IOB Home Loan Interest Rate 2020

Last Updated 10th Mar 2020

Indian Overseas Bank Housing Loan Apr 2020

Notice: MyLoanCare team is fully functional. You can apply for Home Loan, check eligibility and submit documents online.

Indian Overseas Bank's home loan interest rate starts from 8.20%, which is one of the best home loan rates in India. Check Best Offers

Loan AmountIndian Overseas Bank Repo Rate Home Loan RateRate for Female BorrowerRateIndian Overseas Bank Repo Rate Home Loan Rate New Repo Rate
Upto ₹ 30 Lakh8.20%N/AN/A
₹ 30 Lakh - ₹ 75 Lakh8.30%N/AN/A
₹ 75 Lakh - ₹ 2 Cr8.45%N/AN/A
Above ₹ 2 Cr8.45%N/AN/A
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Indian Overseas Bank Home Loan

Indian Overseas Bank offers housing loan to people who want money to purchase a house, home renovation and home extension etc. The house itself acts as a security to the loan. Indian Overseas Bank Housing loan rate of interest is best in the market.

    Compare Home Loan Rates of All Banks in India

    Indian Overseas Bank Home Loan Rate

    Indian Overseas Bank home loan interest rates are in the range of 8.20% to 8.45%, with special discounted rates for specific category of borrowers such as ladies borrowers for whom the bank offers the lowest interest rate of 8.20%.

    ProductsInterest Rates
    Indian Overseas Bank Repo Rate Home Loan8.20% - 8.45%

    IOB Housing Loan

    Lowest IOB Home Loan Rate8.20% Compare Offers
    Interest Rate Linked toRLLR
    Processing Fee Upto 0.53%
    Minimum ₹ 8,900 Maximum ₹ 13,350
    Max Tenure30 years
    Lowest EMI₹ 748 per lakh
    Prepayment ChargesAllowed with Nil charges for floating rate loans
    Check Prepayment Rules
    AgeMin 21 and Max 60 years for Salaried
    Min 21 and Max 60 years for Self Employed

    Latest IOB home loan rate starts from 8.20% , as applicable based on the RLLR. Any change in RLLR will translate into a similar change in the bank’s home finance rate. Indian Overseas Bank housing finance interest rate depend upon the loan amount, salary and occupation of the borrower, nature of property and type of home loan scheme.

    • Loan amount: Housing loan rate in Indian Overseas Bank depends upon the loan amount you apply for. Higher the loan amount, lesser will be the rate.
    • Your Salary: Income helps in identifying the amount of loan that you can be eligible for. Bank's rate varies with your monthly income. Higher the income, lesser will be the rate as higher will be the loan amount.
    • Type of loan opted for: Indian Overseas Bank also offers discounted or special rates for women borrowers to ensure that women own a house and become financially independent. If you are planning to take loan, adding a women co-applicant can help you get the lowest rates from Indian Overseas Bank.
    • Existing bank customers: Indian Overseas Bank offers lower home loan rates to its existing bank account customers as compared to new bank customers, as it understands the past banking history of the customer and hence, is comfortable in sanctioning loan.

    Indian Overseas Bank Home Loan Processing Fee

    Indian Overseas Bank charges processing fees of upto 0.53% of the loan amount from its home loan customers to cover its expenses of conducting credit appraisal and technical evaluation of property. The processing fees has to be paid at the time of loan application and is generally non refundable. In addition to 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

    Indian Overseas Bank Home Loan Prepayment

    Indian Overseas Bank charges Nil fees on prepayment of floating rate loans, as per RBI rules which prohibit banks from charging prepayment penalty on loans with floating rate of interest. If you decide to foreclose or transfer your housing loan to another bank, you need to apply for the same to Indian Overseas Bank. However, if you have taken a fixed rate home loan from Indian Overseas Bank, you will need to pay a foreclosure fees to close your account or transferring it another bank as per your loan agreement with Indian Overseas Bank.

    Indian Overseas Bank Home Loan Procedure

    If you want to get a housing loan from Indian Overseas Bank, the process of getting the loan is fairly easy. All you need to do is to apply for a home loan at MyLoanCare. We are a channel partner of all top banks in India including HDFC, SBI, Axis Bank, Citibank. Your loan application will be processed online, and Indian Overseas Bank’s representatives will get in touch to begin the process of getting a home finance. You will also be assisted by MyLoanCare’s housing loan advisor to ensure that all the lending process is smooth, quick and you get the best house loan from Indian Overseas Bank.

    You can also make a comparison of Indian Overseas Bank’s Home Loan Interest rates and other charges using the MyLoanCare comparison tool. Once you apply online, you can check the real time status of your home loan application in your customer account section of MyLoanCare.

