Bank of India offers personal loans to customers depending on their credit history and repayment capacity. Interest Rate Range is from 12.90% to 13.90% p.a.
Bank of India Personal Loan Interest Rates Table
| Particulars | Salaried | Self-Employed |
| Interest rate | 12.90% - 13.90% p.a. | 12.90% - 13.90% 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 | Rs.229* | Rs.229* |
| 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 | 21 - 58 years | 21 - 58 years |
| Prepayment/ForeClosure Charges | None | None |
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.
Find out major factors affecting Eligibility of Bank of India Personal Loan
Calculating Interest On BOI Personal Loan
There are two formulas to calculate the interest on your BOI Personal Loan. However, it’s convenient and easier to use BankBazaar’s Personal Loan EMI Calculator. This will help you determine the interest as well as your monthly payments. Just enter your details and click ‘Calculate’.
Example 1: Calculate monthly payment on a secured loan of Rs.6 lakh at the lowest interest rate
Let’s say you’ve taken a Rs.6 lakh secured loan for 2 years from Bank of India at an interest rate of 13.2% p.a. You also have to consider the processing fees of 2% on your loan amount.
Your EMI will amount to Rs.28,581.
Take a look at the loan amortisation table for a 2-year loan taken in March 2019 until February 2021.
| Year | Principal paid (Rs) | Interest paid (Rs) | Balance amount (Rs) |
|---|---|---|---|
| 2019 | 2,31,021 | 54,795 | 3,68,979 |
| 2020 | 3,12,745 | 30,233 | 56,233 |
| 2021 | 56,234 | 930 | 0 |
Example 2: Calculate monthly payment on an unsecured loan of Rs.6 lakh at the highest interest rate
Now let’s assume you have taken an unsecured loan at an interest rate of 14.2% p.a. Considering all the other factors stay the same, your EMI will now be Rs.28,864.
Your loan amortisation table for 2 years (March 2019 – February 2021) will be the following:
| Year | Principal paid (Rs) | Interest paid (Rs) | Balance amount (Rs) |
|---|---|---|---|
| 2019 | 2,29,607 | 59,035 | 3,70,393 |
| 2020 | 3,13,673 | 32,702 | 56,720 |
| 2021 | 56,720 | 1,009 | 0 |
Use BOI Personal Loan Calculator to calculate your EMIs in 2 Mins
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
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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.
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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.
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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.
