🇮🇳 India

Indian Overseas Bank Last updated2026-05-28

Indian Overseas Bank EMI Calculator 2026 rates.

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Quick answer

Indian Overseas Bank home loan rate starts at 8.4% (typical 8.6%) as of 2026. A ₹50 lakh loan at 8.6% over 20 years = an EMI of approximately ₹43,708/month.

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EMI Calculator

Live

Loan Amount

₹

₹25.00 L

Interest Rate (p.a.)

Tenure (years)

Monthly EMI

₹21,696

/month

Total Interest

₹27.07 L

52% of total

Total Payable

₹52.07 L

over 20 years

Principal vs Interest Split

48% principal

52% interest

✨ Live · For home, personal, auto, education loans · Excludes processing fees

📊 Current rates

Indian Overseas Bank loan rates (May 2026)

🏠 Home Loan

8.4–10.5%

typical: 8.6% p.a.

💵 Personal Loan

10.85–16.25%

typical: 12.5% p.a.

🚗 Car Loan

8.85–11.45%

typical: 9.25% p.a.

💳 Processing Fee

0.50% of loan amount (max ₹10,000 for home loans). Concession during festival quarters.

🔁 Prepayment

Zero on floating-rate retail home loans. 1-2% on fixed-rate.

About Indian Overseas Bank

Why choose Indian Overseas Bank?

Indian Overseas Bank, headquartered in Chennai, is a mid-tier PSU with about 3,200 branches concentrated in Tamil Nadu (its home state), Karnataka, Andhra Pradesh, and overseas branches in Hong Kong, Bangkok, Singapore, and Sri Lanka. Total advances around ₹2.3 lakh crore. IOB exited the RBI PCA framework in September 2021 after recapitalization and has been consistently profitable since FY2022. Home loan book around ₹35,000 crore growing at 20%/year.

🎯 Unique angle

IOB has the largest overseas branch presence among Indian PSU banks (4 international branches in Hong Kong, Bangkok, Singapore, Colombo), giving it unique advantages for NRI home loan customers in Southeast Asia. IOB also has a deep Tamil Nadu rural and semi-urban network — the bank that "knows" tier-3 Tamil Nadu property markets better than HDFC/ICICI.

Product highlights

✓ IOB Home Loan: 8.4-9.4% repo-linked floating rate
✓ IOB Subha Gruha: special PMAY-CLSS focused affordable housing
✓ IOB NRI Home Loan with HK/Singapore/Bangkok branch handling
✓ IOB Doctor Home Loan: medical professional tier
✓ IOB Plot Loan: standalone plot purchase financing

❓ Indian Overseas Bank FAQ

Common questions.

Is IOB safe? It was under RBI PCA — what changed?

IOB was placed under RBI's Prompt Corrective Action framework in 2015 due to high NPAs. After government recapitalization (~₹16,000 crore total infusion over 2015-2021), provisioning, and bad-loan resolution, IOB exited PCA in September 2021. Since FY2022, the bank has been consistently profitable, capital adequacy is around 16-17%, and gross NPA has fallen from peak 25% to under 4%. RBI now classifies IOB as fully compliant with all regulatory norms. DICGC ₹5 lakh deposit insurance applies as for any Indian bank.

IOB NRI home loan via Singapore/HK branches — how does it work?

IOB has fully-functional branches in Singapore, Hong Kong, Bangkok, and Colombo where Indian-origin residents can directly apply for India home loans. Documents (KYC, income proof, employment proof) submitted at the foreign branch flow to the Chennai head office for processing. LTV typically 70% (vs 80% for resident applicants). For Singapore/HK-based Indian tech professionals buying property in Chennai, Bangalore, or Hyderabad, IOB offers door-to-door service rare among Indian PSU banks abroad.

IOB for tier-3 Tamil Nadu rural property purchase?

IOB is one of the strongest banks for tier-3 Tamil Nadu (Erode, Tirunelveli, Thanjavur, Cuddalore, Karur, Karaikudi) home loans. The branch density (~1,200 Tamil Nadu branches) and local valuer networks mean IOB can process rural property loans faster than HDFC/ICICI (who often don't have branches in these towns). For agricultural-linked households and traditional Tamil Nadu retail families, IOB is often the bank with the longest-standing relationship — sometimes 50+ years across multiple generations.

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