Disclaimer: Indian Overseas Bank is not a Paisabazaar partner and all content herein is strictly informative in nature. Paisabazaar is not affiliated with, sponsored by or in any way connected to Indian Overseas Bank for home loans. No offers/services from Indian Overseas Bank are being provided by Paisabazaar for home loans. For further information about Indian Overseas Bank for home loans, users are required to reach out directly to Indian Overseas Bank.
Indian Overseas Bank Home Loan Highlights
| Particulars | Details |
| Interest Rates | 8.40%-10.60% p.a. |
| Loan Amount (LTV Ratio) | Up to 90% of the cost of a house/flat |
| Tenure | Up to 30 years |
| Processing Fee | 100% waiver |
Note: Rates as of 11th December 2024
Table of Contents
IOB Home Loan Interest Rates
Indian Overseas Bank Home Loan interest rates for fresh home loan borrowers start from 8.40% p.a. onwards based on the bank’s internal rating for the home loan applicants. The differential interest rates would also depend on the loan applicant’s occupation profile, i.e. salaried or self-employed, irrespective of the loan amount.
IOB Home Loan interest rates are applicable to IOB Shubha Gruha Housing Loan and Special housing loan schemes wherever interest rates are linked to IOB Shubha Gruha Housing Loans, IOB NRI Housing Loan and IOB Gen-Next Housing Loans only.
IOB Shubha Gruha Housing Loan/ IOB NRI Housing Loan Interest Rates
For Salaried Individuals
| Rating Scale | Interest Rates (p.a.) |
| IOB 1 | 8.40% |
| IOB 2 | 8.50% |
| IOB 3 | 8.55% |
| IOB 4 | 9.65% |
| IOB 5 | 9.80% |
| IOB 6 | 10.50% |
| IOB 7 | Reject |
For Non-Salaried Individuals
| Rating Scale | Interest Rates (p.a.) |
| IOB 1 | 8.50% |
| IOB 2 | 8.60% |
| IOB 3 | 8.65% |
| IOB 4 | 9.75% |
| IOB 5 | 9.90% |
| IOB 6 | 10.60% |
| IOB 7 | Reject |
Note: The above interest rates are applicable to state specific home loans like Moghara, TNBLN/AHP and AHPAP
IOB Home Improvement Loan Interest Rates
| Loan Amount | Interest Rate (p.a.) |
| Below Rs 2 lakh | 9.75% |
| Above Rs 2 lakh up to Rs 25 lakh | 9.90% |
IOB Home Advantage Interest Rates
| Rating Scale | Interest Rate (p.a.) |
| IOB 1 | 9.60% |
| IOB 2 | 9.75% |
| IOB 3 | 9.85% |
| IOB 4 | 10.10% |
| IOB 5 | 10.20% |
| IOB 6 | 10.35% |
IOB Shubha Gruha CC Loans Interest Rates
| Loan Amount | Interest Rate (p.a.) |
| Up to Rs 30 lakh | 9.80% |
| Above Rs 30 lakh to Rs 75 lakh | 9.90% |
| Above Rs 75 lakh | 10.05% |
IOB Home Loan Top-up Interest Rates
| Rating Scale | Interest Rate (p.a.) |
| IOB 1 | 9.60% |
| IOB 2 | 9.75% |
| IOB 3 | 9.85% |
| IOB 4 | 10.10% |
| IOB 5 | 10.20% |
| IOB 6 | 10.35% |
Compare Interest Rates on Home Loans for Top Banks & HFCs
| Name of Lender | Up to Rs. 30 Lakh | Above Rs. 30 Lakh to Rs. 75 Lakh | Above Rs. 75 Lakh | |
| SBI | 8.50%-9.85% p.a. | 8.50%-9.85% p.a. | 8.50%-9.85% p.a. | Check Eligibility |
| HDFC Bank Limited | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards | Check Eligibility |
| LIC Housing Finance | 8.50% - 11.25% p.a. | 8.50% - 10.55% p.a. | 8.50% - 10.75% p.a. | Check Eligibility |
| ICICI Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards | Check Eligibility |
| Kotak Mahindra Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards | Check Eligibility |
| PNB Housing Finance | 8.50% - 14.50% p.a. | 8.50% - 14.50% p.a. | 8.50%-11.45% p.a. | Check Eligibility |
| Punjab National Bank | 8.45% - 10.25% p.a. | 8.40% - 10.15% p.a. | 8.40% - 10.15% p.a. | Check Eligibility |
| Bank of Baroda | 8.40% - 10.65% p.a. | 8.40% - 10.65% p.a. | 8.40% - 10.90% p.a. | Check Eligibility |
