Indian Overseas Bank Personal Loan Interest Rate

Indian Overseas Bank Personal Loans:

1. IOB Clean Loan – This loan is given to employees of reputed private enterprises, government firms, companies, public sector undertakings etc. Any salaried individual who has been working for a reputed company that has been in existence for 10 years can apply for IOB Clean loan.

2. IOB Royal Loan – This loan is given to individuals of high net worth or self-employed professionals like doctors, CAs, architects, engineers, professors, higher judiciary officials, salaried employees of reputed public interest companies and employees of high end IT companies.

3. IOB Consumption Loan or Sahayika Loan – This loan can be availed by individuals who may not have a high net-worth but are professionals, confirmed employees of a reputed organization, businessmen or self-employed persons who are experienced in their field of activity for the past three years.

Indian Overseas Bank Personal Loan Interest Rate

The rate of interest on IOB personal loan is linked to MCLR. The rate of interest on IOB personal loan is 12.55% (1% concession is given if 100% collateral is provided). Women borrowers can get a rebate of 0.50% on IOB personal loan.

The rate of interest on IOB Royal Loan is 12.95% per annum which is repayable in 4 years. For repayment in more than 4 years, the interest rate is is 13.70 per annum.

Factors that impact Indian Overseas Bank Personal Loan Interest Rate

To get a personal loan from Indian Overseas Bank, the credit score of the applicant should be 650. The credit score is the most important factor in determining the interest rate and EMI under an Indian Overseas Bank personal loan. The applicant should have a good repayment history

Any individual earning a salary of INR 5000 or more per month can apply for an Indian Overseas Bank personal loan.

Working with a reputed employer ensures consistent employment and consequently consistent income. This enhances the creditworthiness of an individual.Therefore, working for a reputed employer like government, college, university or MNCs makes it easy for an applicant to get a personal loan from Indian Overseas Bank.

To apply for Indian Overseas Bank personal loan, an individual should have a savings account with Indian Overseas Bank, and the salary should be routed through the account. An undertaking letter should be provided by the employer to deduct the loan amount and remit it to the bank. An employer must also issue a letter stating that the loan amount will be repaid from terminal benefits in case of death, retirement or resignation of the loan applicant.

Features and Benefits of Indian Overseas Bank Personal Loan

Indian Overseas Bank personal loan is of three types. The maximum amount you can get through Indian Overseas Bank Clean loan is Rs. 15,00,000 or ten times the salary whichever is lower. This amount is sanctioned on the condition that the employer of the applicant will deduct the installment from the salary and send it to IOB or the salary of the applicant is routed through the loan giving branch. If this condition is not met, the maximum amount of loan is limited to Rs. 10,00,000 or 5 times the salary whichever is lower. Agents of LIC can get a clean personal loan of maximum Rs. 10,00,000 or ten times their average monthly commission whichever is lower.

The maximum amount of loan that an applicant can get through IOB Sahayika loan is Rs. 10,00,000 based on the collateral and the capacity of the applicant to repay the loan. The loan may be availed by professionals like CAs, lawyers, doctors, and employees of reputed companies and high-end institutions. The maximum amount of Sahayika loan that an applicant can avail is equal to the annual income of the applicant from the previous year as shown in the income tax returns or Rs. 10,00,000 whichever is lower.

The maximum amount that applicants can avail through IOB Royal Loan is Rs. 15,00,000.

Documents Required for Indian Overseas Bank Personal Loan

The following documents should accompany the application:

• Proof of identity – copy of passport, driving license, Aadhaar card, or voter’s ID card
• Address proof – a copy of passport, ration-card, electricity bill, telephone bill or rental agreement
• Verification of income – copies of last six months bank passbook, or bank statements for the last three months
• Verification of creditworthiness – salary certificate along with recent Form 16

Personal Loan Charges

Indian Overseas Bank Personal Loan Interest Rate FAQs