Indian Overseas Bank is a major public-sector banking institution in the country. It has an extensive network of both domestic and international branches. IOB was founded in 1937 and has been a dynamic provider of various financial services such as personal banking, corporate banking, and international banking. IOB offers home loans starting at a competitive interest rate of 8.40% per annum. If you plan to buy a new home, renovate, or construct a property, IOB offers the best loan terms and competitive interest rates.
Here, we give you all the essential details regarding the IOB home loan interest rate, eligibility, documents required, and more.
The key highlights of Indian Overseas Bank housing loan interest rate are:
IOB Home Loan - Highlights |
|
IOB Home Loan Amount |
75% to 90% of the cost of the house/flat and 30% of the cost of the plot |
IOB Loan Interest Rate |
Starts from 8.40% per annum |
Loan Tenure |
Maximum of 30 years |
Loan Processing Charges |
0.50% of loan amount capped at Rs. 25,000 |
Prepayment Charges |
Nil |
Last modified on 19 July, 2024. Source: Indian Overseas Bank Website
IOB offers varied interest rates for different types of loan products. The latest Indian Overseas Bank home loan interest rates for each of its home loan schemes are listed below:
Given below are the home loan interest rates for IOB Subhagruha Home Loan, including Nri Home Loan
IOB Subhagruha Home Loan |
|||||
Salaried |
Non Salaried |
||||
Rating Scale |
Rate of Interest |
Effective |
Rating Scale |
Rate of Interest |
Effective |
IOB 1 |
RLLR-0.95% |
8.40% |
IOB 1 |
RLLR-0.85% |
8.50% |
IOB 2 |
RLLR-0.85% |
8.50% |
IOB 2 |
RLLR-0.75% |
8.60% |
IOB 3 |
RLLR -0.80% |
8.55% |
IOB 3 |
RLLR-0.70% |
8.65% |
IOB 4 |
RLLR+0.30% |
9.65% |
IOB 4 |
RLLR+0.40% |
9.75% |
IOB 5 |
RLLR+0.45% |
9.80% |
IOB 5 |
RLLR+0.55% |
9.90% |
IOB 6 |
RLLR+1.15% |
10.50% |
IOB 6 |
RLLR+1.25% |
10.60% |
Last modified on 19 July, 2024. Source: Indian Overseas Bank Website
The table below shows the latest interest rates for IOB Subagruha CC Loan:
IOB Subagruha CC Loan Interest Rates |
||
Loan Amount |
Rate of Interest |
Effective |
Upto Rs. 30 Lakh |
RLLR-0.55% |
9.80% |
Above Rs. 30 Lakh to Rs. 75 Lakh |
RLLR-0.45% |
9.90% |
Above Rs. 75 Lakh |
RLLR+0.70% |
10.05%
|
Last modified on 19 July, 2024. Source:Indian Overseas Bank Website
Given below are the IOB Home Advantage Loan Interest Rates:
IOB Home Advantage Loan Interest Rates |
||
Rating Scale |
Rate of Interest |
Effective |
IOB 1 |
RLLR+0.25% |
9.60% |
IOB 2 |
RLLR+0.40% |
9.75% |
IOB 3 |
RLLR+-0.50% |
9.85% |
IOB 4 |
RLLR+0.75% |
10.10% |
IOB 5 |
RLLR+0.85% |
10.20% |
IOB 6 |
RLLR-1.00% |
10.35% |
Last modified on 19 July, 2024. Source:Indian Overseas Bank Website
Given below are the latest interest rates for the IOB Home Improvement Loan:
IOB Home Improvement Loan Interest Rates |
||
Amount |
Rate of Interest |
Effective |
Below Rs 2 lakh |
RLLR + 0.40% |
9.75% |
Above Rs 2 Lakh Upto Rs 25 Lakh |
RLLR + 0.55% |
9.90% |
Last modified on 19 July, 2024. Source: Indian Overseas Bank Website
Given below are the home loan interest rates for IOB Home Decor loan:
IOB Home Decor Loan Interest Rates |
||
Loan Amount |
Rate of Interest |
Effective |
Up to Scheme Limit |
RLLR +2.95% |
12.30% |
Last modified on 19 July, 2024. Source:Indian Overseas Bank Website
Given below are the different types of Indian Overseas Bank home loans, along with their eligibility criteria:
The Indian Overseas Bank has an all-inclusive home loan scheme for the purchase or construction of new or old flats. It facilitates the ownership of a maximum of two houses. The age of the house being purchased must not exceed 25 years. It also allows the loan facility to construct additional rooms or floors in already-owned houses. There is no maximum cap on the amount of loan you can get. It is limited by the cost of the property. For new homes, you can get up to 90% of the value as the loan amount. You must check your eligibility first to determine whether you qualify for the loan quantum of your choice. The Indian bank housing loan rate is determined based on your income and credit score.
