Indian Overseas Bank (IOB) personal loan interest rates start at 10.50% for selected categories of salaried individuals. The maximum amount can go up to 25 times the gross monthly salary or ₹30 Lakhs; whichever is lower.
Based on the profile for salaried individuals, self-employed professionals, and pensioners, these loans can have a repayment tenure of 60-84 months. With its competitive interest rates and transparent lending practices, IOB aims to make unsecured credit accessible to a broad segment of borrowers.
Read more to learn about IOB personal loan interest rates, charges, repayment terms, comparisons with other lenders, and tips to reduce borrowing costs.
| The IOB personal loan interest rates start at 10.50% for salaried employees of public sectors, while they start at 10.85% for private sector employees. |
IOB Personal Loan Interest Rates
IOB provides different slabs of personal loan interest rates based on borrower income sources. This is also heavily dependent on the type of loan one opts for and their credit score. IOB personal loan interest rates are given to borrowers who have been classified into the following categories based on income source:
- Category A: Employees working in the public sector (central Govt., Quasi Govt., State PSUs, Central PSUs, PSBs, railways, defence & paramilitary, etc.). Maximum loan limit is ₹30 lakhs.
- Category B: Employees in the private sector (private firms, MNCs & companies) with a regular monthly salary and maintaining a salary account at IOB. Maximum loan limit is ₹30 lakhs.
- Category C: Employees in the private sector (private firms, MNCs & companies) with a regular monthly salary and don’t maintain a salary account with IOB. The maximum loan limit is ₹15 lakhs.
As IOB has different personal loan options, interest rates across them also vary. Here is a comprehensive list of all the loan types and their applicable interest rate ranges:
IOB Term Personal Loans Interest Rate
| Applicant category | Interest rates |
|---|---|
| Category A | 10.50% – 13.25% |
| Category B | 10.85% – 13.50% |
| Category C | 11.35% – 13.90% |
IOB Cash Credit Personal Loans Interest Rate
| Applicant category | Interest rates |
|---|---|
| Category A | 11.00% – 13.75% |
| Category B | 11.35% – 14.00% |
| Category C | 11.85% – 14.40% |
IOB Term Personal Loan Interest Rate
There is no specific customer categorisation in this case, as the pre-approval for a personal loan requires the applicant to complete the eligibility criteria put forth by IOB. (Pre-Approved Personal Loan & Personal Loan Scheme Top-Up Loan).
However, the interest rates are highly dependent on your credit score. Here are the general interest rates put forth by IOB for various credit score ranges.
| Credit score range | Interest rates |
|---|---|
| Equal to or more than 800 | 10.50% |
| 775 – 799 | 10.70% |
| 750 – 774 | 10.85% |
| 725 – 749 & NTC | 11.80% |
| 700 – 724 | 12.40% |
| 680 – 699 | 13.25% |
| 680 & Below | Reject |
IOB provides clean loans as personal loans, which means the loans are unsecured. The borrowers must have an SB account at IOB.
IOB Personal Loan Details
IOB offers some of the best features for its personal loans with flexible repayment options, competitive interest rates and minimal hassle.
Here is a comprehensive list of things to keep in mind:
| Parameter | Details |
|---|---|
| Minimum Loan Amount | No minimum amount |
| Maximum Loan Amount | ₹25 Lakh (subject to income profile) |
| Tenure | Up to 84 months |
| Disbursal Time | Typically within 3–5 working days |
| Collateral Requirement | Not required (unsecured/clean loan) |
| Interest Type | Floating (linked to Repo-Based Lending Rate) and fixed |
| Minimum Age | 25 years (18 for pensioners with co-obligation) |
| Maximum Age | 55 years |
IOB Personal Loan Fees & Charges
Before applying for an IOB personal loan, it is important to learn about the processing fees and miscellaneous charges that can affect the effective cost of the loan, apart from the interest rates.
| Loan Type | Processing Fees & Other Charges |
|---|---|
| IOB Clean Loan | 0.50% to 1% of the loan amount (Minimum ₹500) + GST |
| Pensioner Loan | ₹500 + GST |
| Prepayment Charges | Nil after 6 months; 1%–2% of the balance if prepaid earlier |
| Late EMI Payment | Penal interest at 2% per month on the overdue amount |
Note: The data in the table is subject to change as per the bank’s discretion. It is always a good idea to refer to the official website of IOB to ensure accurate results.
