Indian Overseas Bank Home Loan Highlights |
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Interest Rates | 8.40% p.a. onwards |
Loan Amount (LTV Ratio) | Up to 90% of cost of house/flat |
Tenure | Up to 30 years |
Processing Fee | 100% waiver |
Note: Rates as of 7th December 2023

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Table of Contents
Indian Overseas Bank (IOB) Home Loan Interest Rates
IOB Shubha Gruha Housing Loan/ IOB Gen-Next Housing Loan/IOB NRI Housing 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 Home Improvement Loan Interest Rates
Loan Amount | Interest Rate (p.a.) |
Up to Rs 2 lakh | 9.65% |
Above Rs 2 lakh | 9.80% |
IOB Home Advantage Interest Rates
Loan Amount | Interest Rate (p.a.) |
Up to Rs 30 lakh | 10.95% |
Above Rs 30 lakh to Rs 75 lakh | 11.00% |
Above Rs 75 lakh | 11.15% |
IOB Shubha Gruha CC Loans Interest Rates
Loan Amount | Interest Rate (p.a.) |
Up to Rs 30 lakh | 9.70% |
Above Rs 30 lakh to Rs 75 lakh | 9.75% |
Above Rs 75 lakh | 9.90% |
IOB Housing Top-up Loans (Existing Loans) Interest Rates
Loan Amount | Interest Rate (p.a.) |
Up to Rs 1 crore | 11.75% |
Above Rs 1 crore | 12.25% |

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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 | 8.40% - 10.15% p.a. | 8.40% - 10.05% p.a. | 8.40% - 10.05% p.a. |
HDFC Bank Limited | 8.35% p.a. onwards | 8.35% p.a. onwards | 8.35% p.a. onwards |
LIC Housing Finance | 8.40% – 10.35% p.a. | 8.40% – 10.55% p.a. | 8.40% – 10.75% p.a. |
ICICI Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
Kotak Mahindra Bank | 8.70% p.a. onwards | 8.70% p.a. onwards | 8.70% p.a. onwards |
PNB Housing Finance | 8.50% - 14.50% p.a. | 8.50% - 14.50% p.a. | 8.50%-11.45% p.a. |
Punjab National Bank | 8.45%-10.25% p.a. | 8.40%-10.15% p.a. | 8.40%-10.15% p.a. |
Bank of Baroda | 8.40% - 10.65% p.a. | 8.40% - 10.65% p.a. | 8.40% - 10.90% p.a. |
Union Bank of India | 8.40% – 10.80% p.a. | 8.40% – 10.95% p.a. | 8.40% – 10.95% p.a. |
IDFC First Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
L&T Finance Limited | 8.60% p.a. onwards | 8.60% p.a. onwards | 8.60% p.a. onwards |
Bajaj Housing Finance | 8.50% p.a. onwards | 8.50% p.a. onwards | 8.50% p.a. onwards |
Tata Capital Housing Finance | 8.70% p.a. onwards | 8.70% p.a. onwards | 8.70% p.a. onwards |
Federal Bank | 8.80% p.a. onwards | 8.80% p.a. onwards | 8.80% p.a. onwards |

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Indian Overseas Bank Home Loan Fees and Charges
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 |
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.

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Indian Overseas Bank Home Loan Eligibility Criteria
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

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Additional Read Home Loan Eligibility Criteria
Documents Required for Indian Overseas Bank Home Loan
- Duly filled application form
- 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

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Additional Read Document Required for home loan
FAQs
1. Can I choose between fixed and floating rates?
Ans. Indian Overseas Bank offers home loans at floating rates only.
2. Can I prepay my home loan availed from Indian Overseas Bank?
Ans. 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.
3. What is the holiday period for Indian Overseas Bank Home Loan?
Ans. 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.
4. What is the minimum credit score required to avail Indian Overseas Home Loan?
Ans. 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.
5. What factors determine the loan amount eligibility for Indian Overseas Bank Home Loans?
Ans. The Indian Overseas Bank considers loan amount eligibility for their home loan applicants based on their income, repayment capacity and the actual estimate of work to be undertaken.