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IOB Home Loan Interest Rate

Last Updated 10th Oct 2019

Indian Overseas Bank Home Loan Rate Oct 2019

4th October 2019 – RBI cuts repo rate by 25 bps to 5.15%

Indian Overseas Bank's home loan interest rate starts from 8.65%, which is one of the best home loan rates in India. Check Best Offers

Loan AmountIndian Overseas Bank Home Loan Floating RateRate for Female BorrowerRateRepo Rate
Upto ₹ 25 Lakh8.65%N/AN/A
₹ 25 Lakh - ₹ 75 Lakh8.75%N/AN/A
₹ 75 Lakh - ₹ 2 Cr8.90%N/AN/A
Above ₹ 2 Cr8.90%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.

    Compare Home Loan Rates of All Banks in India
    IOB Home Loan Details
    Interest Rate8.65% onwards
    Compare with Other Banks
    Processing Fee Upto 0.53%
    Minimum ₹ 8,900 Maximum ₹ 13,350
    Max Tenure30 years
    Lowest EMI₹ 780 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

    Home Loan Interest Rates Indian Overseas Bank

    Indian Overseas Bank home loan interest rates are in the range of 8.65% to 8.90%, with special discounted rates for specific category of borrowers such as ladies borrowers for whom the bank offers the lowest interest rate of 8.65%.

    ProductsInterest Rates
    Indian Overseas Bank Home Loan Floating8.65% - 8.90%

    Latest IOB home loan rate starts from 8.65% , as applicable based on the 1 Year MCLR, which is 8.50%, last announced on 10th Oct 19. Any change in MCLR will translate into a similar change in the bank’s home loan rate.

    Indian Overseas Bank housing loan interest depends upon
    • 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 you in identifying your rate of interest. Bank's rate varies with your monthly income. Higher the income, lesser will be the rate
    • Type of loan opted for: Indian Overseas Bank also offers differential rates for women borrowers and also under their fixed and floating rate schemes. The rate of interest may be higher or lower under their special or popular loan product offers.
    • Existing bank customers: Indian Overseas Bank offers one of the lowest home loan rates to its existing bank account customers in view of their past relationship with the bank.

    Indian Overseas Bank Home Loan Processing Fee and Other Charges

    In addition to interest rates, home loan from Indian Overseas Bank also carry some other charges which include:

    • Processing Fee - Indian Overseas Bank applies 0.53% processing charges to account for its expenses incurred for conducting a credit appraisal and completing the lending process.
    • Technical and Legal Charges - Indian Overseas Bank also charges technical and legal charges which are explained to the customer during the loan process. Once you go through the loan application process, you will need to pay these charges based on Indian Overseas Bank rules.
    • Prepayment Charges: If you decide to foreclose or transfer your housing loan to another bank, you need to submit an application for the same to Indian Overseas Bank. As per RBI rules, banks are not allowed to charge prepayment penalty on floating rate home loans. Hence, you can prepay your home loan with Indian Overseas Bank at Nil charges.

    IOB Housing Loan: Apply

    If you want to get a housing loan from Indian Overseas Bank, the process to get 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 loan. You will also be assisted by MyLoanCare’s personal 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 do a comparison of Indian Overseas Bank’s Home Loan Interest rates and other charges using 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

    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
    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
    Illustration on Home Loan Indian Overseas Bank
    Maximum Annual Percentage Rate (APR)8.65% to 8.9%
    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: 8.65% to 8.90%
    • Processing Fee payable to Indian Overseas Bank: Upto Rs. 10,000. Current offer for processing fee is Upto 0.53%
      Minimum Rs. 8,900 Maximum Rs. 13,350
    • Fee payable to MyLoanCare: NIL
    • Total Monthly Cost – From Rs. 780 for a 30 years Rs. 1 Lakh loan at 8.65% (lowest rate, longest time period) to Rs. 2,071 for a 5 years Rs. 1 Lakh loan at 8.90% (highest rate, shortest time period). This is inclusive of principal repayment.
    • Annual Percentage Rate (APR) of charge including all applicable fees: 8.65% to 8.9%
    • Total cost payable over loan tenure: Rs. 34,259 for 5 years loan to Rs. 1.91 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.

    Frequently Asked Questions

    What is Indian Overseas Bank home loan procedure?

    You can apply for a Indian Overseas Bank home loan 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 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 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 in 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 best EMI of ₹ 780 per lakh availed at low interest rate of 8.65% for a maximum tenure of 30 years. If you are paying an EMI more than ₹ 780 per lakh, you should consider 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 a benefit of paying less EMI per month.

    Do I get tax benefit on home loan from Indian Overseas Bank?

    As per Indian Income Tax Act of 1961, residents of India are eligible for tax benefits on principal amount and interest components of a home loan under the 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 1 Year MCLR .

    What is the effect of part prepayments on Indian Overseas Bank housing loan 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 interest rate on Indian Overseas Bank housing loan change in future?
    • Floating rate on Indian Overseas Bank housing loan is linked to its 1 Year MCLR Rate, which is currently at 8.50%. When Bank offers a home loan at 8.65%, it applies a premium of 0.15% to its MCLR Rate to arrive at this home loan rate.
    • When RBI increases rates, the bank may increase its MCLR rate and the applicable interest rate for all existing and new home loans would increase. When RBI cuts interest rates and the bank reduces the MCLR rate, the benefit of lower rates will have to be passed to both old borrowers and new house loan accounts.
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    IOB Home Loan News - Oct 2019
    • 2019-10-01 : Indian Overseas Bank offers repo-linked loans from today news
      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.
    • 2019-07-11 : Indian Overseas Bank to focus on housing and jewelry loans as it eyes profit this fiscal
      Indian Overseas Bank (IOB) is planning to focus more on housing and gold loans during this FY19-20 to augment its overall growth and profit. Also, the lender will focus on improving CASA deposits and reducing bad loans to a significant level.
    *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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