About Indian Overseas Bank Personal Loan
Indian Overseas Bank offers two types of personal loan to help an individual with the diverse financial needs. It could be for paying for your marriage, educating your children, medical treatment, etc. The two types of personal loans offered are Clean Loan and Consumptions Loans- Sahayika.
Indian Overseas Bank Personal Loan Eligibility
The eligibility to avail an Indian Overseas Bank personal loan is as follows:
Clean Loan:
- Profile: The applicant must be a confirmed permanent employee working for a reputed organization or a professional or self-employed or a businessman with three years activity in the field.
- Age: The applicant must be above 21 years of age but below 58 years of age.
- Income: The salaried applicants take home pay must be more than 40% of the gross salary after considering the installment on the loan.
- Documents: The applicant must fill up the application indicating the purpose for which he needs the loan. Proof of employment and income. Proof of standing in the field for professionals, self-employed and businessmen. Income Tax assessment order. Details of security offered and the copies of the documents.
Factors affecting Indian Overseas Bank Personal Loan Eligibility
There are various factors that affect the eligibility criteria while taking a personal loan from RBL Bank.
- Residence: If the applicant is living in a metro city, then he will get the loan quickly. Also if the applicant has a house of his own, it is preferred as then the applicant will not have to pay rent and then he will have a higher disposable income.
- Income: The applicant’s income will decide how much EMI he can afford. If the applicant’s income is higher, then he will easily get loan for a higher amount.
- Age:Banks usually stay away from giving loans to young individuals as they keep changing jobs. The banks prefer those who have a stable work life.
- Type of employment: The self- employed professionals and nonprofessionals are required to have higher work experience that compared to salaried individual and salaried professionals.
- Employment status: The banks prefer those who have been employed in a company for a long time.
- CIBIL Score: The applicants’ CIBIL score and credit report is referred before the bank looks further into the applicant’s profile.
How CIBIL score affects your Indian Overseas Bank Personal Loan Eligibility?
The first thing Indian Overseas Bank does when they receive an application for personal loan is that they check the applicants CIBIL score.
The bank checks for the following:
- The repayment history.
- Credit available for the applicant.
- Credit built by the applicant. They check if the applicant has equal secured and unsecured credit.
- The number of credit cards that the applicant has and how much credit he has utilized under the credit card.
- The overall credit utilization.
- The bank also checks if the applicant has settled any loan. If the applicant has agreed to settle for a loan due to certain financial constraints, then it gets recorded in the credit report and stays in the report for 6 years. The settlement of the loan is considered as a negative remark and hence the Indian Overseas Bank might not offer you a personal loan as they might be unsure about your capacity to repay the loan.
- Capacity to repay the loan. This information can be gathered from the profile as it includes his income information and age and the assets that he has acquired through credit etc.
How to increase Indian Overseas Bank Personal Loan Eligibility?
You can do the following to increase Indian Overseas Bank personal loan eligibility :
- Maintain a good credit history by making all the payments on time.
- Get lower EMIs on existing loans and if you are able to, refinance your existing loan for a lower interest rate or extend the tenure of the existing loan. This reduces the EMIs each month and ensures that you do not miss out on making payments.
- Prepay the loans if you have lesser EMIs left on any loan. This closes the loan and the applicant will then have a higher disposable and stand a chance of getting a higher amount loan.
- Have both unsecured and secured loans, it shows the bank that you do have managed to attain some assets over the period of time and not just built credit.
- Don’t apply for too many loans as all the banks will run a credit check which gets recorded in the credit report. This will look bad on your report and affects your credit score.
- Don’t have too many credit cards. Though you may not have used the credit on all of the cards, it lowers your overall credit limit.
FAQs on Indian Overseas Bank Personal Loan Eligibility
Q. What is the age requirement for an individual to take an Indian Overseas Bank personal loan?
A. At the time of taking the loan the minimum age requirement is 21 years and the applicant must be less than 58 years of age.
Q. Is there a minimum income requirement for a salaried applicant availing a ‘Clean Loan’?
A. Yes, the salaried applicants applying for a Clean Loan must have a take home pay more than 40% of the gross salary after considering the installment on the loan.
Q. Is there a minimum income requirement for a salaried applicant availing a ‘Consumptions Loans- Sahayika’?
A. Yes, the salaried applicants applying for a Clean Loan must have a take home pay more than 50% of the gross salary after considering the installment on the loan.
Q. What is the work experience that is required for an individual who wishes to avail ‘Clean Loan’ from Indian Overseas Bank?
A. The applicant must be a confirmed permanent employee working for a reputed organisation or a professional or self-employed or a businessman with three years activity in the field.
Q. What is the work requirement for an individual who wishes to avail ‘Consumptions Loans- Sahayika’ from Indian Overseas Bank?
A. The applicant must employed in government, public sector undertaking or reputed organisations. The employment must be confirmed.
Q. What are the documents required while taking ‘Clean Loan’ from Indian Overseas Bank?
A. The applicant must fill up the application indicating the purpose for which he needs the loan. Proof of employment and income. Proof of standing in the field for professionals, self-employed and businessmen. Income Tax assessment order. Details of security offered and the copies of the documents.
Q. What are the documents required while taking ‘Consumptions Loans- Sahayika’ from Indian Overseas Bank?
A. The applicant submit the application form, salary certificate of applicant and the guarantor and an undertaking letter from employer to deduct the monthly installment and to recover the dues from terminal benefit if necessary.
Q. What is the maximum personal loan sanctioned by Indian Overseas Bank?
A. The maximum amount sanctioned towards personal loan is Rs.15 lakhs.
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