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.

A 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.

A 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.

Working 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.

Existing 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

Bank Of India Personal Loan Interest Rate FAQs