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IOB Home Loan Interest Rates 2021

Indian Overseas Bank Housing Loan Interest Rate

Last Updated 20th Nov 2020

Current Indian Overseas Bank Home loan interest rates for Apr 2021 starts at 7.05% p.a. for a maximum tenure of 30 years. Processing fee on its housing loans is Upto 0.53%, Minimum ₹ 8,900 Maximum ₹ 13,350.

Loan AmountIndian Overseas Bank Repo Rate Home Loan Rate
Upto ₹ 30 Lakh7.05%
₹ 30 Lakh - ₹ 75 Lakh7.15%
₹ 75 Lakh - ₹ 2 Cr7.30%
Above ₹ 2 Cr7.30%
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Indian Overseas Bank Home Loan Interest Rates

Indian Overseas Bank offers various products on home loan. Indian Overseas Bank home loan can be used for the purchase of a flat, home construction loan, extension or improvement loan.

Features

  • Indian Overseas Bank Home Loan Interest Rate starts from 7.05%.
  • Indian Overseas Bank charges a processing fees of Upto 0.53%, Minimum ₹ 8,900 and Maximum ₹ 13,350.
  • Loan Tenure of Home Loan ranges from 5 years to 30 years.
  • Lowest EMI per lakh on home Loan from Indian Overseas Bank is ₹ 669 per lakh offered at the lowest interest rate of 7.05% at the longest loan tenure of 30 years.
  • Indian Overseas Bank allows prepayment of home loans with Nil charges on floating rate loans.
  • Indian Overseas Bank has an average customer rating of 2.5/5.0 from customers who have taken a home loan from the bank.

Indian Overseas Bank Home Loan Rate

Current Indian Overseas Bank home loan interest rates are in the range of 7.05% to 7.30%, with special discounted rates for specific categories of borrowers such as women borrowers for whom the bank offers the lowest interest rate of 7.05%. The table below gives the interest rates on various housing finance schemes of Indian Overseas Bank.

Indian Overseas Bank Home Loan Scheme Interest Rates
Indian Overseas Bank Repo Rate Home Loan7.05% - 7.30%

Indian Overseas Bank Home Loan Charges

Indian Overseas Bank Home Loan Processing Fee

The bank charges a minimum processing of ₹ 3,000. The processing fees is typically non-refundable and has to be paid at the time of loan application. In addition to Indian Overseas Bank housing loan processing fees, the bank also charges certain technical and legal charges which are explained to the customer during the loan process and are payable once the loan application proceeds further.

IOB Home Loan Documents

Documents for Salaried employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 2 years
  • Identity Proof - Passport/ Driving Licence/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Documents for Self-Employed

  • Filled up loan application form
  • 2 Passport Size Photo
  • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Indian Overseas Bank Pradhan Mantri Awas Yojana

The government of India has launched many affordable housing loan schemes to facilitate availing home loan at concessional rates to lower and middle-income groups. Some of the popular schemes are:

a) PMAY or Home Loan Subsidy Scheme: Launched in 2015 to provide houses to the homeless. You can apply for PMAY at Indian Overseas Bank if you fulfil the eligibility criteria. Know more about PMAY Scheme

b) Pradhan Mantri Gramin Awas Yojana:  It focuses on homeless families and offers pucca houses with basic amenities.

c) DDA Housing Scheme: It aims to provide houses to low, middle, and high-income groups.

d) Tamil Nadu Housing Board Scheme: It started in 1961 to provide houses to varied income groups.

e) Mhada Lottery Scheme: It's a lottery scheme launched every year for buyers of varied income groups.

f) Rajiv Awas Yojana: Launched in 2009 with the aim of bringing illegal construction under the formal system and encouraging slum-free India.

Each of these schemes has its conditions with respect to eligibility, the amount of loan that can be borrowed, and the rate of interest.

Illustration on Indian Overseas Bank Home Loan Interest Rate
Maximum Annual Percentage Rate (APR) 7.07% to 7.32%
Representative example of the total cost of the loan, including all applicable fees
Here is an illustration of the total cost of the loan:
  • Total amount borrowed: ₹ 1,00,000
  • Time period: 5 Years to 30 Years
  • Indian Overseas Bank Home Loan Interest Rate: 7.05% to 7.30%
  • Processing Fee payable to: Upto ₹ 530
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From ₹ 669 for 30 Years ₹ 1,00,000 loan at 7.05% (lowest rate, longest time period) to ₹ 1,994 for 5 Years ₹ 1,00,000 loan at 7.30% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Annual Percentage Rate (APR) of charge including all applicable fees: 7.07% to 7.32%
  • Total cost payable over loan tenure: ₹ 19,479 for 5 Years loan to ₹ 1,41,248 for 30 Years loan

FAQs

What is IOB Home Loan interest rate?

IOB Home Loan interest rate ranges between 7.05% to 7.30%.

Why should I opt for balance transfer to Indian Overseas Bank?

