IOB Home Loan Interest Rate — 16th September 2026
Public sector bank
Indian Overseas Bank publishes home loan interest rates from 7.10% to 8.20%. Below is its rate card exactly as it appears on Indian Overseas Bank’s own website, what that card says about who gets the best rate, and what the numbers come to as a monthly EMI.
Starting rate
7.10%
Top of published range
8.20%
Benchmark
RLLR 8.10%
Effective from
15 December 2025
Read from Indian Overseas Bank’s own website on 16 September 2026. Source and method
Indian Overseas Bank home loan interest rate card
By credit score (CIC grade) and employment
| Grade (score) | Salaried | Non-salaried |
|---|---|---|
| CIC-1 (800 and above) | 7.10% | 7.20% |
| CIC-2 (775 – 799) | 7.15% | 7.25% |
| CIC-3 (750 – 774) | 7.45% | 7.55% |
| CIC-4 (725 – 749) and new to credit | 7.75% | 7.85% |
| CIC-5 (700 – 724) | 7.85% | 7.95% |
| CIC-6 (680 – 699) | 8.10% | 8.20% |
Rates are RLLR minus or plus a published spread for each grade.
What Indian Overseas Bank’s interest rate card tells you
Indian Overseas Bank’s grid is compact and unusually flat at the top. A score of 800 or more costs 7.10% if you’re salaried, and 775–799 costs only 0.05% more. The gap opens below 775, where one step down adds 0.30%, and the bands after that add between 0.10% and 0.30% each. New-to-credit applicants are placed with the 725–749 band rather than penalised further. IOB publishes no rate for scores below 680. Non-salaried borrowers pay 0.10% more at every grade.
Ranked by published starting rate, Indian Overseas Bank comes 4th of 48 — 3rd within the 11 public sector banks we track. At 7.10%, Indian Overseas Bank’s starting rate sits 1.85 points over the RBI repo rate of 5.25%. Between the bottom and top of Indian Overseas Bank’s published range, the EMI on ₹40 lakh over 20 years moves by ₹2,704 a month — which is why the band you land in matters more than the headline.
EMI at Indian Overseas Bank’s home loan interest rate
EMI at 7.10%, Indian Overseas Bank’s published floor. Where a loan size has its own guide on BankCreds, the amount links to it.
| Loan amount | 10 years | 15 years | 20 years | 25 years | 20 yrs at 8.20% |
|---|---|---|---|---|---|
| ₹30 lakh | ₹34,987 | ₹27,133 | ₹23,439 | ₹21,395 | ₹25,468 |
| ₹50 lakh | ₹58,312 | ₹45,221 | ₹39,066 | ₹35,659 | ₹42,446 |
| ₹75 lakh | ₹87,468 | ₹67,832 | ₹58,598 | ₹53,488 | ₹63,670 |
| ₹1 crore | ₹1,16,625 | ₹90,443 | ₹78,131 | ₹71,317 | ₹84,893 |
Reducing-balance EMI, before processing fees and insurance. Run your own numbers →
Indian Overseas Bank against lenders priced nearby
The four lenders whose published starting rates sit closest to Indian Overseas Bank’s, with the EMI each floor produces on ₹40 lakh over 20 years.
| Lender | Published rate | EMI, ₹40 lakh / 20 yrs | vs Indian Overseas Bank |
|---|---|---|---|
| Indian Overseas Bank Public sector bank | 7.10% – 8.20% | ₹31,253 | — |
| Canara Bank Public sector bank | 7.15% – 10.00% | ₹31,373 | +₹120/mo |
| Indian Bank Public sector bank | 7.15% – 9.15% | ₹31,373 | +₹120/mo |
| UCO Bank Public sector bank | 7.15% – 9.25% | ₹31,373 | +₹120/mo |
| Union Bank of India Public sector bank | 7.15% – 9.35% | ₹31,373 | +₹120/mo |
How to land near the bottom of Indian Overseas Bank’s range
- Moving from the 750–774 band to 775 or above is worth 0.30% at IOB — the largest single step near the top of its grid.
- Pull your credit report at least a month before you apply. Errors — a closed loan still showing as open, a card you never took — are common, and correcting one can move you up a band on a grid like this.
- Read the sanction letter for the benchmark, the spread and how often the rate resets. Those three lines decide your EMI for the life of the loan far more than the day-one rate does.
What a Indian Overseas Bank home loan costs beyond interest
| Processing fee | 0.50% of the loan amount, maximum ₹20,000 up to ₹75 lakh and ₹25,000 above, excluding GST. IOB Harit Subhagruha (for green homes) charges 0.25%, maximum ₹15,000. On a ₹40 lakh loan, that comes to ₹20,000, before GST. |
|---|---|
| Prepayment and foreclosure | None on floating-rate home loans, under IOB’s schedule effective 1 April 2026. |
| Documentation (₹25 lakh to ₹1 crore) | ₹5,000 |
| Switching floating to fixed | 0.10% of the outstanding, maximum ₹5,000 |
Source: Indian Overseas Bank’s own schedule of charges, read on 16 September 2026: https://www.iob.bank.in/documents/d/guest/revision_of_service_charges_01042026
Who can get a Indian Overseas Bank home loan
| Who can apply | Individuals with income from salary, a profession, farming or business. Salaried applicants need a confirmed job with two to three years of service; professionals three years in practice. |
|---|---|
| Age | Loan to end by 70 |
| Longest term | 30 years |
Source: Indian Overseas Bank’s home loan page, read on 16 September 2026. Meeting these criteria doesn’t guarantee approval. https://www.iob.bank.in/en/housing-loan-subhagruha
Indian Overseas Bank home loan interest rate — common questions
What home loan interest rate does Indian Overseas Bank charge?
What is Indian Overseas Bank’s home loan processing fee?
What is the maximum tenure of a Indian Overseas Bank home loan?
Does Indian Overseas Bank charge more for a lower CIBIL score?
What is the EMI on a ₹40 lakh home loan from Indian Overseas Bank?
Is Indian Overseas Bank’s home loan interest rate fixed or floating?
How does Indian Overseas Bank compare with Canara Bank?
Where these figures come from
Source: Indian Overseas Bank’s own interest rate page, read by BankCreds on 16 September 2026: https://www.iob.bank.in/en/lending-interest-rates1
Indian Overseas Bank states the rate took effect on 15 December 2025.
Our record of Indian Overseas Bank’s rates starts on 16 September 2026; later changes will appear here when we find them. Indian Overseas Bank’s fees and eligibility on this page were read from Indian Overseas Bank’s own documents, and each section links to where.
Rates are what Indian Overseas Bank publishes, not an offer: the rate you’re quoted is set by Indian Overseas Bank after it assesses your application. How we collect and check rates →