Comparison of IOB Personal Loan Interest Rates with Others
IOB offers some of the most competitive interest rates and related charges to customers for their personal loan options, compared to others in the market. To understand IOB’s positioning in the market, here’s a comparison with leading nationalised banks and NBFCs in India (as of April 2024):
| Lender | Interest Rate (p.a.) |
|---|---|
| Indian Overseas Bank (IOB) | 10.50% – 14.40% |
| State Bank of India (SBI) | 11.15% – 13.75% |
| Bank of Baroda | 10.90% – 18.30% |
| Union Bank of India | 10.85% – 14.95% |
| Punjab National Bank | 11.10% – 17.55% |
| Canara Bank | 10.20% – 14.00% |
| Bank of India | 10.85% – 13.85% |
| Central Bank of India | 10.95% – 13.50% |
| Indian Bank | 11.90% – 14.50% |
| UCO Bank | 11.50% – 14.20% |
| HDFC Bank (NBFC-backed) | 10.75% – 24.00% |
| Bajaj Finserv (NBFC) | 11.00% – 28.00% |
| Tata Capital (NBFC) | 10.99% – 25.00% |
| MoneyTap (NBFC) | 13.00% – 27.00% |
| IndiaLends (NBFC aggregator) | 13.50% – 29.00% |
Note: The mentioned values are based on official websites but are subject to change as the bank’s discretion.
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IOB Personal Loan EMI Calculator
Your Amortization Schedule (Yearly/Monthly)
It is best to use a personal loan EMI calculator for the calculation of interest rates and EMI repayment schemes to get a better idea of how your quantum of loan as well as repayments will look.
Using an online calculator is better than the conventional calculations using equations, as this negates the probability of error. You can use the IOB Personal Loan EMI calculator in order to retrieve accurate data based on the latest interest rates.
Following is a sample calculation based on the interest rate of 10.50% over various tenures and ranges of quantum of loans
| Loan Amount | 1 Year | 2 Years | 3 Years | 4 Years | 5 Year |
|---|---|---|---|---|---|
| ₹1 Lakh | ₹8,793 | ₹4,632 | ₹3,252 | ₹2,562 | ₹2,149 |
| ₹2 Lakh | ₹17,586 | ₹9,264 | ₹6,504 | ₹5,124 | ₹4,298 |
| ₹3 Lakh | ₹26,379 | ₹13,896 | ₹9,756 | ₹7,686 | ₹6,447 |
| ₹4 Lakh | ₹35,172 | ₹18,528 | ₹13,008 | ₹10,248 | ₹8,596 |
| ₹5 Lakh | ₹43,965 | ₹23,160 | ₹16,260 | ₹12,810 | ₹10,745 |
| ₹6 Lakh | ₹52,758 | ₹27,792 | ₹19,512 | ₹15,372 | ₹12,894 |
| ₹7 Lakh | ₹61,551 | ₹32,424 | ₹22,764 | ₹17,934 | ₹15,043 |
| ₹8 Lakh | ₹70,344 | ₹37,056 | ₹26,016 | ₹20,496 | ₹17,192 |
| ₹9 Lakh | ₹79,137 | ₹41,688 | ₹29,268 | ₹23,058 | ₹19,341 |
| ₹10 Lakh | ₹87,930 | ₹46,320 | ₹32,520 | ₹25,620 | ₹21,490 |
| ₹15 Lakh | ₹1,31,895 | ₹69,480 | ₹48,780 | ₹38,430 | ₹32,235 |
| ₹20 Lakh | ₹1,75,860 | ₹92,640 | ₹65,040 | ₹51,240 | ₹42,980 |
| ₹25 Lakh | ₹2,19,825 | ₹1,15,800 | ₹81,300 | ₹64,050 | ₹53,725 |
| ₹30 Lakh | ₹2,63,790 | ₹1,38,960 | ₹97,560 | ₹76,860 | ₹64,470 |
| ₹50 Lakh | ₹4,39,650 | ₹2,31,600 | ₹1,62,600 | ₹1,28,100 | ₹1,07,450 |
Disclaimer: These values are indicative and may vary based on exact terms and borrower risk category.
