Indian Overseas Bank Home Loan Interest Rate

Last Updated : Feb. 26, 2025, 2:53 p.m.

Indian Overseas Bank (IOB) home loan interest rates start from 8.15% p.a. up to 8.75% p.a (subject to change). IOB provides home loans for purchasing, constructing, or renovating a house, with flexible repayment options. Women borrowers and salaried individuals may get preferential rates. The interest type is mostly floating and linked to the bank’s Repo Linked Lending Rate (RLLR). Processing fees and other charges apply as per bank norms.

To learn more about the Home Loan Interest Rates 2025, read the content below carefully.

Indian Overseas Bank Home Loan Interest Rates 2025

Purpose of Indian Overseas Bank Home Loan

Here are some of the purposes of Indian Overseas Bank Home Loan -

• Purchase or construction of a new or old flat/house (up to two houses).
• The age of the old flat/house should not exceed 25 years.
• Loan available for construction of additional rooms, first floor, or second floor on an already owned house.
• Plot purchase is allowed, subject to specific conditions:
• Rural & Semi-Urban Areas: Plot cost should not exceed 30% of the eligible loan amount.
• Metro & Urban Areas: Loan available up to 60% of the Fair Market Value (FMV) of the land, purchase price, or eligible loan amount, whichever is lower.

Features of Indian Overseas Bank Home Loan

These are some features or say advantages of the Indian Overseas Bank Home Loan, which is one of the best home loans in India. Read more to understand better -

• Long Repayment Tenure: Loan repayment period of up to 30 years.
• High Loan Amount: Covers 75% to 90% of the house/flat cost.
• Low Processing Charges: Competitive and affordable processing fees.
• Affordable Housing Loans: Suitable for various income groups.
• Flexible Repayment Options: Customizable EMI options for ease of payment.
• Attractive Interest Rates: Competitive rates based on credit score and eligibility.
• Minimal Documentation: Simple and hassle-free loan processing.
• Quick Approval & Disbursal: Faster loan processing for immediate funding.
• Expert Guidance: Assistance from professionals throughout the loan process.

Eligibility of Indian Overseas Bank Home Loan

Here are the eligibility criteria for Indian Overseas Bank Home Loan -

Eligible Groups of Individuals:

• Members of Co-operative Societies
• Individuals up to 55 years of age (Applicants up to 60 years may be considered if their legal heirs join as co-borrowers)
• Loan repayment must be completed before the borrower turns 70 years old

Eligibility Criteria:

• For Salaried Individuals: Must have a permanent job with a minimum of 2 to 3 years of continuous service.
• Self-employed Professionals: Must have at least 3 years of experience in the relevant field.

Indian Overseas Bank Quantum of Loan

The loan covers 75% to 90% of the cost of the house/flat, excluding registration and documentation charges. The sanctioned amount depends on the applicant's age and repayment capacity. Additionally, up to 30% of the total loan amount can be availed for plot purchase.

Calculate Indian Overseas Bank Home Loan Monthly EMIs

Here is an example of a different EMI with a loan tenure of up to 30 years with a home loan of Rs. 20,00,000 and interest rates ranging from 8.40% p.a. up to 9.00% p.a.

You need to put three elements -

• Loan Amount

• Tenure

• Interest Rate

Concluding

With minimal documentation, quick processing, and expert guidance, the bank ensures a smooth borrowing experience. Interest rates are linked to the applicant’s CIBIL score , making it beneficial for those with strong credit profiles. Indian Overseas Bank Home Loan interest rates are here with flexible repayment options, and high loan amounts to suit various financial needs. Whether for purchasing, constructing, or renovating a home, IOB provides affordable and accessible housing finance solutions.