Indian Overseas Bank Personal Loan Interest Rates, Eligibility, Documents, FAQs

Personal loans are a convenient financial tool that can help individuals fulfill their dreams and meet various financial needs. Indian Overseas Bank (IOB) is a well-established bank in India that offers personal loans with attractive interest rates and flexible repayment options. In this blog post, we will answer frequently asked questions (FAQs) regarding IOB's Personal loan interest rates, enabling you to make informed decisions about your borrowing requirements.

Indian Overseas Bank Personal Loan Interest Rates

Indian Overseas Bank (IOB) Personal Loan Interest Rates

Interest Rate11.50% p.a.
Processing Fee0.40% of the loan amount
Loan Tenure1 to 5 years
Loan AmountUp to Rs.5 lakh
Salary / IncomeMinimum Rs.5,000 per month
Employment StatusSalaried
Credit ScoreIdeal score - above 700
Lowest EMI per LakhRs.2,219*
Pre-Payment/Foreclosure ChargesNil
Part Payment ChargesNil

Indian Overseas Bank (IOB) Personal Loan Interest FAQs

1. What is the current interest rate for IOB personal loans?

As interest rates are subject to change, checking with IOB for the most up-to-date information is essential. IOB's personal loan interest rates typically vary based on the loan amount, repayment tenure, and the applicant's creditworthiness.

2. How does IOB determine personal loan interest rates?

IOB considers several factors when determining personal loan interest rates. These factors may include the borrower's credit score, income level, employment stability, repayment capacity, and loan amount. A higher credit score and a stable income can result in more favorable interest rates.

3. Can I negotiate the personal loan interest rate with IOB?

While IOB sets interest rates based on various factors, it's worth discussing your requirements with the bank. You can inquire about ongoing promotional offers or negotiate the rate based on your creditworthiness. Remember, having a good credit score and a strong repayment capacity is always beneficial when seeking better interest rates.

4. Does IOB offer fixed or floating interest rates for personal loans?

IOB offers personal loans with both fixed and floating interest rate options. A fixed interest rate remains constant throughout the loan tenure, providing stability in repayment amounts. On the other hand, a floating interest rate is subject to periodic adjustments based on market conditions. Understanding the terms and conditions associated with each interest rate option is essential before deciding.

5. Are there any additional charges or fees associated with IOB personal loans?

Apart from the interest rate, IOB may levy processing fees, documentation charges, prepayment penalties (if applicable), and other expenses per their prevailing guidelines. It's advisable to review the loan terms and conditions carefully to understand the complete cost structure of the personal loan.

6. Can I transfer my personal loan to IOB from another bank?

IOB offers a balance transfer facility, allowing individuals to transfer their existing personal loan from another bank to IOB. This option can be beneficial if IOB provides lower interest rates or better loan terms, helping you save on interest costs. However, it's essential to consider any applicable charges and evaluate the overall cost-effectiveness before deciding.

7. How can I apply for an IOB personal loan?

You can visit the nearest IOB branch or check their official website to apply for an IOB personal loan. The bank provides the necessary application forms and guidance throughout the loan application process. It's advisable to keep all the required documents handy, including identity proof, income proof, address proof, and other relevant documents, as per IOB's requirements.


Indian Overseas Bank (IOB) offers personal loans with competitive interest rates to meet the financial needs of individuals. By understanding the key factors determining interest rates and considering other relevant information, you can make an informed decision when availing of a personal loan from IOB. Remember to assess your repayment capacity, review the terms and conditions, and compare rates from different lenders to find the most suitable personal loan option for your needs.

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