Indian Overseas Bank Personal Loan

• Clean Loan

This loan can be used for any purpose encompassing social or financial commitment. Loan amounts are decided by the salary received. Highest loan amount is ? 15 lakhs or 10 times salary, whichever is lower. This amount is only applicable if the salary is directly remitted or directed through the respective loan issuing branch.

For all other cases, a maximum of 5 times the monthly salary or ? 1 lakh, whichever is lower, is provided as loan.

LIC agents can avail loans up to 10 times their average calculated monthly commission, or ? 10 lakh, whichever is lower.

As security, 2 third party guarantors are needed, with each having salary equal to or more than the borrower’s gross takeaway.

• Sahayika Loan

This loan is available for commitments such as marriages, education, holidays and other commitments under law. The bank doesn’t verify declared purposes.

The maximum amount that can be borrowed is ? 10 lakhs. This amount though is dependent on the actual value of the offered security, as well as the borrower’s capacity to repay the loan. Business people, self-employed, or other professionals stand to borrow the income amount from last year, or ? 10 lakhs, whichever is lower.

As security, loan takers have to provide liquid securities or immovable property including UNITS, ULIP, KVP, IVP, NSC, LIC policies, and other similar items. The available margin is 10% on policies bought from LIC and other private life insurers, 25% for liquid securities as mentioned above, and 50% on immovable property.

The maximum repayment period of both the loan types discussed above is 60 months, while the minimum duration is 12 months.

To allow customers to take care of any social or financial commitment, Indian Overseas Bank provides the IOB Clean Loan and the IOB Sahayika Loan. Both of these personal loans are accompanied by several beneficial features and can be availed at attractive rates of interest. The interest rates offered for the IOB Clean Loan are set on the basis of MCLR i.e. Marginal Cost of funds based Lending Rate. MCLR consists of 4 components “ Tenor premium, marginal cost of funds and operating costs and negative carry on account of cash reserve ratio (CRR).

Indian Overseas Bank MCLR (Marginal Cost of funds based Lending Rate) (For new borrowers)

Following the guidelines issued by the Reserve Bank of India, IOB will offer personal loans based on MCLR based interest rate, effective from April 1, 2016.

MCLR Benchmark Tenor (Period)	Benchmark Rates (MCLR)
Overnight	9.50 %
1 month	9.55 %
3 months	9.60 %
6 months	9.65 %
1 year	9.70%
2 years	9.80 %
3 years	9.90 %

Indian overseas Bank Personal Loan Interest Rates (MCLR)

Following are the interest rates offered by Indian Overseas Bank for its Personal loans “ IOB Clean Loan and IOB Sahayika Loan.

IOB Clean Loan	IOB Sahayika Loan
14.05% (MCLR for 1 year)	13.05% (MCLR for 1 year)

Indian Overseas Bank Base Rate & Prime Lending Rates (For existing borrowers)

All existing borrowers of Indian Overseas Bank can avail personal loans at the existing Base Rate, which is subject to change from time to time.

Base Rate (With effect from 15.10.2016)	9.70%
Prime Lending Rate (With effect from 5.12.2016)	15.50%

Loan Amount	Other Borrowers	Women
Up to 30 lakhs	@ BR i.e. 9.70%	@ BR i.e. 9.70%
Above Rs 30 lakh & Up to Rs 75 lakh	@ BR i.e. 9.70%	@ BR i.e. 9.70%
Above Rs 75 lakh	@ BR + 0.25% i.e. 9.95%	@ BR i.e. 9.70%

Indian Overseas Bank Personal Loan Interest Rate (Base Rate)

Following are the interest rates for personal loans offered by Indian Overseas Bank.

Loan	Rate of Interest (Floating)
IOB Clean Loan	13.45%
IOB Clean Loan	14.70%

All existing borrowers who have taken personal loans with Indian Overseas Bank have the choice to either continue with the Base Rate System or migrate to the MCLR based interest rate system.

Note: The MCLR rates given above are effective as of April 1, 2016. To know the currently applicable interest rates for personal loans, please contact the bank at the time of applying for the same. Also, interest rates for personal loans are subject to change with change in MCLR / Base Rate.

• For Clean Loan

Employees of PSUs, government, reputed private firms, and other companies presently in service. The final take home pay, once loan instalment deductions are carried out, shouldn’t be less than 50% of the gross pay. Life Insurance Corporation of India agents can also apply for this loan under conditions.

