IOB Home Loan Interest Rate 2026
Last updated:
Quick Answer
Indian Overseas Bank home loan interest rates start at 8.4% p.a. and go up to 9.65% p.a. (as of early 2026). Rates are linked to the repo rate and vary based on loan amount, tenure, and borrower profile.
IOB Home Loan Rate — Rates at a Glance
| Salaried (Lowest Rate) | 8.4% p.a.(Excellent credit score (750+)) |
| Salaried (Standard) | 9.03% p.a. |
| Self-employed | 8.65–9.65% p.a. |
| Women borrower discount | 0.05% concession(Applicable on applicable rate) |
| Processing fee | 0.25–0.50% of loan amount |
| Prepayment charges | Nil for floating rate loans |
Rates are indicative as of 2026-04-07. Verify with Indian Overseas Bank official website before investing.
Key Things to Know
- 1Starting rate: 8.4% p.a. (repo-rate linked, varies with RBI policy)
- 2Maximum loan-to-value (LTV): 75–90% depending on property value
- 3Repayment tenure up to 30 years
- 4Women co-borrowers get 0.05% rate concession
- 5Home loan interest deduction: up to ₹2 lakh/year under Section 24(b)
- 6Principal repayment: up to ₹1.5 lakh under Section 80C
Calculate Your Returns
Monthly EMI
₹8,678
Total Interest
₹10,82,776
Total Payment
₹20,82,776
Amortization Schedule (Yearly)
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹19,902 | ₹84,236 | ₹9,80,098 |
| 2 | ₹21,661 | ₹82,477 | ₹9,58,436 |
| 3 | ₹23,576 | ₹80,563 | ₹9,34,860 |
| 4 | ₹25,660 | ₹78,479 | ₹9,09,200 |
| 5 | ₹27,928 | ₹76,211 | ₹8,81,272 |
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Frequently Asked Questions
What is IOB home loan interest rate today?
Indian Overseas Bank home loan rates range from 8.4–9.65% p.a. as of early 2026. Rates are floating and linked to the RBI repo rate.
How much EMI for ₹50 lakh IOB home loan for 20 years?
At 8.4% p.a., a ₹50 lakh home loan for 20 years has an EMI of approximately ₹43,075. Use our EMI calculator for exact calculations.
Does IOB charge prepayment penalty on home loans?
No. RBI mandates that floating-rate home loans cannot carry prepayment penalties. IOB does not charge prepayment fees on floating rate home loans.
What is the maximum tenure for IOB home loan?
Indian Overseas Bank offers home loan tenures of up to 30 years for eligible borrowers. The maximum age at loan maturity is typically 70–75 years.