Indian Overseas Bank has set its base rate at 8.25% with effect from 1st July 2010.

As per the new system of lending, all new loans and those which would be coming up for renewal from 1st July would be priced according to base rate. Only sectors like farm loans and export credit which have been exempted from the base rate effect would not come under the regime of base rate.

Old customers whose loans do not have the renewal facility would be given the option to choose between the old system of lending and base rate.

Otherwise, all loan borrowers need to switch to the new system of lending once their loan gets due for renewal.