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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 | 7.35% p.a. onwards |
| Loan Amount (LTV Ratio) | Up to 90% of the cost of a house/flat |
| Tenure | Up to 30 years |
| Processing Fee | Up to 0.50% of the loan amount |
Note: Last updated on 1 September 2025
Table of Contents
IOB Home Loan Interest Rates
Indian Overseas Bank Home Loan interest rates for fresh home loan borrowers start from 7.35% 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/Subhagruha Gen Next Interest Rates
For Salaried Individuals
| Risk Grade | Interest Rates (p.a.) |
| CIC-1 (>= 800) | 7.35% |
| CIC-2 (775 to 799) | 7.40% |
| CIC-3 (750 to 774) | 7.70% |
| CIC-4 (725 to 749) & NTC | 8.00% |
| CIC-5 (700 to 724) | 8.10% |
| CIC-6 (680 to 699) | 8.35% |
| CIC-7 (680 & Below) | Reject |
For Non-Salaried Individuals
| Risk Grade | Interest Rates (p.a.) |
| CIC-1 (>= 800) | 7.45% |
| CIC-2 (775 to 799) | 7.50% |
| CIC-3 (750 to 774) | 7.80% |
| CIC-4 (725 to 749) & NTC | 8.10% |
| CIC-5 (700 to 724) | 8.20% |
| CIC-6 (680 to 699) | 8.45% |
Note: The above interest rates are applicable to state-specific home loans like Moghara, TNBLN/AHP and AHPAP.
IOB Home Improvement Loan Interest Rates
| Risk Grade | Interest Rates (p.a.) |
| CIC-1 (>= 800) | 9.90% |
| CIC-2 (775 to 799) | 9.95% |
| CIC-3 (750 to 774) | 10.00% |
| CIC-4 (725 to 749) & NTC | 10.10% |
| CIC-5 (700 to 724) | 10.30% |
| CIC-6 (680 to 699) | 10.50% |
IOB Home Advantage Interest Rates
| Risk Grade | Interest Rates (p.a.) |
| CIC-1 (>= 800) | 9.00% |
| CIC-2 (775 to 799) | 9.10% |
| CIC-3 (750 to 774) | 9.25% |
| CIC-4 (725 to 749) & NTC | 9.50% |
| CIC-5 (700 to 724) | 9.75% |
| CIC-6 (680 to 699) | 10.00% |
IOB Shubha Gruha CC Loans Interest Rates
| Risk Grade | Interest Rates (p.a.) |
| CIC-1 (>= 800) | 7.85% |
| CIC-2 (775 to 799) | 7.90% |
| CIC-3 (750 to 774) | 8.20% |
| CIC-4 (725 to 749) & NTC | 8.50% |
| CIC-5 (700 to 724) | 8.60% |
| CIC-6 (680 to 699) | 8.85% |
IOB Home Loan Top-up Interest Rates – Shubha Gruha, Home Advantage & NRI Top-up Loan
| Risk Grade | Interest Rates (p.a.) |
| CIC-1 (>= 800) | 9.90% |
| CIC-2 (775 to 799) | 9.95% |
| CIC-3 (750 to 774) | 10.00% |
| CIC-4 (725 to 749) & NTC | 10.10% |
| CIC-5 (700 to 724) | 10.30% |
| CIC-6 (680 to 699) | 10.50% |
Compare Interest Rates on Home Loans for Top Banks & HFCs
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 an 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
Types of Indian Overseas Bank Home Loans
IOB Subha Gruha
Purpose: Indian Overseas Bank offers the IOB Subha Gruha Home Loan scheme for the purchase, construction, or renovation of property.
Loan Amount (LTV Ratio):
- 75%-90% of cost of flat/house
- Up to 70% of the 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 25 lakh
Tenure: Up to 15 years
LTV Ratio: Up to 75%
IOB Home Advantage Scheme
Purpose: Indian Overseas Bank offers Home Advantage Scheme for purchase of old/new house/flat or home construction to applicants already having 2 housing loans from IOB Bank or any other bank
Maximum Loan Amount: No ceiling
LTV Ratio: Up to 75%
Tenure: Up to 30 years
IOB NRI Home Loan
Purpose: NRI applicants can avail IOB NRI Home Loans for purchasing, constructing or renovating houses in India.
LTV Ratio:
- For constructing/purchasing a house- Up to 80% of the cost of the 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 20 years; For repair & renovation: Up to 15 years.
Loan Amount: For repair and renovation – Up to Rs 25 lakh, For others: no ceiling.
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.
IOB Subhagruha Gen-Next
Purpose: Indian Overseas Bank offers the Subhagruha Gen-Next scheme to salaried employees of government, private, MNC, and PSU.
Loan Amount: 20% higher than the normal Housing Loan.
Tenure: Up to 30 years.
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 applicants, a permanent job with 2-3 years of experience would qualify for a home loan.
- For self-employed applicants, a minimum of 3 years of activity in a related field would qualify for a home loan.
For IOB Home Improvement Scheme
- Age: 21 to 60 years
- For Salaried- Must be confirmed in service.
- For Self-employed- ITR must be filed in the last 2 years.
For IOB Subhagruha Top-up Home Loan
- Home loan borrowers are eligible for top-up loans after the completion of a minimum of 1/3rd of the home loan tenure.
- A borrower should have a satisfactory repayment track of at minimum 1 year.
- Valid mortgage and registration of memorandum should have been created in favour of the IOB Bank.
For IOB Home Advantage Scheme
- Age: 18 to 60 years
- Employment:
- Salaried applicants must be confirmed in service.
- Self Employed/ Professional – ITR must be filed in the last 2 years.
- The bank may also consider future rental income from the proposed property.
For IOB Subhagruha Gen-Next
- Salaried employees working in private companies or government or MNC or PSU.
- Age: 21 to 45 years (should not exceed 70 years at the time of last instalment of the loan).
- Minimum monthly net income: Rs 30,000.
For IOB NRI Home Loan
- NRI with a valid Indian passport
- 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 a 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 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.
Home Loan EMI Calculator
₹
%
Year(s)
Home Loan EMI Calculator
Monthly EMI ₹ 15,622
Total Amount Payble ₹ 5,62,395(Principal + interest)
Principal Amount ₹ 5,00,000
Total Interest Payble ₹ 62,395
FAQs on IOB Home Loan
What is the current IOB home loan interest rate?
Indian Overseas Bank offers home loan interest rates starting from 7.35% p.a. onwards depending on the credit profile of its applicants.
What is the processing fee for the IOB Housing Loan?
Indian Overseas Bank offers a home loan processing fee of 0.50% (maximum Rs 20,000) for loan amounts of up to Rs 75 lakh and 0.50% (maximum Rs 25,000) for loan amounts 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 an Indian Overseas Bank Home Loan?
Salaried individuals, self-employed individuals, groups of individuals and cooperative society members are eligible for availing home loans from the 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 a 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.