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About Bank of India (BOI) Personal Loan
From renovating your home and vacationing abroad to medical exigencies and tuition fees, personal loans offered by Bank of India can help you fulfil your dreams. You can acquire a personal loan by simple documentation and hassle-free processing offered by Bank of India. You can choose a loan tenure from 1 to 3 years and avail of attractive personal loan interest rates. Bank of India offers Star Personal Loan Scheme to customers who need it to meet their various personal requirements. The maximum loan amount is Rs.10 lakhs, depending upon the income, with competitive interest rates and easy repayment plan. Bank of India offers personal loans to regular pensioners who draw their regular monthly pension through the Bank of India branch. A special loan scheme for the physically challenged is also offered by Bank of India wherein the borrowers can repay the loan in 12 to 60 months at a fixed interest rate on a reducing balance and 1% above base rate.
Bank of India (BOI) Personal Loan Interest Rates
Personal loan offered by Bank of India depends on several factors such as a customer’s credit history, monthly income and repayment capacity among others. Bank of India offers a floating personal loan interest rate of 12.95% to 14.95%. Under the star pensioner scheme, Bank of India offers interest rates of 13.70%, 14.2% and 12.95% for fully secured, unsecured and senior citizens (60 years and above for loans upto Rs.50,000) respectively. Under its Star personal loan scheme, Bank of India offers interest rates of
13.95%, 14.95% and 13.95% for fully secured, unsecured and finance secured with tie-ups respectively.
Customers can repay their personal loan in equated monthly installments (EMIs). At the time of booking of a personal loan, Bank of India will calculate the EMI based on the loan amount approved, interest rate and tenure. Bank of India offers both secured and unsecured loans. Customers can examine the benefits of the various schemes to zero in on one that is most suits their financial requirements.
Bank of India Personal Loan Interest Rates 2017
| Particulars |
Salaried |
Self-Employed |
| Interest rate |
Secured loans: 4.50% above 1 Year MCLR = 13% p.a.
Unsecured loans: 6.00% above 1 Year MCLR = 14.5% p.a.
|
Secured loans: 4.50% above 1 Year MCLR = 13% p.a.
Unsecured loans: 6.00% above 1 Year MCLR = 14.5% p.a.
|
| Loan Amount |
For Unsecured Loans:
Maximum Rs.5 lakh
Minimum:
Metro & Urban: Rs.10,000
Semi-Urban & Rural: No minimum amount
For Secured loans:
Maximum Rs.10 lakh
Minimum:
Metro & Urban: Rs.10,000.
Semi-Urban & Rural: No minimum amount.
|
For Unsecured Loans:
Maximum Rs.5 lakh
Minimum:
Metro & Urban: Rs.10,000
Semi-Urban & Rural: No minimum amount
For Secured loans:
Maximum Rs.10 lakh
Minimum:
Metro & Urban: Rs.10,000.
Semi-Urban & Rural: No minimum amount.
|
| Loan Tenure |
For unsecured loans: Maximum of 36 months, with a few exceptional cases where 60 months is permissible.
For secured loans: Maximum 60 months.
|
? For unsecured loans: Maximum of 36 months, with a few exceptional cases where 60 months is permissible.
For secured loans: Maximum 60 months.
|
| Lowest EMI |
For Metro and Urban areas:
Secured loan: Rs.228 per month.
Unsecured loan: Rs.345.
For Semi-Urban & Rural: NA.
|
For Metro and Urban areas:
Secured loan: Rs.228 per month.
Unsecured loan: Rs.345.
For Semi-Urban & Rural: NA.
|
| Processing Fee |
2% of the loan amount + GST
Minimum: Rs.1,000.
Maximum: Rs.10,000.
|
2% of the loan amount + GST
Minimum: Rs.1,000.
Maximum: Rs.10,000.
|
| Age |
No limit specified |
No limit specified |
| Prepayment/ForeClosure Charges |
None |
None |
How to calculate interest/ EMI on my Bank of India bank personal loan?
EMI comprises the interest on loan in addition to the principal to be repaid. The sum of principal and interest is divided by the tenure of the loan. Top rate aggregator websites such as bankbazaar.com provide a personal loan EMI Calculator which helps customers calculate the exact EMI which needs to be paid. All a customer has to do is enter the details of loan amount, tenure, interest rate applicable and processing fee, if any and click ‘calculate’. The customer will then find all the required information such as amortization figures and loan repayment figures for a specific loan amount. An amortization table provide a breakdown of loan repayment. The amortization table displays each payment to be made after principal is deducted resulting in new balance after each payment.
For instance, Amol Rao, a 29-year-old marketing executive opts for the Star personal loan scheme for a sum of Rs. 5 lakhs for 3 years at 12.95%. Rao, therefore, has to pay Rs.16,835 as the first EMI after acquiring the loan.
The amortization table is as follows:
| Year | Principal paid (Rs) | Interest paid (Rs) | Balance amount (Rs) |
| Year 1 | 14,5717 | 56,302 | 35,4283 |
| Year 2 | 16,5749 | 36,270 | 18,8534 |
| Year 3 | 18,8534 | 13,485 | 0 |
Factors affecting your Bank of India Personal Loan Interest Rates
There are various factors which affect interest rates offered on Bank of India personal loan as listed below.
- Repayment capacity: The repayment capacity of a borrower is of seminal importance. Banks usually provide personal loans up to 10 times the monthly salary of a customer. Banks check the CIBIL score of an applicant to determine his repayment capacity. Bank of India will offer attractive interest rates to loan applicants with a regular income and a robust credit history,
- Relationship with Bank of India: If a customer has a good rapport with his or her bank, there is no trust deficit. Consequently, the bank will be in a position to reduce their interest rates offered to privileged customers. Also, a long-standing customer of a bank can negotiate a lower interest rate, provided he or she fulfils all the required eligibility criteria for availing of a Bank of India personal loan.
- Loan tenure: Interest rate offered by Bank of India depends upon the loan tenure chosen by customers. If the customer opts for a short loan tenure, the bank is most likely to charge a higher interest rate as compared to loans offered on longer tenures.
Note: Bank of India can alter its Interest rates at its discretion.
How CIBIL score affects Bank of India Personal Loan interest rate?
CIBIL score reveals an individual’s repayment capacity and credit history. A robust CIBIL score will boost the chances of a loan applicant to acquire a personal loan at competitive interest rates. If loan applicants have a low CIBIL score, they are unlikely to get their loan approved. If Bank of India decides to approve a loan request by an individual who has a low credit score, the interest rate charged on the loan may be higher compared to those who have a good credit score.
Key things about Bank of India Personal Loan interest rates
Q. How does repo rate affect the personal loan interest rate?
When the RBI raises the repo rate, banks do not immediately raise their interest rates. In several cases, if a bank has had a lean growth rate, it will be reluctant to immediately pass on the increased rates to its customers. Banks analyze their liquidity and cost of funds before passing on the hike in repo rate to their customers by way of increased interest rates.
Q. Can I acquire a personal loan from Bank of India bank without a good credit score?
It is always prudent to have a robust credit score to avail of the credit facility from any bank. A good credit score paves the way for a loan getting approved in that all banks including Bank of India review the credit history and repayment capacity of an individual before approving a loan.
Q. Does Bank of India offer floating interest rates? What is the difference between floating and fixed interest rate?
Yes. Bank of India offers a floating rate of interest under its star personal and star pensioner loan scheme. Fixed interest rate entails repayment of loans in fixed equal installments since interest rate doesn't change with market fluctuations. Floating interest rate, on the other hand, varies according to market conditions. The floating interest rate changes depending on the base rate.
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