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Indian Overseas Bank (IOB), a public sector bank headquartered in Chennai with over 3,300 domestic branches, offers home loans through schemes like IOB Shubha Gruha for property purchase, construction, renovation, extension, or balance transfer, financing up to 90% of the property value (max Rs.5 crore+ for strong profiles). As of November 2025, Indian Overseas Bank home loan interest rate starts at 8.00% p.a. for eligible applicants under PMAY-linked schemes (CIBIL 750+), up to 10.50% p.a. for higher-risk profiles, with tenures up to 30 years. It includes PMAY-CLSS subsidies up to 6.50% for EWS/LIG/MIG (income <Rs.18 lakh/year), a processing fee of 0.50% (max Rs.20,000 + GST), and approvals in 7-15 days for complete documentation across its extensive network.
|
Feature |
Details |
|
Interest Rate |
Starts at 8.00% p.a. (up to 10.50% p.a. based on CIBIL and profile) |
|
Processing Fee |
0.50% of loan amount + GST (max Rs.20,000) |
|
Loan Amount |
Up to 90% of property value (max Rs.5 crore+ for strong profiles) |
|
Repayment Tenure |
Up to 30 years |
|
Applicant Age |
18-70 years (up to retirement for salaried) |
|
Approval & Disbursal Time |
7–15 working days (faster for complete docs) |
|
Prepayment Charges |
Nil for floating rate loans (individuals) |
|
Eligibility (Salaried) |
Rs.20,000+ monthly; 1 year job; CIBIL 700+ |
|
Eligibility (Self-Employed) |
2 years business; Rs.3 lakh+ annual ITR; CIBIL 700+ |
Indian Overseas Bank home loan interest rate is floating, linked to the Repo Linked Lending Rate (RLLR) at 8.10% as of November 2025, with spreads adjusted for CIBIL, income, and PMAY status—starting at 8.00% p.a. for PMAY beneficiaries or salaried with CIBIL 750+ on loans up to Rs.30 lakh, up to 10.50% p.a. for self-employed or higher-risk profiles. PMAY-CLSS subsidy (6.50% on Rs.6 lakh for EWS/LIG) reduces effective rate to ~1.50%; women and defense personnel get 0.05% concession. Daily reducing balance applies.
|
Borrower Category |
Interest Rate |
Max Rate |
Key Influencing Factors |
|
Salaried (CIBIL ≥750) |
8.00% |
9.00% |
Stable job, ≤Rs.30 lakh loan, PMAY eligibility |
|
Self-Employed Professionals |
8.50% |
10.50% |
ITR consistency, 2+ years business |
|
Balance Transfer/Top-Up |
8.25% |
9.25% |
Existing repayment history, add-on ≤20% |
|
PMAY EWS/LIG/MIG |
8.00% (effective ~1.50%) |
8.50% |
Income <Rs.18 lakh, property ≤Rs.45 lakh |
|
Bank |
Starting Rate (p.a.) |
Processing Fee |
Max Tenure |
|
Indian Overseas Bank |
8.00% |
0.50% (max Rs.20,000) |
30 years |
|
State Bank of India (SBI) |
7.50% |
Up to 0.35% |
30 years |
|
HDFC Bank |
8.15% |
0.5%–1% |
30 years |
|
ICICI Bank |
8.75% |
0.5%–1% |
30 years |
For a Rs.50 lakh loan over 20 years at 8.00%, EMI is Rs.41,000—Rs.1,000 less than ICICI's 8.75%, equating to Rs.2.4 lakh interest savings; PMAY adds Rs.2.67 lakh subsidy for LIG.
Indian Overseas Bank home loan calculator at iob.in/emi-calculator: Input amount, rate (8.00%-10.50%), tenure for EMI, amortization, and PMAY subsidies.
Loan Amount: Rs.50 lakh
Interest Rate: 8.00% p.a.
Tenure: 20 years
|
Monthly EMI |
Total Interest Payable |
Total Amount Payable |
|
Rs.41,000 |
Rs.48.4 lakh |
Rs.98.4 lakh |
Reduce to 15 years: EMI Rs.44,800, saves Rs.13 lakh interest; PMAY adds Rs.2.67 lakh subsidy for MIG.
|
Charge Type |
Amount |
|
Processing Fee |
0.50% + GST (max Rs.20,000) |
|
Legal & Valuation Fee |
Rs.3,000–Rs.5,000 (actuals) |
|
CERSAI Registration |
Rs.500 |
|
Stamp Duty (MODT) |
0.1%–0.3% (state-specific) |
|
Prepayment (Floating Rate) |
Nil |
GST at 18%. Total <1%; PMAY waives 50% processing; no commitment fees.
● Age: 18–70 years (up to retirement)
● Rs.20,000+ monthly net income
● 1 year in current job
● CIBIL: 700+ (750+ for lowest rates)
● Age: 21–70 years
● 2 years business
● Rs.3 lakh+ annual ITR
● CIBIL: 700+; audited P&L required
90% LTV for PMAY; co-applicants (spouse/family) boost limits.
|
Service |
Contact Details |
|
Helpline (9AM-6PM) |
044-28521190 / 044-28521191 |
|
Email for Queries |
customer.service@iob.in |
|
Grievance Redressal |
nodal.officer@iob.in |
|
Branch Hours |
10 AM–4 PM (Mon-Fri) |
Visit iob.in/track-application with application no./mobile OTP—view stages: Submitted, Verified, Sanctioned, Disbursed. Email customer.service@iob.in for updates (48-hour response); visit branch with ID.
Salaried applicants need a minimum Rs.20,000 monthly net income, while self-employed require Rs.3 lakh+ annual ITR with 2 years business stability. The bank assesses based on 50% debt-to-income ratio for EMI affordability up to Rs.5 crore+; PMAY-eligible EWS/LIG (<Rs.18 lakh/year) get priority, with co-applicants (spouse/family) increasing limits by 20-30%.
Yes, NRIs qualify with 2+ years overseas employment, valid visa, and NRE proofs, at rates starting 8.25% p.a. with 80% LTV via power of attorney. Submit attested salary slips and overseas address; contact customer care for NRI desks, with disbursal in 10-15 days.
Yes, PMAY-CLSS offers 6.50% interest subsidy up to Rs.2.67 lakh on loans ≤Rs.12 lakh for EWS/LIG/MIG (income <Rs.18 lakh/year, property ≤Rs.45 lakh). Eligibility requires Aadhaar-seeding; the bank handles processing, reducing effective rate to ~1.50% and saving Rs.1-2 lakh annually on EMIs.
Balance transfer at 8.25%-9.25% (0.25%-1% lower than originators) requires 12-month statements and NOC, with 0.50% processing fee (max Rs.20,000). It includes top-up up to 20% original for renovations; processing takes 7-10 days, saving Rs.2,500+ monthly on Rs.50 lakh loans.
With housing affordability challenges amid 9% price rise in 2025 (NHB data), Indian Overseas Bank home loan interest rate calculator processing fee requirements application process customer care status delivers 8.00% rates, PMAY subsidies, and 7-15 day approvals—financing diverse needs across 3,300+ branches. Ideal for Rs.30 lakh-Rs.5 crore+ aspirations. Apply at iob.in or email customer.service@iob.in.
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