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Bank Of India
That dream wedding, most eagerly awaited foreign vacation, that long pending home renovation, an unexpected medical emergency or numerous other unexpected expenditure; any one can be faced with these contingencies. Banks and financial times are the saviours in tough times like these.
BOI Star Personal Loan scheme offers their customers with numerous personal loan products that can be used for these needs. Personal loan products of Bank of India are designed keeping in mind the urgency of the loan and the appropriate amount of loan that can satisfy the customer’s needs.
The interest rate on a personal loan plays an important role in choosing a persona loan. Bank of India offers competitive interest rates to their customers based on the credit profile and repaying ability. Following is the interest rate offered by the bank.
| Particulars | Rate of interest |
|---|---|
| Fully Secured | 1 Year MCLR + 4.50% = 13.20% |
| Unsecured | 1 Year MCLR + 5.50% = 14.20% |
| For Senior Citizens aged 60 years & above for loans up to Rs.50,000/- | 1 Year MCLR + 3.50% = 12.20% |
| Financing Secured under tie-up arrangements | 1 Year MCLR + 4.50% = 13.20% |
| Star Mitra Personal Loan (for physically challenged) | 1 Year MCLR + 1.00% + 0.30% BSS |
About Bank Of India Personal Loan Interest Rate
Prominent features of Bank of India Personal Loans
The interest rates applicable for customers is as mentioned below –
- Rate of Interest for existing customers having account relationship of minimum -6- months: One-year MCLR +SP+3.00% to One-year MCLR +SP+ 6.00%
- Other cases: For applicants having account relationship with other Bank at least for -6- months: One-year MCLR +SP+5.00% to One-year MCLR +SP+ 8.00%
Factors that impact your Bank of India Personal Loan interest rate
Personal loan interest rate varies for each customer. Following are the important factors that play an important role in determining your interest rate on a personal loan.
Credit ScoreA good credit score ensures a higher loan amount and lower interest rate. Banks consider a higher credit score as an indication of your creditworthiness. This highly impacts your loan amount and interest rate eligibility.
IncomeA higher income ensures timely repayment of the loan. Banks give better loan terms to individuals with higher income. Hence, make sure to include your income from all sources to ensure better loan amount and interest rate eligibility.
Employment type & EmployerWorking in a reputed organisation can certainly get you a good deal on your personal loan. Most banks have a list of approved employers and reputed organisations, that they refer to while processing your loan. Employment in these organisations assures the bankers of your job stability and income flow. Hence you are bound to get offers of higher loan amount and lower interest rate.
Relationship with the lenderExisting customers of the bank are always given preference, because their credit history is easier to obtain. If you are an existing customer of Bank of India, the bank can look at your account information, any existing loans or credit card payments and your general financial standing. Thus, an existing customer is given preferential interest rates on loans.
BOI Star Personal Loan purposes
BOI Star personal loans can be availed to satisfy a wide range of needs
Clean/Unsecured loans can be availed for
- Marriage expense of self/son or daughter/dependant near relative
- Medical expenses of self, spouse, children or dependant near relative
- For education of self, spouse, children or dependant near relative
- For repair or renovation of home
- Any other personal expenses as approved by the bank
Secured loans are offered for
- Repayment of existing housing loans from other banks or financial institutions
- Repairs or renovation of existing home
- For education of self, spouse, children or dependant near relative
- Purchase of consumer durables, professional equipment etc;
BOI Star Mitra Personal loans
- To aid physically challenged persons to purchase medical aids/sophisticated equipment that would help their social and physical rehabilitation
- All physically challenged individuals, both salaried and self-employed, are eligible for this scheme
- Middle-men or NGOs cannot apply
- Hypothecation of the equipment purchased, through the loan, serves as security/collateral
Eligibility criteria & EMI calculator
The loan amount and the interest rate vary for each applicant. They are based on numerous factors like income, employment type, age, existing relationship with the bank and the applicant’s latest credit score. The factors help the bank in figuring out the repayment capacity of the applicant which then effects the loan amount and the rate of interest you are eligible for. Other basic criteria are
- Indian resident individual of minimum 18 years of age
- The individual should be a salaried person, self-employed or professional with high net worth, pensioner or family pensioner, drawing regular pension withdrawal at the bank branch
- Staff members and retired employees of the bank
- Has a regular source of income with a healthy credit score
- For Star Mitra loan, doctor’s certificate detailing the extent of the handicap and the need for the equipment needs to be submitted
The Bank of India official website has an EMI calculator for your convenience. This EMI calculator lets you to calculate the monthly EMI for the loan amount and the corresponding interest rate. This helps you in the loan application process.
Quantum of Loan
The loan amount is calculated based on various factors. It could be either of the below
- 10 times of monthly net income in case of salaried employees
- For professionals/self-employed individuals, it could be 50% of gross annual income as per latest income tax statement
- However, it should be ensured that the net take home pay/Income (net of EMI of the proposed loan amount) is not less than 40% of gross income of the applicant
| Category | Min. amount | Max. amount |
|---|---|---|
| Star Personal Loan | ||
| Clean/Unsecured loans | At rural/semi-urban centres - No minimum amount stipulation | Rs. 5 lakh |
| Secured loans | At urban/metro centres - Rs. 10,000/- | Rs. 10 lakh |
| Star Mitra Personal Loan | No minimum amount stipulation | Rs. 1 lakh |
Security or Collateral
Bank of India accepts the following security or collateral to process your personal loan (except in unsecured/clean loan)
- Equitable or legal mortgage of commercial/residential property. Hypothecation charge to be given the bank
- Collateral security in the form of gold/gold ornaments, NSC/Indra Vikas Patra, Bonds, Assignments of LIC Policies, Relief Bonds, etc;
Repayment tenure
For Clean/Unsecured loans – Maximum of 36 months
For Secured loans – Maximum of 60 months
Processing charges
Bank of India charges a one-time processing fee of 2% of the loan amount on both secured and unsecured personal loans.
However, for senior citizen personal loans, no processing fee shall be levied.
Bank Of India Personal Loan Interest Rate FAQs
1. Does Bank of India require any security or collateral for personal loans?
Yes, Bank of India requires some kind of security or collateral for personal loans. You can provide any equitable or legal mortgage of commercial/residential property. You can also provide any gold/gold ornaments, NSC/Indra Vikas Patra, Bonds, Assignments of LIC Policies, Relief Bonds, etc; as collateral
2. How much personal loan can I get from Bank of India?
The eligible loan amount varies for each applicant. It is based on factors like net monthly income, age, employment type, existing relationship with bank and your latest credit score. Bank of India offers loans starting from Rs. 10,000/- up to Rs. 10 lakh. Contact your nearest bank branch to find out your eligibility.
3. Can a physically challenged person, who is a minor, obtain a loan under the Star Mitra loan scheme?
Yes, a physically challenged person who is still a minor can apply for the Star Mitra loan through their parents or legal guardians.
4. What are some of the purposes for which I can apply for a personal loan?
Bank of India personal loans can be availed for a number of needs.
- Marriage expense of self/son or daughter/dependant near relative
- Medical expenses of self, spouse, children or dependant near relative
- For education of self, spouse, children or dependant near relative
- For repair or renovation of home
- Any other personal expenses as approved by the bank
5. What are the loan disbursement methods available with Bank of India?
Bank of India Personal loans can be availed either as a term loan, a demand loan or an overdraft facility.
Bank Of India Personal Loan Interest Rate - Customer Reviews
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