Indian Overseas Bank Home Loan

Last Updated : April 4, 2025, 6:29 p.m.

Indian Overseas Bank (IOB) offers a range of home loan solutions designed to help individuals fulfill their dream of owning a home in the name of ‘Subha Gruha’. Whether you are looking to purchase a new house, construct a property, renovate your existing home, or transfer your loan from another lender, IOB provides flexible and affordable financing options. With customer-friendly policies and seamless processing, Indian Overseas Bank Home Loans provide a reliable and cost-effective way to finance your dream home.

Indian Overseas Bank Home Loan Interest Rate Details 2025

Given below are the Indian Overseas Bank Home Loan interest rates and home loan details. Make sure to go through them carefully -

Types of Indian Overseas Bank Home Loan

Here are the various types of Indian Overseas Bank Home Loan with their details -

IOB Subha Gruha Home Loan - For Purchase, construction, or renovation of property.

• Loan-to-Value (LTV) Ratio:
  • 75%-90% of the property cost for home purchase/construction.
  • Up to 70% for plot purchase.
• Tenure: Up to 30 years.

IOB Home Improvement Loan - For Renovation, repair, or modification of an existing house/flat (tiling, painting, rewiring, adding cupboards, etc.).

• Loan Amount: ₹25,000 – ₹25 lakh
• LTV Ratio: Up to 75%
• Tenure: Up to 15 years
  

IOB Home Advantage Loan - For Purchasing of old/new house/flat or home construction, available for applicants with two existing home loans (from IOB or other banks).

• Loan Amount: No upper limit.
• LTV Ratio: Up to 75%.
• Tenure: Up to 30 years.

IOB NRI Home Loan - NRIs can avail of this loan for property purchase, construction, or renovation in India.

• LTV Ratio:
  • Up to 80% for home purchase/construction.
  • Up to ₹15 lakh for renovation.
  • Up to 90% for loans up to ₹20 lakh.
  • Up to 80% for loans up to ₹75 lakh.
  • Up to 75% for loans above ₹75 lakh.
    
• Tenure:
  • Up to 20 years for purchase/construction.
  • Up to 15 years for repair/renovation.
    
• Loan Amount:
  
  • Up to ₹25 lakh for renovation.
  • No upper limit for purchase/construction.

IOB Subhagruha Top-up Loan - Additional financing for existing IOB home loan borrowers (excluding speculative purposes).

• Loan Amount: ₹50,000 – ₹2 crore.
• Tenure:
  • Aligned with the underlying home loan tenure.
  • Maximum 15 years or before the borrower turns 70, whichever is earlier.

IOB Subhagruha Gen-Next - Special home loan scheme for salaried employees in government, PSU, MNCs, or private firms.

• Loan Amount: 20% higher than the regular home loan amount.
• Tenure: Up to 30 years.

Eligibility Criteria for Indian Overseas Bank Home Loan

Indian Overseas Bank offers home loans to a wide range of individuals, ensuring flexibility and ease of access. Below are the eligibility requirements:

General Category

Eligible Applicants:

• Members of Co-operative Societies
• Individuals up to 55 years of age (can be extended to 60 years if legal heirs are co-applicants)
• The loan must be fully repaid before the applicant turns 70

Employment Criteria:

• Salaried Individuals: Must have a permanent job with a minimum of 2-3 years of service .
• Self-Employed Professionals: Must have at least 3 years of experience in their respective field.

This eligibility framework ensures that applicants have financial stability and repayment capacity before availing of the loan.

Scheme-Wise Eligibility Criteria

Documents Required For Indian Overseas Bank Home Loan

Indian Overseas Bank didn't mention any of the documents for the home loan application, but if we go through other banks’ document requirements, some common documents may be asked by the indian overseas Bank while applying for the Indian Overseas Bank Home Loan -

• Application Form – Duly filled and signed.
• • Identity Proof (Any one of the following):
  • Aadhaar Card
  • Passport
  • Driving License
  • PAN Card
  • Voter ID
• Address Proof (Any one of the following):
  • Utility Bills (Electricity/Water/Telephone)
  • Passport
  • Voter ID
  • Aadhaar Card
  • Driving License
• Income Proof:
  • For Salaried Applicants: Salary Certificate
  • For Self-Employed Applicants: Business proof and financial documents
• Property-Related Documents:
  • Sale Agreement for house/flat
  • Construction estimate/valuation report (for property acquisition)
  • Legal assessment of the property by a lawyer or engineer approved by the bank.
• Additional Documents (if applicable):
  • Membership proof for Co-operative Societies
  • Experience certificate for Self-employed applicants.

How can you calculate EMI for Indian Overseas Bank Home Loan

Use an EMI Calculator to easily determine your monthly loan installments. This efficient and user-friendly tool simplifies complex calculations, helping you understand your EMIs and interest payments for an Indian Overseas Bank Home Loan. The Home Loan EMI Calculator operates on a straightforward algorithm, requiring you to enter a few key details to get instant results.

By entering the following details, you can quickly calculate your EMI:

• Loan Amount
• Tenure
• Interest Rate

Example - Suraj Gupta is looking to avail a home loan of Rs 20,00,000. After evaluating his profile, the bank has agreed to offer him the same loan amount at an interest rate of 8.15% p.a. -10.75% p.a. for a tenure of 25 years. Now, what would be interesting here is to know the EMIs on the home loan.

So, let’s find out the same by looking at the table below.

Fee/Charges on Indian Overseas Bank Home Loan

What is the Purpose of Taking an Indian Overseas Bank Home Loan?

Indian Overseas Bank provides home loans for various purposes, including property acquisition, construction, and renovation. Below are the key purposes for which the loan can be availed:

• Purchase or Construction of a New/Old House or Flat:
  • Loans are available for acquiring or constructing up to two houses.
  • If purchasing an old house/flat, the property should not be older than 25 years.
• Home Extension & Renovation:
  • Borrowers can avail loans for the construction of additional rooms, first floor, or second floor on an already owned property.
• Plot Purchase (Subject to Certain Conditions):
  • In Rural & Semi-Urban Areas: The cost of the plot should not exceed 30% of the eligible loan amount.
  • In Metro & Urban Areas: Loan eligibility is determined as per the following criteria:
    • 60% of the Fair Market Value (FMV) of the land
    • 60% of the purchase price
    • 60% of the eligible loan amount
    • The final loan amount will be based on whichever is lower among these three factors.

This flexible home loan scheme ensures that borrowers can finance their property purchase, construction, and home improvement needs based on their eligibility and loan terms.

Summarising!

Indian Overseas Bank (IOB) offers a range of home loan products to meet various housing needs, including purchase, construction, renovation, and top-up loans. With loan repayment tenures of up to 30 years, IOB ensures affordability with competitive interest rates. Specialized schemes like IOB Subha Gruha, IOB NRI Home Loan, and IOB Subhagruha Gen-Next cater to different borrower profiles, including salaried, self-employed, NRIs, and young professionals. Eligibility criteria vary by scheme, but factors like age, employment stability, and income are considered. With simple documentation & customer-friendly terms, IOB home loans are designed to make homeownership more accessible and convenient.