Factors That Influence Your IOB Personal Loan Interest Rate
Your IOB Personal loan interest rates can be influenced by various aspects. Knowing these factors and things that influence your loan amount can help you get personal loans at the minimum rate.
These factors include:
- Credit Score (mostly CIBIL): Higher scores (above 750) may get lower rates
- Employment Type: Type of income, salaried with stable employment etc., will get you better terms
- Monthly Income: Higher income can get you a better repayment capacity. This ultimately means a stable income flow.
- Loan Amount & Tenure: Higher tenure can get you higher interest rates, as it is a high risk for the bank.
- Banking Relationship: Existing IOB customers can receive better interest rate options.
The Impact of Credit Score on IOB Personal Loan Rates
A credit score is a three-digit numerical representation of your creditworthiness, calculated by various bureaus based on your past usage of credit. Scored in the range of 300 and 900, it serves a crucial role in the interest rate calculation for IOB personal loans.
A strong CIBIL score can directly lower your borrowing cost. Borrowers with credit scores above 750 often receive the best rates, while those below 650 may be rejected or charged higher interest.
Let’s take the example of the term loan, as the bank itself differentiates the interest rates based on credit scores.
| Credit score | Interest Rate | ROI |
|---|---|---|
| Equal to or more than 800 | RLLR + 1.65 | 10.50 |
| 775 – 799 | RLLR + 1.85 | 10.70 |
| 750 – 774 | RLLR + 2.00 | 10.85 |
| 725 – 749 & NTC | RLLR + 2.95 | 11.80 |
| 700 – 724 | RLLR + 3.55 | 12.40 |
| 680 – 699 | RLLR + 4.40 | 13.25 |
| 680 & Below | Reject |
Tip: Check your credit report for errors and pay off credit card dues before applying to IOB.
How Repo Rate Cut Affect Your IOB Personal Loan
IOB personal loans are linked to RBLR, which follows the RBI’s repo rate movements. A repo rate cut may reduce your EMI if you’re on a floating interest rate loan. However, for fixed interest rates, it will still continue to be the same for existing loans.
For example, consider a scenario where the RBI introduced a repo rate cut and how it affects the borrower from the below points. This can help you understand the impact of the repo rate on personal loan interest rates:
- RBI cuts repo rate → IOB’s RBLR decreases
- Floating-rate loan (RBLR-linked) → Your interest rate may reduce, lowering your EMI
- Fixed-rate personal loan → No immediate change; rate remains until restructured
- New loan applicants → Benefit immediately from revised (lower) RBLR
|
A repo rate is the interest rate at which the RBI lends money to commercial banks. IOB uses a benchmark called the Repo Based Lending Rate (RBLR) to determine personal loan interest rates. While IOB still calculates and publishes its MCLR, it is the RBLR that is actively used as the primary benchmark for determining the interest rates on their personal loans for new borrowers, as mandated by the RBI’s guidelines on external benchmarking. The RBLR = Repo Rate + Spread. |
Tips to Get the Best IOB Personal Loan Interest Rate
Here are some tips to maximise your chances of securing a lower rate by applying these strategies:
- Maintain a high credit score (750 or above) or improve your credit score.
- Avoid multiple loan applications that trigger hard enquiries.
- Apply during seasonal or festival offers.
- Borrow only what you need, as higher loans may attract higher rates.
- Choose shorter repayment tenures (lower risk for the bank).
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