an NRI or POI.

The interest rate that is available for an NRI or POI to get a home loan from OBC is 9.75%.

During the time of loan application, the applicant must have completed 18 years of age. There are two different maximum ages for the applicant, depending on whether the applicant has a pension or not. If the applicant is a pensioner, then the maximum age limit is 70 years, and if there is no pension, then the maximum age is 60 years.

Any salaried or self-employed NRI or POI can apply for a home loan from OBC. In case of a salaried individual, there has to be regular income, and they have to have a minimum total employment of two or three years and minimum one year with the current organization. Self-employed individuals also need to be in their current line of business for three years minimum.

          

Home Loan Eligibility for NRI or PIO

Millions of Indians have established residence abroad in other countries over the years. NRIs or POIs as they are commonly known as, often find themselves yearning to come back home at some point.

Any person who has been residing outside India for 182 days or more is legally an NRI as per government guidelines. If any such individual decides to come back to India, they might look to applying for a home loan, to build their base or home here in India.

Luckily, RBI has allowed banks to lend money to NRIs and PIOs.

OBC allows for their home loans to be applied to by non-resident Indians (NRI) and also by Person of Indian Origin (POI). Much of the eligibility criteria are the same for NRIs and POIs as it is for resident India applicants too.

The general eligibility criteria that have to be met by a non-resident Indian and person of Indian origin applicants are:

• The minimum age of the applicant must be 18 years of age.
• The maximum age limit of the applicant, if they are salaried and have no pension, is 60 years.
• The maximum age limit of the applicant, if they are salaried and a pensioner is 70 years.
• The applicant must have a regular income or salary coming in.

 

The home loan details like interest rate, loan tenure, etc. that the NRI or POI individual would face are:

Interest rate	8.25% to 9.75%
Loan amount	Up to Rs.35 lakh or 30% of the property value
Margin	15% of the cost of construction
Loan tenure	Up to 40 years
Repayment period	For home loan: Up to 480 months including 18 months moratorium period. For home furnishing loan: Up to 120 months
Processing fee	0.50% of the loan amount. Minimum Rs.2,000 and maximum Rs.30,000 plus taxes as applicable

 

There are certain additional criteria that are different for NRIs. They are:

• NRIs can avail a housing loan to purchase any number of residential or commercial properties as they wish.
• Residents of some countries are required to get permission from RBI before buying any immovable property in India. Citizens of Bangladesh, Pakistan, Sri Lanka, Afghanistan, China, Iran, Nepal, and Bhutan fall into this category. Citizens of any other country can freely apply for a home loan at OBC.
• The loan amount the applicant applies for can be used for personal or business need in India only.
• The loan amount can be repaid off through remittances from abroad or through debit to NRO/NRE/FCNR (B) account. The applicant can also make the payment through the sale process of immovable properties.

The application process is straightforward and easy. One can even do it from the comfort of the homes, making the process less of a headache for the NRI who is still settling in.

Take help of our article for the eligibility criteria and list of documents you need to submit with your application.

How To Apply for Oriental Bank of Commerce Home Loan

Applying for a home loan is quite an easy process if you have all your documents in place.

• Check eligibility. It is important for a home loan applicant to check his eligibility before applying for the loan. Several features are accounted for in the eligibility criteria; hence, this step is essential.
• Prepare documents. List all the credentials you will need and prepare copies of it to submit with your application.
• Start your application process. You can apply for the loan by visiting a branch near you, or you can do it online too. At the branch office, you can also get all your queries and doubts answered by the representatives.

Alternatively you can apply for the home online through OBC’s website.

Document Checklist for Oriental Bank of Commerce Home Loan

It is essential to have all of them ready when you start your application process. The bank might request you to submit additional documents if need be.

Document Category	What can be submitted
Identity proof	PAN, Passport, Driver’s license, etc.
Address proof	Utility bills, Passport, etc.
Income proof	Bank statements of 6 months, salary slips, form 16/income tax return copies
Property documentation	The valuation report, lawyer’s report regarding Title clearance.

                       

The documentation list to submit with your home loan application is not long. RBI requires one to provide only the supporting documents to prove identity, address, income, and proof of title of the property for the home loan.

Salaried individuals also need to submit income tax returns copies of the last two years.

For self-employed individuals, some documents may be different.

They might be required to submit:

• Income proof in the form of profit and loss statement etc.
• Evidence of business continuation in their line of business.
• Income tax returns copies of last two-three years.

In case there is a guarantor or a co-applicant, the above documents list will apply to them too. They also need to submit their specific documents. The bank might require you to provide more documentary proof if they need so.