Will my IOB EMI change after the RBI policy on October 7, 2026?

IOB home loans are linked to an external benchmark, usually the RBI repo rate. If the RBI changes the repo rate, IOB revises its benchmark and your rate resets within the reset window. Most lenders extend your tenure by default rather than change your EMI.

I already have a IOB home loan at 8.50%. Should I shift it?

If the gap between your rate and a new offer is at least 0.40% to 0.50%, you have 5+ years left and your balance is above ₹20 lakh, a transfer usually saves money even after fees. Ask IOB for a spread reset first. If they refuse, compare offers.

Does IOB charge a prepayment or foreclosure fee?

RBI rules do not allow lenders to charge prepayment or foreclosure penalties on floating-rate home loans taken by individuals. Fixed-rate loans and business borrowers can be treated differently, so check your sanction letter.

Does GoVitt charge me anything?

No. GoVitt is free for borrowers. We are paid by partner lenders, and we tell you honestly when a switch is not worth it.

Next RBI policy decision: October 7, 2026. We update all rates the same day.

IOB Home Loan Rates · October 2026

Indian Overseas Bank Home Loan Interest Rate starts at 7.10%*

IOB charges between 7.10% and 8.95% depending on your CIBIL score and profile. If you are an existing IOB borrower paying 8.00% or more, you may be overpaying. Check in 60 seconds, with no credit score impact.

Rates last updated on October 1, 2026

Source:IOB official website ↗

Starting rate

7.10%

No change

Best CIBIL, salaried

Up to

8.95%

Lower CIBIL / higher risk

Processing fee

0.50%

0.50% (Max ₹25,000) + GST

Max tenure

30 yrs

Max loan: No upper limit

We promise: No spam calls · Data encryption · Unbiased advisory

Indian Overseas Bank home loan at a glance

Headline terms for a new IOB home loan. Your final rate is set after IOB assesses your CIBIL score, income, loan amount and property.

Interest rate	7.10% – 8.95% p.a.
Lender type	Public Sector
Rate benchmark	Repo-linked rate (EBLR / RLLR)
Processing fee	0.50% (Max ₹25,000) + GST
Maximum loan amount	No upper limit
Maximum tenure	30 years
Best suited for	Low starting benchmark rates for high CIBIL scores

* Indicative rates based on public lender disclosures. Final rates depend on borrower risk score, property type and LTV ratio.

How your CIBIL score moves your IOB rate

750 and above

Qualifies for rates at or near IOB's starting rate of 7.10%.

700 – 749

Usually 0.25% to 0.50% above the best rate.

Below 700

Higher spread, and you may need a co-borrower to get approved.

Already paying IOB 8.00% or more?

Enter three numbers from your loan statement. We show savings after switching costs, not the inflated gross figure, and tell you honestly if moving is not worth it.

Outstanding amount (₹)

Your current IOB rate (%)

Years remaining

Best rate you qualify for (%)

Estimated switching costs (₹): processing, legal, valuation, MODT

💡 Pro Tip: Tip: before switching, ask IOB for a spread reset. If they refuse or charge too much, a transfer is your leverage.

Current EMI₹45,273

New EMI₹41,068

Monthly saving₹4,205

Total interest saved₹9,08,313

Minus switching costs– ₹37,500

Worth exploring

₹8,70,813

Net saving over your remaining tenure, after estimated switching costs.

See my real payoff date →

IOB home loan EMI for ₹30 lakh to ₹75 lakh

Monthly EMI on a 20-year loan at IOB's starting rate, and at 1% higher. That 1% is roughly what a weaker CIBIL score or an old spread costs you.

Loan amount	EMI @ 7.10%	EMI @ 8.10%	Extra you pay / month
₹30 lakh	₹23,439	₹25,280	+₹1,841
₹40 lakh	₹31,253	₹33,707	+₹2,454
₹50 lakh	₹39,066	₹42,134	+₹3,068
₹75 lakh	₹58,598	₹63,201	+₹4,603

Tenure 20 years. EMIs rounded to the nearest rupee.Try other amounts in the EMI calculator →

How IOB decides your rate

Indian Overseas Bank is a bank, so every new floating-rate home loan is linked to an external benchmark, which for most banks is the RBI repo rate.

Your IOB rate = repo-linked benchmark (RBI repo + bank spread) + your risk premium

Repo moves, your rate follows

The RBI repo rate is at 5.25% and the next policy decision is on October 7, 2026. If it changes, IOB revises its repo-linked rate and your loan resets within the reset window.

Your spread does not move

The spread set on day one usually stays for the full tenure, even if your CIBIL score improves. That is why older IOB borrowers often pay more than new ones.

Lenders stretch tenure, not EMI

When rates go up, most lenders keep your EMI the same and add months to the loan. Your statement may not show the real payoff date.

When a switch makes sense

Rate gap of 0.40% or more, 5+ years left, and a balance above ₹20 lakh. Below that, switching costs can eat the savings.

IOB vs lenders with similar rates

The lowest starting rate is not always the lowest rate for your profile. Compare before you sign or switch.

Lender	Interest rate (p.a.)	Processing fee
State Bank of India	7.10% – 8.70%	0.35% (Min ₹2,000 to Max ₹10,000) + GST
Bank of India	7.10% – 8.85%	Nil to 0.25% (Max ₹20,000) + GST
Indian Overseas BankFeatured	7.10% – 8.95%	0.50% (Max ₹25,000) + GST
Central Bank of India	7.10% – 10.00%	Nil Processing Fee
Bank of Maharashtra	7.10% – 10.80%	Nil Processing Fee
Union Bank of India	7.15% – 12.65%	0.50% (Max ₹15,000) + GST

Compare all 50+ lenders →

IOB home loan FAQs

Indian Overseas Bank home loan rates currently range from 7.10% – 8.95% p.a. The rate you get depends mainly on your CIBIL score, income profile, loan amount and the property.