Indian Overseas Bank (IOB) is a leading public sector bank in India that offers various home loan schemes to its customers. EMI for the various IOB home loan provided has to be paid on a monthly basis at the ongoing floating interest rate for the specified loan tenure. 

The current IOB home loan interest rates are in the range of 7.05% to 7.30%, with special categories like women borrowers getting special discounted rates at 7.05%. To meet the growing demand for its home loan products, IOB has kept the processing charges for the home loan products at a nominal charge, so as to give the benefit to its customers. The processing fee is fixed at 0.5% of the loan amount with a maximum of Rs. 25,000. 

Features of IOB Home Loan 2021



Rate of Interest

7.05% p.a. onwards

Period of Loan

Up till 30 years

Loan-to-value Ratio

Property Value up to 90% available 

Processing Charges

Nominal charges up to 0.50% of the loan amount up to the maximum limit of Rs. 25000

Amount of Loan

Dependent on age and repayment capacity

Type of Home Loan Interest

Floating Interest Rate

Foreclosure Fees


IOB Home Loan Interest Rate 2021

IOB home loan interest rate is pegged to the Repo Linked Lending Rate (RLLR), which is currently at the rate of 7.25%. Therefore, the total amount of home loan interest applied by the bank would be the total of RLLR and spread basis of the desired loan amount required. The below table provides the IOB home loan interest rate for its different home loan schemes.

IOB Home Loan Scheme

Interest Rate

Housing Loan

7.05% - 7.30% p.a.

Subhagruha Top-up Loan

9.25% - 9.75% p.a.

Loan against property

9.75% - 10.25% p.a.

Home Improvement Loan

7.25%- 9.80% p.a.