Employees must have an active savings bank account with IOB in the loan issuing branch; Salaries should also be directed through the savings bank account of the loan issuing branch; A letter from the employer undertaking deduction of instalment from salary every month till the loan tenure is active; and another letter from the employer undertaking dues recovery through employee’s terminal benefits in case of resignation, retirement, or death.

• For Sahayika Loan

Self-employed individuals with at least 3 years of continued operations, or permanent employees of reputed companies can apply for this loan. The final take home shouldn’t be less than 40% of gross pay after instalment deductions have been made.

Calculating the Equated Monthly Instalment, or EMI, is a very simple task with BankBazaar’s dedicated Personal Loan EMI Calculator tool. The calculator can be accessed by following the steps given below:

• Go to Financial Tools > Personal Loan EMI Calculator.
• Users have to next select the respective “Loan Amount” and “Tenure” on a scale by selecting their choices. The maximum loan amount that can be calculated is 30 lakhs, and the tenure has a cap of 5 years.
• The next box, marked as “Fee”, will ask users to enter the relevant interest rate % that they are going to pay. Default interest rates will already be filled, so users just have to change the figure provided in the Fee field.
• Once all the details have been filled, clicking the “Calculate” button will take users to a list of comprehensive information regarding the IOB Personal Loan such as monthly EMI, total due interest, as well as amortization details (monthly/yearly), for their reference.

All the information displayed at the end of the process allow users to plan their loan repayments with ease and according to hard data.

1. Am I eligible for IOB Personal Loan?

   IOB Personal Loan offers personal loans only for salaried individuals earning more than the minimum stipulated amount per month depending on the city of their residence. The minimum monthly income required for IOB Personal Loan is more than 50% of the gross pay. If you fall into this group, you can definitely apply for a IOB personal loan.

2. How do I repay IOB Personal loan?

   You can repay the loan in Equated Monthly Installments (EMI's) using the ECS facility or through post-dated cheques.

3. What is the maximum loan one can get from IOB?

   IOB offers personal loans as high as Rs. 15 Lakhs for successful applicants depending on their financial record and repayment history.

4. What is the tenure for IOB personal loan?

   IOB offers personal loan with a tenure period ranging upto 60 months making it suitable for all loan seekers.

5. How does the bank determine my eligibility for a personal loan?

   Customers who are interested in applying for a personal loan with Indian Overseas Bank will have to fill in and submit the loan application form along with the required set of documents which will be assessed by the bank to determine your eligibility for a personal loan. The documents you will have to furnish include proof of residence, proof of income, and your credit report. After a thorough analysis of your credit history, the bank will check if you earn the income required to make EMI payments on time, and if you meet all the eligibility criteria laid down by the bank, you will receive the loan amount as soon as possible.

6. How much money can I borrow through a personal loan from Indian Overseas Bank?

   The amount of money you can borrow through a Personal loan from Indian Overseas Bank will depend on your ability to repay. The bank will not grant you an amount in excess of 40% of your monthly income so that EMI payments can be made on time. Self-employed individuals will have to show proof of profit to confirm that they can make repayments without any delays. Other factors that play a part in determining how much money the bank will offer you include your credit history, your job security, the company with which you are employed, and your residential location.

7. What interest rates can I expect when taking a personal loan from Indian Overseas Bank?

   The interest rate applicable to each loan will depend upon the customer and his / her credit history, job security, monthly income and a few other factors that the bank takes into consideration. Usually the interest rates range between 12% and 28%.

8. Do my chances of availing a personal loan increase if I have a co-applicant?

   Customers who do not meet all eligibility criteria or those who have a poor credit history can opt for co-applicants as it not only increases their chances of availing a loan, but also exposes them to higher loan amounts and lower interest rates.

9. Can I prepay my personal loan, and if so, what are the prepayment charges that will be applicable?

   Since loans are granted with the guarantee from the customer that it will be repaid within a predetermined time frame, customers who wish to clear their debt sooner have the option to do so, but will have to face a prepayment penalty fee in this case. The fee is usually around 5% of the outstanding loan amount but may be different for different customers depending upon their credit history.

*This article is provided only for consumer information on an as is where is basis and BankBazaar does not claim or represent to be connected with IOB. For further information about any of the products mentioned above please contact IOB.