| IDFC First Bank | 8.85% p.a. onwards | 8.85% p.a. onwards | 8.85% p.a. onwards | Check Eligibility |
| L&T Finance Limited | 8.65% p.a. onwards | 8.65% p.a. onwards | 8.65% p.a. onwards | Check Eligibility |
| Tata Capital Housing Finance | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards | Check Eligibility |
| Federal Bank | 8.80% p.a. onwards | 8.80% p.a. onwards | 8.80% p.a. onwards | Check Eligibility |
| Axis Bank | 8.75%-13.30% p.a. | 8.75%-13.30% p.a. | 8.75%-9.65% p.a. | Check Eligibility |
| Godrej Housing Finance | 8.55% p.a. onwards | 8.55% p.a. onwards | 8.55% p.a. onwards | Check Eligibility |
Indian Overseas Bank Home Loan Fees and Charges
| Particulars | Details |
| Processing Fees | 100% waiver |
| Prepayment/Closure Charges | For loans availed in individual name/takeover loans/pre-closure of loans- NIL Others- 2% of prepaid amount |
How to Apply for IOB Home Loan?
Applicants can apply for IOB Home Loan either through the official website of Indian Overseas Bank or by visiting Indian Overseas Bank branches. Note that home loan features like interest rate, tenure, processing charges, loan amount, etc. vary widely across the lenders depending on their cost of funds and credit risk assessment of their applicants.
Hence, before making any home loan application, applicants should also visit online financial marketplaces like Paisabazaar.com to compare the home loan offers provided by other lenders based on their credit profile.
Check your Home Loan Eligibility with Top Banks/HFCs Click Here
Indian Overseas Bank Home Loan Eligibility Criteria
Below-mentioned are the eligibility criteria for different schemes of IOB home loan.
For IOB Subha Gruha
- Group of individuals
- Co-operative Society members
- Maximum Age- 55 years (60 years of age may also be considered if their legal heirs join them, the loan should be paid back before 70 years of age)
- For Salaried Applicant – Permanent job with 2-3 years of experience would qualify for a home loan
- For Self-Employed Applicant – At least 3 years of activity in related field would qualify for a home loan
For IOB Home Improvement Scheme
- For Salaried- Salaried applicants in permanent service with take home pay of up to 50% of gross salary
- For Self-employed- At least 3 years in the line of activity
For IOB NRI Home Loan
- NRI with a valid Indian passport would
- A person of Indian origin having passport of other countries other than Pakistan, Bangladesh, China, Iran, Afghanistan, Sri Lanka, Nepal and Bhutan
- Minimum Monthly Salary- Rs 10,000
Documents Required for IOB Home Loan
Indian Overseas Bank has not mentioned the documents required for availing home loan. However, the applicants may consider the following documents while applying for home loan application.
- Duly filled application form
- ID Proof- Aadhaar card, passport, driving license, PAN card, Voter ID
- Address Proof- Utility bills, passport, Voter ID, Aadhaar card, passport, driving license
- Income Proof for Salaried Applicants- Salary certificate
- Income Proof for Self-Employed Applicants- Sale agreement for house/flat
- Membership proof for cooperative societies
- Experience certificate for self-employed applicants
- Construction estimate/valuation report for acquisition or legal opinion on the property from the Bank approved by a lawyer or engineer
Note: There are a few banks and HFCs that cater to the home financing requirements of applicants who get their salaries paid in cash or do not have adequate proof of income. Some of these lenders are IDFC First Bank, HDFC, Piramal Housing Finance, PNB Housing Finance and LIC Housing Finance.
