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IOB Home Loan Interest Rates 2020

Indian Overseas Bank Housing Loan Interest Rate

Last Updated 21st Aug 2020

Current Indian Overseas Bank Home loan interest rates for Sep 2020 starts at 7.45% p.a. for a maximum tenure of 30 years. Processing fee on its housing loans is Upto 0.53%, Minimum ₹ 8,900 and Maximum ₹ 13,350.

Loan AmountIndian Overseas Bank Repo Rate Home Loan Rate
Upto ₹ 30 Lakh7.45%
₹ 30 Lakh - ₹ 75 Lakh7.55%
₹ 75 Lakh - ₹ 2 Cr7.70%
Above ₹ 2 Cr7.70%

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 7.45%.
  • 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 ₹ 696 per lakh offered at the lowest interest rate of 7.45% 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 7.45% to 7.70%, with special discounted rates for specific categories of borrowers such as women borrowers for whom the bank offers the lowest interest rate of 7.45%. 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 Loan7.45% - 7.70%

Indian Overseas Bank Bank Home Loan Charges

Indian Overseas Bank Home Loan Processing Fee

Indian Overseas Bank home loan processing charges are 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 bank charges a minimum processing of ₹ 8,900 and has capped the maximum processing fees at ₹ 13,350. 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.

Indian Overseas Bank Home Loan Prepayment

Indian Overseas Bank charges Nil fees on prepayment of floating rate loans, as per RBI prepayment rules which prohibit banks from charging prepayment penalty on loans with floating rate of interest. Hence, it becomes extremely easy to balance transfer your loan from bank to another. If you decide to foreclose or transfer your housing loan to another bank, you need to apply for the same to Indian Overseas Bank for a foreclosure while processing your new home loan application with the new 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.

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)7.45% to 7.7%
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 Lakh
  • Time period: 5 years to 30 years
  • Indian Overseas Bank Home Loan Interest Rate: 7.45% to 7.70%
  • Processing Fee payable to Indian Overseas Bank: Upto ₹ 10,000. Current offer for processing fee is Upto 0.53%
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From ₹ 696 for a 30 years ₹ 1 Lakh loan at 7.45% (lowest rate, longest time period) to ₹ 2,013 for a 5 years ₹ 1 Lakh loan at 7.70% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Total cost payable over loan tenure: ₹ 30,799 for 5 years loan to ₹ 1.61 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.

FAQs

What is IOB Home Loan interest rate?

IOB Home Loan interest rate ranges between 7.45% to 7.70%.

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

Indian Overseas Bank offers competitive Home Loan rates with the best EMI of ₹ 696 per lakh availed at a low-interest rate of 7.45% for a maximum tenure of 30 years. If you are paying an EMI more than ₹ 696 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.

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 7.45%. 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 3.45% 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 7.45% to 7.3%.

What is the current Indian Overseas Bank Home Loan rate?

The current IOB Home Loan rate starts from 7.45% with a processing fee of Upto 0.53%, Minimum ₹ 8,900 and Maximum ₹ 13,350

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Indian Overseas Bank Home Loan News - Sep 2020
  • 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.
  • 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.
*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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