INDIAN OVERSEAS BANK HOME LOAN

Last Updated : Sept. 4, 2026, 1:15 p.m.

Indian Overseas Bank home loan interest rates currently start from 7.20% per annum for eligible salaried applicants with a credit score of 800 or above. Regular floating housing loan rates range from 7.20% to 8.30% per annum, depending primarily on the applicant’s credit score and employment category.

Non-salaried borrowers are generally charged 0.10 percentage points more than salaried borrowers within the same credit score bracket. The final rate offered by IOB can also depend on income stability, repayment capacity, existing obligations, property valuation and the particular housing loan scheme selected.

IOB offers home loans for buying a new or resale property, constructing a house, purchasing a plot with construction, renovating an existing property and transferring an eligible home loan from another lender. Special products are also available for younger salaried borrowers, NRIs, green-certified homes and eligible PMAY-U 2.0 beneficiaries.

INDIAN OVERSEAS BANK HOME LOAN DETAILS

Rates are subject to revision. The applicable rate will be the rate communicated by Indian Overseas Bank at the time of sanction or disbursement.

IOB HOME LOAN INTEREST RATES BY CREDIT SCORE

Indian Overseas Bank uses credit-score-based pricing for its regular floating-rate housing loans . Applicants with stronger credit profiles receive a lower spread over the bank’s benchmark rate.

Applicants with a credit score below 680 may not fall within the bank’s published standard pricing slabs. Approval in such cases will depend on the bank’s credit policy and assessment.

A good credit score does not automatically guarantee the lowest rate. IOB may also examine repayment history, monthly income, employer or business profile, existing EMIs, property documents and the requested loan-to-value ratio.

HOW THE IOB HOME LOAN RATE IS CALCULATED

IOB’s floating home loan rate is linked to its Repo Linked Lending Rate, or RLLR. The borrower’s final interest rate is determined by adding or subtracting the applicable spread from the prevailing RLLR.

For example, the current RLLR is 8.10%. A salaried applicant with a credit score of 800 or above receives a spread of RLLR minus 0.90%, resulting in an effective rate of 7.20% per annum.

When the benchmark changes, the borrower’s floating interest rate may also change according to the loan agreement and reset frequency. A rate increase may result in a higher EMI, a longer tenure or both. A reduction can lower the interest burden, subject to the bank’s reset rules.

IOB HARIT SUBHAGRUHA INTEREST RATES

IOB Harit Subhagruha is meant for eligible green and energy-efficient residential properties. The property or housing project must satisfy the bank’s applicable green-building requirements.

The scheme can be used for purchasing a qualifying plot and constructing a house, constructing on an already owned plot, buying a flat or purchasing a ready-to-move house.

The maximum loan amount is not defined by a single standard ceiling. It is assessed using the borrower’s repayment capacity, eligible property cost and applicable LTV norms.

OTHER IOB HOUSING LOAN RATES

The Easy Plot rate can move to a higher commercial rate if construction is not completed within the applicable period. Borrowers should check the construction deadline and post-deadline rate conditions before choosing a plot loan.

IOB HOME LOAN EMI CALCULATION

Home loan EMI depends on three factors:

• Principal loan amount
• Applicable annual interest rate
• Repayment tenure

The EMI is calculated using the reducing-balance method. While a longer tenure lowers the monthly instalment, it increases the total interest paid over the loan period.

IOB HOME LOAN EMI AT 7.20%

The following calculations use the starting rate of 7.20% per annum.

These are indicative calculations. The actual EMI can differ because of the sanctioned rate, disbursement schedule, reset date, broken-period interest and other loan conditions.

HOW CREDIT SCORE AFFECTS YOUR EMI

For a ₹20 lakh home loan with a 20-year tenure:

A difference of just 1.10 percentage points increases the EMI by approximately ₹1,357 in this example. Over a long tenure, the difference in total interest can be substantial. Checking and improving your credit score before applying may therefore help reduce the overall borrowing cost.

