Whether your IOB home loan EMI remains constant throughout the loan tenure or changes, depends on whether you have taken a fixed-rate or floating-rate home loan. Indian Overseas Bank (IOB) is one of the key public sector banks in the country which offers different products for its vast customer base. Let’s take a closer look at how IOB home loans work. 

Will the IOB Home Loan remain constant or change in future?

The floating interest rate granted by IOB is linked to the 1-year MCLR rate. The interest rate for a home loan thus is dependent on the type of home loan requirement and the amount of loan availed. So, if you have availed of a floating home loan and any change in the repo rate which is linked to the IOB home rate benchmarked occurs, then your IOB home loan EMI is bound to change. However, for a fixed home loan option, the home loan EMI will remain constant throughout the tenure of the loan undertaken, unless there is a change in the original loan terms like change in tenure or prepayment of loan etc. At present, IOB offers only floating rate home loans only. 

As such, with any cut in the repo rate, your IOB home loan interest rate and EMI will decrease and increase with an increase in repo rate on the date of reset. This implies that IOB Home EMI keeps fluctuating during the tenure of the loan depending on the changes in the rate of interest due to the relevant change in repo rates.

Important Facts about IOB Home Loans

  • Low rate of interest
  • Loan granted based on borrower’s age and repaying capacity
  • Maximum loan tenure of up to 30 years
  • Nominal processing fees
  • Security free home loan available 
  • Easy documentation process
  • Offline (branch visit) and online (net banking, mobile etc.) facility available 
  • No charges for pre-closure of home loan
  • The processing fee is nominal 0.50% of the loan amount with the maximum limit of Rs. 25,000

IOB Floating Home Loan Interest Rate 

IOB Home Loan Products

Home Loan 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.

Key Point to Remember: 

  • IOB offers only floating rate home loans. So, your home loan EMI is likely to keep on fluctuating during the tenure of the loan.