Indian Overseas Bank Loan Repayment

The loan taken by the customers of Indian Overseas Bank has to be repaid within the tenure of the loan taken. Customers have the option to repay the loan taken with many flexible borrower-friendly features. The repayment schedule for the loan taken can be determined based on the repayment capacity of the borrower. The loan amount can be repaid on monthly or weekly basis or any other arrangement as per the agreement between the borrower and the Bank.

How does loan repayment work?

Repayment of the loan taken, as mentioned above, has to be repaid within the tenure of the loan. Repayment schedule of the loan is calculated on the basis of amount to be repaid each month during the tenure of the loan.

The amount to be repaid each month is known as the Equated Monthly Installments or EMIs. These EMIs are made up of two components: the principal amount to be repaid as well as the interest component. There are many lenders who provide the option to repay only the interest component initially or in lump sum as per the arrangement or the agreement between the lender and the borrower. The interest component of the EMI is greater in case of loans that have greater repayment tenure and will reduce over the repayment schedule of the loan and the principal component accounts for a larger proportion in the latter half of the repayment schedule.

Popular Modes of Repayment

The repayment of loans taken can be done in many ways as per the convenience of the borrower and as per the agreement between the lender and the borrower. The most popular modes of repayment of loans are mentioned below.

Standing Instructions

Customers can give standing instructions to the bank to debit the EMI amount from their savings or current bank account and credit the same to their loan account. This is a widely used and accepted mode of making EMI payments by the customers when the loan is taken from the same bank where the customer has his/her bank account.

Electronic Clearing System

ECS is another widely popular mode of making the EMI payments to the Indian Overseas Bank Loan. Customers have to fill out the form for such ECS mandate and submit the same at the branch of the Bank. This mode of making payment is used when a customer has his/her bank account with another bank and not the one that has issued the loan.

Post Dated Cheques

This is one of the oldest or the traditional ways of making EMI payment or repaying the loan taken. Customers can submit post dated cheques with any bank to repay the loan taken from Indian Overseas Bank. Post Dated Cheques (PDCs) are used to repay all types of loans but are most commonly used in repaying loans taken to purchase a vehicle.

How to use a repayment calculator?

All banks have a repayment calculator that can be accessed on the website of the bank. Indian Overseas Bank also has a repayment calculator which the customers can use to calculate an estimate of the loan to be repaid on the basis of Equated Monthly Installments or EMIs. This will give the customers an estimate of the expense of the loan taken. The parameters needed for using the repayment calculator are mentioned below.

• Loan amount
• Rate of Interest
• Tenure

Repayment Schedule of Personal Loans in Indian Overseas Bank

Personal Loans are the loans that are granted by Indian Overseas Bank to customers to meet their personal needs like medical expenses, wedding expenses, travel, home renovations or repairs, etc. Personal loans are some of the easiest loans that can be granted to the customers. In many cases, Personal Loans can be granted within minutes or hours of application if they meet the eligibility criteria and submit all the necessary documents and application form duly.

Personal Loans of Indian Overseas Bank can be granted up to maximum Rs. 5,00,000. The maximum repayment tenure for the loan is 60 months or 5 years. Customers also get the benefit of prepayment of the loan taken. Such prepayment can be done at zero additional cost or any prepayment charges.

Repayment Schedule of Home Loans in Indian Overseas Bank

Home loans of Indian Overseas Bank can be availed for purposes like purchasing a new house or flat or renovating an existing home. The Bank provides home loans from minimum of 75% to maximum of 90% of the value of the house. In case of home loan, the maximum amount of home loan is 30% of the purchase amount.

The tenure of the home loan of Indian Overseas Bank is for a maximum period of 30 years. Home Loan of the bank also does not have any prepayment charges as well.

Repayment Schedule of Vehicle Loans in Indian Overseas Bank

The vehicle loans of Indian Overseas Bank are available for four wheelers as well as two wheelers and can be availed by residents as well as NRIs. The maximum loan amount is 90% or 75% in case of new car or used car respectively or Rs. 60,000 in case of two wheeler loans.

The maximum repayment tenure for Vehicle loans is tabled below.

Repayment Schedule of Gold Loans in Indian Overseas Bank

Gold Loans of Indian Overseas Bank is of various types and for many purposes. Customers can pledge or use their gold as security to get loan funds for their desired needs. The details of the gold loans of the bank and the details of the same are tabled below.

Repayment Schedule of Education Loans in Indian Overseas Bank

Education Loan of IOB can be for the purpose of getting higher education, paying tuition fees, hostel fees and airfare, getting technical or vocational education for getting a new job, or undertaking special higher education training for jobs.

The repayment tenure for the education loans of IOB is a maximum period of 15 years and customers also get a moratorium of 1 year to repay the loan.

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