INDIAN OVERSEAS BANK HOME LOAN SCHEMES

IOB Subha Gruha

This is IOB’s regular housing loan scheme. It can be used to purchase or construct a new house, buy an eligible resale property or add rooms or floors to an existing residential property.

The loan may finance approximately 75%–90% of the eligible property cost, depending on the loan amount and applicable LTV conditions. Repayment can extend up to 30 years.

IOB Subhagruha Gen Next

Subhagruha Gen Next is designed for salaried employees between 21 and 45 years of age working with eligible private companies, multinational companies, public sector organisations or government departments.

Key features include:

• Net monthly income of at least ₹30,000
• Eligibility for up to 20% more than a normal housing loan, subject to assessment
• Maximum repayment tenure of 30 years, including the permitted holiday period
• Loan to be repaid before the borrower reaches 70 years

Higher eligibility does not mean that every applicant will receive a larger loan. The sanctioned amount will still depend on income, existing obligations and the property value.

IOB Harit Subhagruha

This scheme is intended for eligible green or energy-efficient residential properties. It covers the purchase of qualifying flats and houses, construction on an owned plot and eligible plot-plus-construction proposals.

IOB Home Improvement Loan

The Home Improvement Scheme can be used for repairs, renovation and upgrading an existing residential property.

The loan amount can range from ₹25,000 to ₹25 lakh, with a maximum repayment period of 15 years. A margin of approximately 25% applies. IOB may require a mortgage over the property being improved or another acceptable property, depending on the proposal.

IOB Easy Plot Loan

IOB Easy Plot provides finance for purchasing an eligible residential plot.

The loan amount can range from ₹10 lakh to ₹3 crore, subject to eligibility. A margin of approximately 25% applies. Borrowers should carefully review the construction requirement because a higher commercial interest rate may apply if construction is not completed within the prescribed period.

IOB Home Advantage

IOB Home Advantage is a separate housing-related product with interest rates ranging from 8.75% to 9.75% per annum under the current floating-rate grid. It may be suitable for eligible customers requiring additional housing finance under the scheme’s conditions.

Because its rate is higher than the regular home loan rate, applicants should compare its purpose, repayment flexibility and total interest cost before applying.

IOB NRI Home Loan

Eligible non-resident Indians may apply for an IOB housing loan to purchase, construct or renovate residential property in India. Income and repayment documents may include overseas employment records, bank statements, passport, visa, work permit and NRE or NRO account details.

The exact eligibility and documentation depend on the applicant’s country of residence, employment status and proposed property.

IOB Gharonda 2.0

IOB Gharonda 2.0 supports eligible applicants under the PMAY-U 2.0 interest subsidy framework.

Households with annual income of up to ₹9 lakh may qualify, subject to scheme rules. Eligible housing loans can be up to ₹25 lakh for a property valued at up to ₹35 lakh. The subsidy is calculated at 4% on the first ₹8 lakh for an eligible tenure, with the maximum benefit subject to the scheme limit.

Applicants must satisfy the government’s property ownership, household income and beneficiary-family conditions. Subsidy approval is separate from normal home loan approval.

IOB HOME LOAN ELIGIBILITY

Indian Overseas Bank may consider applications from:

• Salaried employees
• Self-employed professionals
• Business owners
• Individuals earning income from agriculture, trade or other acceptable sources
• Eligible NRIs
• Joint applicants with independent and verifiable income

General eligibility conditions include:

• Minimum age normally 21 years
• Maximum entry age generally 60 years
• Loan normally repaid before the primary applicant reaches 70 years
• Stable and verifiable income
• Acceptable credit history
• Sufficient repayment capacity after existing obligations
• Clear and legally acceptable property title
• Compliance with the applicable LTV and margin requirements

If the applicant is older than 55, IOB may require the spouse or a legal heir to join as a co-applicant or co-obligant.

The exact age, service history and income requirements may differ by product. Adding an earning spouse or another eligible family member can improve the combined loan eligibility, although both applicants become responsible for repayment.

