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    Indian Overseas Bank (IOB) Personal Loan Interest Rates

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    14.05% Fixed
    1.01% to 1.10% One time fee
    1L - 15L
    1-5 Years
    Response Time Within 30 minutes
    Documents
    Perks
    Think about
    Eligibility Criteria
    Personal Loan BYTES FROM OUR KITCHEN

    About Indian Overseas Bank Personal Loan

    Indian Overseas Bank offers two types of personal loans, Clean Loan and Consumption loans- Sahayika. Clean loan is given to government employees, public sector undertaking employees, private firm employees and LIC agents to meet their social or financial commitment. Consumption loans- Sahayika is given to confirmed permanent employees of a reputed organisation, to a professional, self-employed and businessman. Borrower must submit a security or have a third party personal guarantor.

    Indian Overseas Bank Personal Loan interest rates

    Indian Overseas Bank personal loan interest rates depends the borrower’s on income, borrower’s credit history, the RBI rates, inflation etc. Indian Overseas Bank personal loan interest rate for the year 2015 varies from 13.65 percent to 14.90 percent. The interest rates is offered to a borrower in such a way that he is not burdened with the EMI payment.

    Indian Overseas Bank Personal Loan interest rates table:

    Interest rates

    Clean loan: 14.90 percent

    Consumption loans- Sahayika: 13.65 percent

    Loan amount Maximum loan amount: Rs.15 lakhs
    Loan tenure

    Minimum tenure- 1 year

    Maximum tenure- 5 years

    EMI per lakh (lowest interest rate and maximum tenure)

    Click here to check the EMI on your personal loan

    Rs.2,309 per month
    Base rate (w.e.f. 20th July, 2015)

    Up to Rs.75 lakhs: 9.90 percent

    Above Rs.75 lakhs: 10.15 percent

    Women borrowers: 9.90 percent

    How to calculate interest or EMI on Indian Overseas Bank Personal Loan?

    EMI or Equated Monthly Instalment is the amount that the borrower has to pay to the bank each month towards the interest and the principal loan amount. The principal amount and interest is divided by the tenure in which the loan has to be repaid. The formula to calculate the EMI is:

    EMI= Principal X Rate of interest on a monthly basis X (1+rate of interest on a monthly basis) to the power of the loan tenure divided by [(1+rate of interest on a monthly basis) to the power of the loan tenure – 1]

    BankBazaar.com makes the EMI calculation easy by providing free online EMI Calculator. It also gives you the amortization table that will contain details of how much of the EMI amount is going towards the principal amount payment and how much of it covers the interest amount.

    For example, Mr. Jack has taken a personal loan for Rs.1 lakh from Indian Overseas Bank. The interest rate he is being offered is 13.65 percent for a tenure of 5 years. By the end of the fifth year, he would have paid Rs.38,523 towards total interest and his loan EMI is Rs.2,309. He will be paying 27.8 percent towards the interest and 72.2 percent towards the principal loan amount. His amortization table will look as follows:

    Year Principal paid (in rupees) Interest paid (in rupees) Balance amount (in rupees)
    Year 1 14,968 12,736 85,032
    Year 2 17,144 10,561 67,888
    Year 3 19,636 8,068 48,251
    Year 4 22,491 5,214 25,760
    Year 5 25,760 1,944 0

    Factors affecting Indian Overseas Bank Personal Loan interest rates

    Indian Overseas Bank personal loan interest rate varies for every applicant due to various factors. Some major factors affecting the interest rates are as follows:

    • Loan tenure:

      If the loan tenure is shorter, the interest rate is higher compared to loans with a longer tenure.

    • Repayment capacity:

      Indian Overseas Bank checks a person’s repayment capacity before offering him a loan and before deciding the interest rate. The bank will make sure that the EMI amount will not exceed 40 percent of the borrower’s income. The bank also looks into his income, his assets and his creditworthiness before finalising on an interest rate. The applicant’s CIBIL report is checked before the bank finalises on giving the loan and before deciding the interest rate that is to be offered to him.

    • Borrowing class:

      Young applicant’s will not be so stable at their job and would be shifting jobs till they find one that works best for them. Banks usually stay away from people who do not have a constant flow of income. Indian Overseas Bank offers personal loan to government employees, public sector undertaking employees, private firm employees, LIC agents, confirmed permanent employees of a reputed organisation, professional, self-employed and businessman.

    • Relationship with the bank:

      Indian Overseas Bank offers special offers, interest rates and charges to those who have been having a long term relationship with the bank. You may even get a discount on the processing charges or might get a reduced interest rate. The bank also gives special interest rates to the women borrower’s as well.

    The interest rates and processing charges are charged at the sole discretion of the bank and are subject to change.

    How CIBIL score affects Indian Overseas Bank Personal Loan interest rates?

    CIBIL Score and credit report plays a major role in deciding an applicant’s interest rate. CIBIL report consists of your repayment history and shows how efficiently you have made the payments and how responsibly you have handled the credit. Banks usually accept application of individuals having an ideal score of 750 and above. Those with a lower score will be termed risky and the bank might offer personal loan at a higher rate of interest. Check your credit score before applying for a loan so if the score is low, you can fix it and then apply for a fresh loan.

    Key things about Indian Overseas Bank Personal Loan interest rates

    Before applying for Indian Overseas Bank Personal Loan, you must know the following factors:

    • Fixed interest rate is when a fixed interest rate is set on the personal loan and you will be required to pay a fixed amount of interest throughout the tenure.
    • Floating interest rate will change as per the change in the bank’s base lending rate. The EMI will keep changing with the changing rate.
    • To avail Indian Overseas Bank Personal Loan, you must have a guarantor or provide security.
    • When the repo rate goes up, your interest rate will also go up.
    • Indian Overseas Bank offer personal loans to government employees, public sector undertaking employees, private firm employees, LIC agents, confirmed permanent employees of a reputed organisation, professional, self-employed and businessman.
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