About Bank of India Personal Loan
Bank of India offers Star Personal Loans designed to meet any personal expense an individual could have, providing multipurpose loans to quell any monetary requirement. Bank of India offers these loans at competitive rates with flexible repayment options, providing immediate monetary relief in emergency situations. Personal loans offered by Bank of India are easy to obtain and hassle free, designed keeping the needs of the customer in mind.
Bank of India Personal Loan Eligibility
Bank of India offers two types of personal loans, with each loan having different eligibility criteria. Individuals who wish to apply for a Bank of India personal loan need to meet the basic eligibility criteria for each loan.
Star Mitra Personal Loan
Star Personal Loan
- Physically Challenged– This loan can be availed only by physically challenged individuals.
- Salaried/Self-Employed – The applicant needs to be salaried or self-employed with a regular source of income.
- Minors – This loan can be availed by physically challenged minors through either their parents or legal guardians.
- Doctor’s Certificate – The applicant needs to produce a Doctor’s Certificate indicating the extent of handicap.
For Salaried Individuals
- Salaried – The applicant should be a salaried employee or professional with a regular monthly income.
- Net Worth – Individuals who are not salaried should have a high net worth to be eligible for this loan.
- Regular Pension – The applicant should be a pensioner drawing monthly pension through the bank.
- Job History– The applicant should not have been dismissed from service or compulsorily retired, if he/she worked for Bank of India.
- Age Limit – The age of the applicant should be such that the entire loan amount is cleared before he/she attains the age of 75.
Factors affecting Eligibility of Bank of India Personal Loans
There are multiple factors which can affect the eligibility of an applicant when it comes to obtaining a personal loan, some of which are mentioned below.
- Income – Banks are financial institutions which run on their ability to utilise money effectively. The income of an applicant is crucial for banks before they sanction a loan, as the income helps them gauge if the individual can repay the loan amount. Higher the income of an individual, higher the chances of him/her obtaining a loan.
- Age – Middle aged and experienced individuals are more likely to get the loan approved compared to youngsters, as banks view youngsters as being opportunistic and unstable, willing to shift jobs at the drop of a hat. This makes them cautious while providing loans to young people.
- City of Residence – The city of residence can play a crucial role in the loan application, with people residing in metropolitan cities finding it easier to get their loan sanctioned compared to residents of small towns.
- Type of Employment – Permanent employees are likely to get the loan sanctioned faster than probationary or temporary employees, as they have a regular source of income from which the EMI can be deducted. Self-employed individuals need to have a good history of their business/venture in order for the bank to consider their application seriously.
How CIBIL score affects your Bank of India Personal Loan Eligibility
The CIBIL score of an individual plays a major role in determining whether he/she gets the loan approved or rejected, as Bank of India checks the CIBIL score to gauge the loan applicant. A good CIBIL score of around 800 or more would ensure that the loan application receives a favourable response from Bank of India. CIBIL scores ranging around 700 might be considered by the bank, but they might not readily sanction a personal loan in such cases. CIBIL scores below 700 are likely to be rejected by the bank, as a low CIBIL score raises concerns about the repayment capacity of the applicant.
A CIBIL score reflects the credit history of an individual, including past loans and their repayment capacity. A good CIBIL score is likely to instil confidence in Bank of India and increase the chances of an applicant securing a loan.
How to increase Bank of India Personal Loan Eligibility
Improving the eligibility for a Bank of India personal loan might sound difficult but following a few simple steps could help individuals land that elusive loan.
- Timely payment – Paying all credit card bills and EMIs on time will work wonders towards improving the eligibility for a personal loan.
- Choosing longer tenure – A longer tenure would mean lower monthly EMIs, which could meet the required income requirements expected by the bank.
- Prepayment – Prepaying any existing loan amount could make a huge difference in perception, improving the eligibility for a personal loan.
- Mixing up the loans – A healthy mix of secured and unsecured loans is likely to make a huge difference in the loan application.
- Limiting the applications– Applying for loans from multiple institutions is bound to make the applicant look desperate, lowering his/her credibility.
- Limiting the loan amount – Not asking for amounts higher than needed could increase the chance of getting the loan approved.
FAQs on Bank of India Personal Loan Eligibility
Q. What is the minimum and maximum personal loan amount an individual can apply for?
A. The minimum loan amount one could apply for is Rs. 10,000 in urban areas, with no minimum limit set in rural areas. The maximum amount depends on whether the loan is secured or unsecured, with the upper limit being Rs. 2 lakhs for unsecured loans and Rs. 10 lakhs for secured loans. The maximum loan amount for the physically challenged is Rs. 1 lakh.
Q. Should the applicant provide any security in order to obtain the loan?
A. Yes, applicants need to furnish security in the form of property, gold, LIC policies, Bonds or any other collateral to obtain Secured Loans.
Q. Is there a minimum age requirement to avail the Star Mitra Personal Loan?
A. There is no minimum age requirement to avail this loan, as even minors can obtain a loan through their parents.
Q. Should an individual applying for Star Mitra Personal Loan have insurance?
A. An applicant is advised to obtain an insurance at his/her own, though it is not compulsory.