Indian Overseas Bank Home Loan EMI Calculator
IOB Home Loan EMI Calculator helps the home loan applicants to find out their Home Loan EMI and interest cost based on their loan amount, tenure and interest rate. This would help them to choose their optimum loan amount and loan tenure based on their repayment capacity.
Monthly EMI ₹ 15,622
Total Amount Payble ₹ 5,62,395(Principal + interest)
Principal Amount ₹ 5,00,000
Total Interest Payble ₹ 62,395
Types of Indian Overseas Bank Home Loan
IOB Subha Gruha
Purpose: Indian Overseas Bank offers IOB Subha Gruha Home Loan scheme for purchase, construction or renovation of property.
Loan Amount (LTV Ratio):
- 75%-90% of cost of flat/house
- Up to 70% of loan amount for plot purchase
Tenures: Up to 30 years
IOB Home Improvement Scheme
Purpose: Consumers can avail Home Improvement Scheme for repair/renovation/modification/upgradation including painting, tiling, routine repair, fixing marbles, rewiring, making additions (cupboards, woodwork), etc. to the existing house/flat.
Loan Amount: Rs 25,000-Rs 15 lakh
Tenure: Up to 12 years
IOB NRI Home Loan
Purpose: NRI applicants can avail IOB NRI Home Loans for purchasing, constructing or renovating houses in India.
Loan Amount (LTV Ratio):
- For constructing/purchasing a house- Up to 80% of cost of house
- For home renovation- Up to Rs 15 lakh
- Up to Rs 20 lakh- Up to 90%
- Up to Rs 75 lakh- Up to 80%
- Above Rs 75 lakh- Up to 75%
Tenure: For purchase/construction of house- Up to 15 years
IOB Subhagruha Top-up Home Loan
Purpose: Existing home loan borrowers of Indian Overseas Bank can avail IOB Subhagruha Top-up Loans over and above their existing home loans to meet their personal requirements, other than speculative purposes.
Loan Amount: Rs 50,000-Rs 2 crore
Tenure: In line with the underlying Home Loan tenure or up to 15 years, whichever is higher or before the borrower attains 70 years of age.
FAQs on IOB Home Loan
What is the current IOB home loan interest rate?
Indian Overseas Bank offers home loan interest rates ranging from 8.40% to 10.60% p.a. depending on the credit profile of its applicants.
What is the processing fee for IOB Housing Loan?
Indian Overseas Bank offers home loan processing fee of 0.50% (maximum Rs 20,000) for loan amount of up to Rs 75 lakh and 0.50% (maximum Rs 25,000) for loan amount above Rs 75 lakh.
What is the minimum credit score required to avail Indian Overseas Home Loan?
Indian Overseas Bank has not specified a cut-off credit score for home loan applicants. However, applicants with credit scores of 750 and above usually have higher chances of availing home loans at lower interest rates.
Who is eligible for Indian Overseas Bank home loan?
Salaried individuals, self-employed individuals, group of individuals and cooperative society members are eligible for availing home loan from Indian Overseas Bank.
What factors determine the loan amount eligibility for Indian Overseas Bank Home Loans?
The Indian Overseas Bank considers loan amount eligibility criteria for home loan applicants based on their income, repayment capacity and the actual estimate of work to be undertaken.
Can I choose between fixed and floating rates?
Indian Overseas Bank offers home loans at floating rates only.
Can I prepay my home loan availed from Indian Overseas Bank?
Yes, you can prepay your home loan availed from Indian Overseas Bank. The bank does not levy any prepayment charges on home loans at floating rates.
What is the holiday period for Indian Overseas Bank Home Loan?
In case of home loan availed for under-construction property, a maximum holiday period of 18 months is allowed from the date of first loan disbursement or the completion of construction. For home loans availed for purchasing housing property and undertaking home improvement, the maximum holiday period is 3 months.