Everything to Know About Indian Overseas Bank Credit Card Interest Rate

Do you know that the credit usage in India has more than doubled in the last 5 years, according to the Reserve Bank of India? With this rising dependency, it is also necessary to be aware of the interest rate levied on the credit card.

Not only this, knowing how it gets calculated, how to avoid and what factors impact - in short, having an overview helps you manage your finances efficiently. So, keep on reading and exploring everything related to the Indian Overseas Bank credit card interest rate in this blog.

Indian Overseas Bank Credit Card Interest Rate: List of 7 Cards

All credit cards are applicable with a 2.5% interest rate per month. (30% per annum)

1. IOB RuPay Classic Credit Card

If you are looking for a card that offers various reward redemption opportunities, then you must opt for the IOB Rupay Classic Credit Card. For every ₹150 you spend, you get 1 reward point that can be redeemed in your favourite categories, such as various offers at merchant outlets, gift cards, buying entertainment or other perks.

• Annual Fee: ₹0
• Card Limit: ₹10,000 (minimum for everyone), ₹50,000 (maximum for public) and ₹59,000 (maximum for bank employees)

2. IOB RuPay Platinum Credit Card

This card can be an excellent choice for applicants who prefer to obtain airport Lounge facilities, fuel surcharge waiver at any fuel station and other more attractive perks like personal accident insurance. With the IOB Rupay Platinum Credit Card, the cardholder can get personal accident insurance coverage worth ₹2 lakh. 

• Annual Fee: ₹250+GST
• Card Limit: ₹60,000 (minimum for everyone), less than ₹2,00,000 (maximum for public) and less than ₹1,50,000 (maximum limit for bank employees)

3. IOB RuPay Select Credit Card

For people with a preference for obtaining a significant amount of accident insurance coverage and more lounge access facilities, this card is the best choice. It offers ₹10 lakh coverage and 2 domestic (per quarter) and 2 international (per calendar year) lounge access to the cardholders. 

• Annual Fee: ₹500+GST
• Card Limit: ₹1,50,000 (minimum card limit for bank employees), ₹2,00,000 (minimum for public) and ₹5,00,000 (maximum for public and bank employees)

4. IOB Visa Platinum Credit Card (Mid Premium Variant)

The speciality of this credit card is that it offers exclusive discounts on online education platforms such as Coursera, Udemy, etc. Along with that, one can enjoy the other in-built VISA services such as exclusive deals on luxury airport transfer, car rental services, EMI facility, and more.

• Annual Fee: ₹250+GST; (If you spend more than ₹60,000, then the annual fee will be waived off.)
• Card Limit: ₹51,000 (minimum for everyone) and ₹2,70,000 (maximum for everyone)

5. IOB Visa Signature Credit Card (Super Premium Variant)

If you are a movie buff, this credit card offered by Indian Overseas Bank should be in your wallet. It offers a 50% discount up to ₹300 on booking 2 movie tickets from BookMyShow. Apart from that, you can avail all the in-built VISA services, attractive reward points and more. 

• Annual Fee:  ₹750+GST; (If you can spend more than ₹1,00,000, the AMC will be waived off)
• Card Limit: ₹2,70,001 (minimum for everyone) and ₹5,00,000 (maximum for everyone)

6. IOB VISA Classic Credit Card

If making daily transactions with a card is your preference, then this IOB Classic credit card should be at the top of your list. You can utilise 100% of the card limit for daily transactions. Also, you can withdraw cash up to 40% of your card limit, increasing the convenience level. And, get up to ₹4 lakh personal accident insurance coverage due to an air crash.

• Annual Fee: ₹0
• Card Limit: ₹10,000 (minimum for everyone) and ₹50,000 (maximum for everyone)

7. IOB VISA Gold Credit Card

The key features of the IOB Gold Credit Card are almost similar to those of the IOB VISA Classic Credit Card. The only significant difference is in the card limit, almost 5X compared to the Classic variant. 

• Annual Fee: ₹0
• Card Limit: ₹60,000 (minimum for everyone) and ₹5,00,000 (maximum for everyone)

Factors Affecting the Indian Overseas Bank Credit Card Interest Rate

Indian Overseas Bank has a standard interest rate on most cards (2.5% per month). However, the actual rate that gets levied on a cardholder can differ significantly, based on several factors. Let's take a look at them so you can efficiently manage your finances in 2025: 

• CIBIL Score: 

If you have a higher credit score between 701 and 749, it demonstrates that you are responsible with your credit accounts. This track record will make you eligible for obtaining an IOB credit card with a lower interest rate at IOB Bank.

• Credit Utilisation Ratio: 

Using a large percentage of your credit limit not only shows your reliability on credit, but also demonstrates your income instability. So, try not to use more than 30% of your credit limit, which leads to qualifying for credits with lower interest rates.

• Repayment History: 

Making payments on or before the due date is a habit that makes you a low-risk borrower in the lender's eyes. Strong credit history unlocks various financial opportunities, including fast loan approvals, favourable terms, lower interest rates, etc. 

By knowing the underlying factors that can be a reason behind incurring higher interest charges, you can be more proactive in managing your finances. Either you apply some proven tactics or be more conscious about reducing the interest charged on your IOB credit card, and enjoy the most benefits.

Smart Tips to Avoid Interest Rates on Indian Overseas Bank Credit Cards

1. Consider the interest free period, which can range from 20 days to 50 days in the IOB Bank, and pay the card outstanding balance in between.
2. Try to pay the total credit card bill amount. If you make a partial or minimum payment, it will incur interest charges on the remaining amount from the date of the transaction till the date you finally pay. 
3. Though you get the ATM cash withdrawal facility, you should only use it when necessary. Otherwise, a high rate of charges will be applicable on the withdrawal amount.

💡Pay your credit card bills in an easy and secure way with the PICE App.

Conclusion

Being aware of the Indian Overseas Bank credit card interest rate before applying is a step towards being a responsible borrower. It will not only help you minimise the additional debt incurred on your outstanding credit amount but also help you become financially prudent.

Along with the grace period and credit limit, you should also consider the factors that impact the interest amount and apply the right strategies to avoid incurring it. This extra effort will help you save more in the long run.

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