DOCUMENTS REQUIRED FOR AN IOB HOME LOAN

Identity and address documents:

• PAN card
• Aadhaar card
• Passport, voter ID or driving licence
• Recent photographs
• Current and permanent address proof

For salaried applicants:

• Recent salary slips
• Salary-account bank statements
• Form 16
• Income-tax returns, where required
• Employment or appointment proof
• Details of existing loans and EMIs

For self-employed applicants:

• Income-tax returns with computation
• Audited or certified financial statements
• Business registration documents
• GST returns, where applicable
• Business and personal bank statements
• Proof of business continuity
• Details of existing business and personal borrowings

Property documents:

• Agreement to sell or allotment letter
• Title deed and previous ownership documents
• Approved building plan
• Construction estimate, where applicable
• Property-tax receipts
• Encumbrance certificate
• Completion or occupancy certificate for applicable properties
• Builder and project approvals
• No-objection certificate, where required

NRI applicants may additionally need to provide passport, visa, work permit, overseas address proof, employment contract, salary records and NRE or NRO account statements.

IOB HOME LOAN MARGIN AND LTV

IOB can generally finance around 75%–90% of the eligible cost of the house or flat. The borrower must contribute the remaining amount from personal funds.

The eligible property value is normally based on the lower of:

• The property cost stated in the agreement; or
• The fair market value determined through the bank’s approved valuation process

Stamp duty, registration expenses and some documentation costs may not be included when calculating the eligible property value. Borrowers should therefore keep sufficient funds available for both the down payment and transaction-related expenses.

IOB HOME LOAN PROCESSING FEES AND OTHER CHARGES

Processing charges vary according to the scheme, loan amount and any offer available when the application is submitted. GST and other applicable taxes may be charged separately.

Other expenses may include:

• Legal examination charges
• Property valuation charges
• Documentation charges
• Mortgage creation expenses
• CERSAI registration fee
• Stamp duty and registration costs
• Insurance premium, if insurance is selected
• Penal charges for delayed payment

Some IOB product pages may display processing-fee concessions. These should not be presented as permanent benefits unless the bank confirms their validity for the customer’s application date and loan scheme.

For IOB Easy Plot, the listed processing charge for non-staff borrowers is 0.50% of the loan amount, capped at ₹25,000, with documentation charges as applicable.

HOW TO IMPROVE YOUR IOB HOME LOAN ELIGIBILITY

Maintain a strong credit score

A score of 800 or above can help an eligible salaried applicant qualify for the lowest published rate. Pay loan EMIs and credit-card bills on time and avoid multiple fresh credit applications immediately before applying.

Reduce existing monthly obligations

Paying off a small personal loan or reducing credit-card balances can improve the disposable income available for the home loan EMI.

Choose a suitable tenure

A longer tenure reduces the EMI and may improve eligibility. However, it also increases the total interest payable, so choose a tenure that balances affordability with borrowing cost.

Apply with an earning co-applicant

Combining income with an eligible spouse or family member may improve the sanctioned amount. The co-applicant’s existing obligations and credit history will also be considered.

Make a larger down payment

A lower loan-to-value ratio reduces the amount borrowed and can strengthen the application. It also reduces both the EMI and total interest outgo.

Keep income documents consistent

Salary credits, bank statements, tax returns and declared income should support one another. Unexplained cash deposits or major variations can delay the assessment.

HOW TO APPLY FOR AN INDIAN OVERSEAS BANK HOME LOAN

1. Check your credit score and estimate the required loan amount.
2. Compare the applicable IOB rate for your credit and employment category.
3. Calculate the expected EMI for different tenures.
4. Submit basic personal, income and property information.
5. Provide KYC, income and property documents.
6. Allow the bank to complete credit, legal and technical verification.
7. Review the sanction letter, including the rate, spread, reset conditions and charges.
8. Complete the loan and mortgage documentation.
9. The bank will disburse the loan according to the property transaction or construction stage.

Do not rely only on the starting interest rate. Review the benchmark, spread, reset frequency, processing costs, prepayment rules and total repayment amount before accepting the loan.