- New Houses: 18 months from the date of first disbursement of loan or completion of construction, whichever is earlier
- Old Houses: Maximum 3 months for the purchase of a flat
If you already have a home loan and are looking to extend the financing, the top-up loan is a good option. IOB top-up loans can be used for any purpose of your choice. The home equity loan is available for anyone with a good track record of payment in the last year. IOB offers top-up loans for borrowers who have completed one-third of their loan tenure. It is also possible to transfer a bank loan from one bank to IOB.
The owner and co-owner must also be applicants for the top-up loan. It is possible to get an additional loan by inviting a guarantor to be a loan applicant. Any family member is allowed to become a guarantor.
Loan Amount:
Takeover from Other Banks (With or Without Top-up):
Repayment:
Another type of home loan from IOB offers a 20% higher loan amount than a normal housing loan. As long as you have a monthly income of Rs. 30,000, you can get this loan. The repayment period allowed is a maximum of 30 years, including the holiday period.
If you are looking to renovate or refurnish your home, the home improvement loan is useful. This loan can be used for multiple purposes related to home renovation. The maximum loan amount sanctioned depends on the cost estimate of the actual work to be undertaken. You can avail yourself of anything from Rs. 25,000 to Rs. 25 lakh when you apply through this scheme.
For this loan, the renovated property must be mortgaged to the bank. If that is not possible, you can also pledge another property with a market value that is twice that of the loan amount.
Eligibility:
Purpose: To cover expenses for repairs, renovations, or upgrades of an existing house or flat, such as painting, building a compound wall, flooring, tiling, replacement of doors/windows, wiring, etc.
Loan Amount: Ranges from ₹25,000 to ₹25 lakhs, depending on the estimated cost of work and the applicant's repayment capacity.
Margin: 25% of the total loan amount.
Tenure: Up to 180 months.
NRIs, too, can avail of IOB home loans for the construction, purchase, renovation, or repair of residential houses. Even those holding passports from other countries can apply (except for Bangladesh and Pakistan). The immovable property must be mortgaged with the bank. You must ensure that the land or property is in your name or held jointly with your spouse or other close relative.
There are a few conditions for the NRI home loan. The loan proceeds will not be credited to the NRE/FCNR account. You can repay the loan amount as a foreign inward remittance. It is also possible to set up a debit of the borrower's NRE/NRP/FCNR account. Any close relative of the borrower can also repay the loan. However, cash payments will not be accepted.
Minimum Salary: ₹10,000
Quantum of Loan:
Rate of Interest: Linked to RLLR (latest rates available upon request).
Margin:
Repayment Period:
Holiday Period:
If you are not interested in renovating the home but want to furnish your home with new home decor, you can get IOB loans to buy new kitchen equipment, room coolers, air conditioners, carpets, cupboards, and others. The loan amount is determined based on your monthly income. There are no prepayment charges for this loan.
Loan Amount:
Margin: Minimum margin is 25% of the total cost
Repayment: Maximum of 6 years. The combined EMI for this loan and any housing loan should not exceed 60% of the gross pay.
Security:
- If financed by IOB, extend the mortgage for this loan or mortgage another property with a value at least equal to the loan amount.
- If financed by another bank or financial institution, provide a no-lien letter from that institution.
The crucial details are KYC forms, salary details, income slips, and property mortgage documents. You must be ready with the following documents:
Here is a comparative analysis of the home loan interest rates provided by the top banks in India:
Top Banks' Home Loan Interest Rates 2024 |
|
List of Banks/Housing Finances |
Interest Rates |
SBI |
8.50%-9.85% p.a. |
HDFC Bank Limited |
8.70% p.a. onwards |
LIC Housing Finance |
8.50% - 10.35% p.a. |
ICICI Bank |
8.75% p.a. onwards |
Kotak Mahindra Bank |
8.70% p.a. onwards |
PNB Housing Finance |
8.50% - 14.50% p.a. |
Punjab National Bank |
8.45% - 10.25% p.a. |
Bank of Baroda |
8.40% - 10.65% p.a. |
IDFC First Bank |
8.85% p.a. onwards |
L&T Finance Limited |
8.65% p.a. onwards |
Tata Capital Housing Finance |
8.75% p.a. onwards |
Yes Bank |
9.40% to 11.50% |
Axis Bank |
8.75%-13.30% p.a. |
Godrej Housing Finance |
8.55% p.a. onwards |
IOB |
8.40% p.a onwards |
Last modified on 19 July, 2024.
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