    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 Manti 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: Its 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 encourage 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)8.2% to 8.45%
    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: Rs. 1 Lakh
    • Time period: 5 years to 30 years
    • Indian Overseas Bank Home Loan Interest Rate: 8.20% to 8.45%
    • Processing Fee payable to Indian Overseas Bank: Upto Rs. 10,000. Current offer for processing fee is Upto 0.53%
    • Fee payable to MyLoanCare: NIL
    • Total Monthly Cost – From Rs. 748 for a 30 years Rs. 1 Lakh loan at 8.20% (lowest rate, longest time period) to Rs. 2,049 for a 5 years Rs. 1 Lakh loan at 8.45% (highest rate, shortest time period). This is inclusive of principal repayment.
    • Total cost payable over loan tenure: Rs. 32,954 for 5 years loan to Rs. 1.79 Lakh for 30 years loan

    Indian Overseas Bank’s terms and conditions as per loan agreement applicable. Short term loans/ pay day loans not available; minimum loan tenure: 5 years. Rate of interest depends upon income, job stability, loan amount, CIBIL score, credit profile, existing obligations, verification and other factors. Credit at sole discretion of Indian Overseas Bank.

    Indian Overseas Bank Home Loan during Coronavirus

    Indian Overseas Bank has not changed its Home Loan Interest Rate during the Coronavirus period with lowest rate continues to be at 8.20%. However, interest rate can be expected to come down post the RBI repo rate cut of 75 bps announced on 27th March 2020. You may expect some delay in getting a loan from Indian Overseas Bank during the COVID-19 outbreak due to social distancing norms.

    Please apply for Home Loan and talk to our advisor

    Frequently Asked Questions

    What is Indian Overseas Bank home loan procedure?

    You can apply for a Indian Overseas Bank home finance by contacting the bank directly or by applying through online marketplaces like myloancare.in. Availing a loan through an online market place improves the chances of getting the best loan rates, low processing fees and special offers in the form of cash backs. Once you approach the bank, they will collect your documents and initiate the loan process, which includes checking your CIBIL score, property valuation, technical and legal checks on the property, eligibility calculation. The bank will give a decision on your loan based on the evaluation results. You can also check your Indian Overseas Bank home loan status by logging into your customer account with MyLoanCare.

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

    Indian Overseas Bank offers competitive home loan rates with the best EMI of ₹ 748 per lakh availed at a low-interest rate of 8.20% for a maximum tenure of 30 years. If you are paying an EMI more than ₹ 748 per lakh, you should consider the option for a loan transfer to Indian Overseas Bank from your existing bank.

    What is the maximum loan tenure I can opt under Indian Overseas Bank house loan?

    Indian Overseas Bank offers you a longer tenure of 30 years to repay your loan with the benefit of paying less EMI per month.

    Do I get tax benefit on 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.

    Can I foreclose my home loan? What are the charges applicable?

    Yes, you can foreclose your loan with Nil charges.

    Can I transfer my house loan from another bank to Indian Overseas Bank?

    Yes, Bank gives you the facility to transfer your existing loan with a hassle-free process. Availing loan transfer to Indian Overseas Bank can allow you to save interest, pay lower EMIs, and save money.

    Can I club the income of my spouse with mine and apply for joint home loan?

    You can club the income of your spouse to increase your home loan eligibility if the spouse is co-owner of the property or guarantor of the loan.

    What is the benchmark applicable for housing loan?

    The benchmark applicable for home loan in Indian Overseas Bank is RLLR .

    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 loan.

    How will Indian Overseas Bank housing loan rate of interest change in the future?

    • Indian Overseas Bank offers RBI Repo Rate linked home loan which starts at 8.20%. Current Repo Rate of RBI is 4.40%. Bank adds a mark up on RBI’s repo rate which is called Repo Linked Lending Rate (RLLR). RLLR can change with change in Repo Rate. An additional spread is applied on RLLR which remains same throughout the tenure. Bank applies a premium of 3.8% 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 bank 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's Repo Rate linked home loan rate will cut from 8.20% to 8.05%.

    What is the current Indian Overseas Bank home loan rate?

    The current Indian Overseas Bank home loan rate starts from 7.15%

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    IOB Home Loan News - Apr 2020
    • 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.
    • 2019-08-30 : Cheaper Indian Overseas Bank Home Loan for women
      In a bid to encourage women property rights, IOB launched cheaper home loans for women. This is done by providing low-interest rates and special concessions for women by terminating processing fees, documentation charges, cibil charges, and legal expenses. However, the offer is applicable up to December 31, 2019, only when a woman is a single borrower of a home loan or either a co-borrower.
    • 2019-08-16 : Indian Overseas Bank launches 59-minute loan granting scheme for home loan borrowers
      With the launch of a new initiative by the Indian Overseas Bank (IOB), applying for a housing loans have become easy now. Now the home loan borrowers will get the loan within 59 minutes after the verification check. This would, in turn, allow customers to submit their documents online, making the home loan application process hassle-free.
    *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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