Indian Overseas Bank offers competitive Home Loan rates with the best EMI of ₹ 669 per lakh availed at a low-interest rate of 7.05% for a maximum tenure of 30 years. If you are paying an EMI more than ₹ 669 per lakh, you should consider the option for a loan transfer to Indian Overseas Bank from your existing bank. EMIs can be calculated through Indian Overseas Bank Home Loan EMI calculators.

Do I get tax benefits on a Home Loan from Indian Overseas Bank?

As per the Indian Income Tax Act of 1961, residents of India are eligible for tax benefits on the principal amount and interest components of a house finance under section 24 and section 80C of Income Tax Act.

What is the effect of part prepayments on Indian Overseas Bank housing finance EMI ?

Part prepayments help you in reducing the outstanding amount of loan, which in turn will reduce the interest amount due. After making part payments, paying the same Home Loan EMI will increase your involvement towards the principal amount, which will help you in repaying the loan faster.

How to increase my eligibility on Indian Overseas Bank housing loan?

If your spouse or family member is earning well, you can make your spouse or family member the co-applicant for your loan. The combination of both of your income will help you in increasing your eligibility to get a loan.

  • Indian Overseas Bank offers RBI Repo Rate linked Home Loan which starts at 7.05%. Current Repo Rate of RBI is 4.00%. Bank adds a mark up on RBI’s repo rate which is called Indian Overseas Bank Repo Rate Linked Lending Rate (RLLR). RLLR can change with change in Repo Rate. An additional spread is applied on RLLR which remains the same throughout the tenure. Bank applies a premium of 3.05% to the Repo Rate to arrive at this rate.
  • When RBI increases rates, the bank may increase its Repo Rate linked Home Loan rates by the same basis points for all existing and new Home Loans. When RBI cuts interest rates, the IOB Home Loan interest rates will reduce the interest rates by the same basis points, which will be effective from 1st day of the following month.
  • For instance, if RBI slashes Repo Rate by 0.15%, then Indian Overseas Bank Repo Rate linked Home Loan rate will cut from 7.05% to 6.9%.

What is the current Indian Overseas Bank Home Loan rate?

The current IOB Home Loan rate starts from 7.05% with a processing fee of Upto 0.53%, Minimum ₹ 8,900 and Maximum ₹ 13,350


Indian Overseas Bank Home Loan Reviews 2.5/5  by 1 customers
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Indian Overseas Bank Home Loan Availed in Mar-17

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Indian Overseas Bank Home Loan News - Apr 2021
  • 2020-11-09 : IOB posts ₹148-crore net profit in Q2
    Indian Overseas Bank reported a net profit of Rs 148 crore for the second quarter. Net profit grew 22.3% from Rs 121 crore in the June quarter of this fiscal. Total income backed by retail loans like home, personal, gold, two-wheeler and car loan along with business and mudra loans rose 8.1% to Rs 5,431. Interest income increased to Rs 4,363 crore from Rs 4,276 crore a year ago. Further, bank average cost of deposit which include fixed and recurring deposits reduced to 4.89% from 5.41%, while net interest margin improved to 2.18% for the quarter as against 1.86 per cent in the year-ago period.
  • 2020-08-21 : Indian Overseas Bank reported Rs. 120.69 crore net profit in Q1FY21
    Indian Overseas Bank reported a net profit of Rs.120.69 crores for the period ended June 30, 2020, as against a net profit of Rs.143.79 crores for the period ended March 31, 2020. In addition to this, the bank posted a total income of Rs.5233.63 crores backed by retail loans like home, personal, car, two-wheeler and gold loans along with business and mudra loans. Total deposits which include Fixed and recurring deposits increased to Rs 2.26 lakh crore as on June 30, 2020, as against Rs 2.21 lakh crore by June last year.
  • 2020-02-12 : Indian Overseas Bank posted a Q3 loss of Rs. 6,075 crores.
    Indian Overseas Bank reported a Q3 loss of Rs 6,075 crores which was Rs 346 crores in the same period a year ago. Further, driven partially by Home Loans and Personal Loans total income stood at Rs. 5,197 crores and interest income stood at 2,867 crores.
  • 2019-10-01 : Indian Overseas Bank offers repo-linked loans from today
    After RBI directed banks to link their lending rates with external benchmarks, Indian Overseas Bank is set to offer loans linked with repo rate. As per the update, the Bank will provide retail and MSME loans at repo rate+2.85% as the spread. Further, the Bank will also offer the benefit of 0.25% to small borrowers by charging Mudra Loans up to Rs 50,000 at 8.25%. This will be in effect from October 1, 2019.
  • 2019-09-18 : Indian Overseas Bank links its MSME and retail loans to repo rate
    With effect from October 1, 2019, Indian Overseas Bank is set to link its business and retail loans like housing and personal loans to the repo rate. The repo linked lending rate will enable convenient and affordable loans for borrowers. The repo rate will affect the floating interest rate on these loans.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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