IOB Personal Loan
The Indian Overseas Bank (IOB) is a public sector bank with more than 3300 branches in India, and 8 overseas branches. It is one of the foremost banks in India with low interest rates on borrowings, extensive coverage, speedy processes, and good customer support. Headquartered in Chennai, Tamil Nadu, IOB is one of the largest banks in India and has left behind a trail of happy customers throughout its decades of existence.
About IOB (Indian Overseas Bank) Personal Loan
IOB provides personal loans for customers who show a steady source of income. These include employees of PSUs, government, reputed private firms, and other companies. The customer has to be in active service at the time of requesting loans.
IOB personal loans are available under two segments:
- IOB Clean Loan: This is available for salaried professionals working in reputed or other institutions in India. The maximum loaned amount is ? 15 lakhs.
- IOB Sahayika Loan: This is available for self-employed people and can be used for social financial requirements such as marriages, medical treatments, or children’s education. The maximum amount that can be borrowed is ? 10 lakhs.
Why Choose IOB Personal Loan?
IOB is a reputed public sector bank with operations throughout the country. It has received a lot of awards through the years such as “Banking Excellence Award” from the Finance Ministry of Government of India (GOI), National award for MSME lending excellence, Bankers’ Excellence Award from Rotary International - United States of America, among many others.
3/4th of total stakes in IOB is owned by GOI, while remaining stakes are owned by the public. As such, there’s the added benefit of banking with a government-owned enterprise, which increases reliability and trust on the part of the borrower. Also, IOB Personal Loan interest rates are very competitive and the registration and other fees are low compared to other banks.
Features of IOB Personal Loan
- Clean Loan
- Sahayika Loan
This loan can be used for any purpose encompassing social or financial commitment. Loan amounts are decided by the salary received. Highest loan amount is ? 15 lakhs or 10 times salary, whichever is lower. This amount is only applicable if the salary is directly remitted or directed through the respective loan issuing branch.
For all other cases, a maximum of 5 times the monthly salary or ? 1 lakh, whichever is lower, is provided as loan.
LIC agents can avail loans up to 10 times their average calculated monthly commission, or ? 10 lakh, whichever is lower.
As security, 2 third party guarantors are needed, with each having salary equal to or more than the borrower’s gross takeaway.
This loan is available for commitments such as marriages, education, holidays and other commitments under law. The bank doesn’t verify declared purposes.
The maximum amount that can be borrowed is ? 10 lakhs. This amount though is dependent on the actual value of the offered security, as well as the borrower’s capacity to repay the loan. Business people, self-employed, or other professionals stand to borrow the income amount from last year, or ? 10 lakhs, whichever is lower.
As security, loan takers have to provide liquid securities or immovable property including UNITS, ULIP, KVP, IVP, NSC, LIC policies, and other similar items. The available margin is 10% on policies bought from LIC and other private life insurers, 25% for liquid securities as mentioned above, and 50% on immovable property.
The maximum repayment period of both the loan types discussed above is 60 months, while the minimum duration is 12 months.
What are the interest rates on IOB personal loan?
For Clean Loan, interest rate of 15.25% is applicable. For Sahayika Loan, the interest rate is 14%.
| Clean Loan Interest Rate | 15.25% (Floating) |
| Sahayika Loan Interest Rate | 14.00% (Floating) |
| Processing fee | Rs.204 for every lakh in loan amount |
| Loan Tenure | 21 years to 58 years |
| Age limit | 21 years to 58 years |
| Processing time | 7 days |
IOB Personal Loan Eligibility
- For Clean Loan
- For Sahayika Loan
Employees of PSUs, government, reputed private firms, and other companies presently in service. The final take home pay, once loan instalment deductions are carried out, shouldn’t be less than 50% of the gross pay. Life Insurance Corporation of India agents can also apply for this loan under conditions.
Employees must have an active savings bank account with IOB in the loan issuing branch; Salaries should also be directed through the savings bank account of the loan issuing branch; A letter from the employer undertaking deduction of instalment from salary every month till the loan tenure is active; and another letter from the employer undertaking dues recovery through employee’s terminal benefits in case of resignation, retirement, or death.
Self-employed individuals with at least 3 years of continued operations, or permanent employees of reputed companies can apply for this loan. The final take home shouldn’t be less than 40% of gross pay after instalment deductions have been made.
How do I calculate IOB personal loan EMI?
Calculating the Equated Monthly Instalment, or EMI, is a very simple task with BankBazaar’s dedicated Personal Loan EMI Calculator . tool. The calculator can be accessed by following the steps given below:
- Go to Financial Tools > Personal Loan EMI Calculator.
- Users have to next select the respective “Loan Amount” and “Tenure” on a scale by selecting their choices. The maximum loan amount that can be calculated is 30 lakhs, and the tenure has a cap of 5 years.
- The next box, marked as “Fee”, will ask users to enter the relevant interest rate % that they are going to pay. Default interest rates will already be filled, so users just have to change the figure provided in the Fee field.
- Once all the details have been filled, clicking the “Calculate” button will take users to a list of comprehensive information regarding the IOB Personal Loan such as monthly EMI, total due interest, as well as amortization details (monthly/yearly), for their reference.
All the information displayed at the end of the process allow users to plan their loan repayments with ease and according to hard data.
IOB personal loan FAQs
- Am I eligible for IOB Personal Loan?
- How do I repay IOB Personal loan?
- What is the maximum loan one can get from IOB?
- What is the tenure for IOB personal loan?
IOB Personal Loan offers personal loans only for salaried individuals earning more than the minimum stipulated amount per month depending on the city of their residence. The minimum monthly income required for IOB Personal Loan is more than 50% of the gross pay. If you fall into this group, you can definitely apply for a IOB personal loan.
You can repay the loan in Equated Monthly Installments (EMI's) using the ECS facility or through post-dated cheques.
IOB offers personal loans as high as Rs. 15 Lakhs for successful applicants depending on their financial record and repayment history.
IOB offers personal loan with a tenure period ranging upto 60 months making it suitable for all loan seekers.
Thanks for sharing your expertise and information with us. It helped me understand and gain an insight into the topic of cheap personal loans
ReplyDelete