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  • IOB Personal Loan

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  • Indian Overseas Bank offers personal loans at attractive interest rates to its customers. The repayment tenure can go up to 5 years and the personal loan can be availed by anyone depending on the terms and conditions set by the lender.

    • Interest rates starting at 11.90 % p.a. onwards
    • Repayment period is 5 years
    • Low processing charges
    • Quick approval
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    About Indian Overseas Bank

    Indian Overseas Bank is a major bank based in Chennai (Madras), with about 3350 domestic branches, 3 extension counters and six branches overseas. Indian Overseas Bank has an ISO certified in-house Information Technology department, which has developed the software that 3257 branches use to provide online banking to customers; the bank has achieved 100% networking status as well as 100% CBS status for its 3350 branches.To avail IOB personal loans, the take home pay of individuals, after deduction of the proposed loan installment should be more than 50% of the gross pay.In addition, LIC agents are also eligible to apply for the loan subject to terms and conditions. Continue reading to view more details about this loan.

    Documentation needed to apply for an IOB Personal Loan

    • 1. Signed application form with photograph
    • 2. Copy of passport/voter ID card/driving license
    • 3. Processing fee cheque
    • 4. Last 3 months bank statement/6 months bank passbook
    • 5. Documentation for salaried applicants:
      • Latest salary slip
      • Current dated salary certificate with the latest Form 16
    • 6. Documentation for self-employed applicants:

      • Latest Bank statement
      • Latest ITR or Form 16

    IOB Personal Loan Interest RatesUpdated on 23 Jan 2020

    IOB Personal Loan Details
    Interest Rate 13.55%
    Processing Fees 1.01% to 1.10% of loan amount
    Loan Tenure 60 months
    Guarantor Requirement Guarantor required

    Overview of Indian Overseas Bank(IOB)

    Enquire for IOB Personal Loan

    The Indian Overseas Bank (IOB) is a public sector bank with more than 3300 branches in India, and 8 overseas branches. It is one of the foremost banks in India with low interest rates on borrowings, extensive coverage, speedy processes, and good customer support. Headquartered in Chennai, Tamil Nadu, IOB is one of the largest banks in India and has left behind a trail of happy customers throughout its decades of existence.

    About IOB (Indian Overseas Bank) Personal Loan

    IOB provides Personal Loans for customers who show a steady source of income. These include employees of PSUs, government, reputed private firms, and other companies. The customer has to be in active service at the time of requesting loans.

    IOB personal loans are available under two segments:</>

    • IOB Clean Loan:

      This is available for salaried professionals working in reputed or other institutions in India. The maximum loaned amount is ? 15 lakhs.
    • IOB Sahayika Loan:

      This personal loan available for self-employed people and can be used for social financial requirements such as marriages, medical treatments, or children’s education. The maximum amount that can be borrowed is ? 10 lakhs.

    Why Choose IOB Personal Loan?

    IOB is a reputed public sector bank with operations throughout the country. It has received a lot of awards through the years such as “Banking Excellence Award” from the Finance Ministry of Government of India (GOI), National award for MSME lending excellence, Bankers’ Excellence Award from Rotary International - United States of America, among many others.

    3/4th of total stakes in IOB is owned by GOI, while remaining stakes are owned by the public. As such, there’s the added benefit of banking with a government-owned enterprise, which increases reliability and trust on the part of the borrower. Also, IOB Personal Loan interest rates are very competitive and the registration and other fees are low compared to other banks.

    Features of IOB 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.

    What are the interest rates on IOB personal loan?

    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 Tenure (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.

    IOB Personal Loan Eligibility

    • 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.

    How do I calculate IOB personal loan EMI?

    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.

    IOB personal loan FAQs

    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.


    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

    Indian Overseas Bank Personal Loan Reviews

    • IOB Personal Loan
      "Best loan"
      0.5 5.0/5 "Blown Away!"
      I have taken a personal loan from Indian Overseas and the loan amount was Rs. 2,00,000and the interest rate was very low. I am paying EMI Rs. 6800 with the tenure of 3 years.I have taken this loan to my friend and no pre closure charges. Customer service was good, i am working in IOB my salary is credited in this bank and also manager recommended so based on this i got this loan offer.
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 17, 2020
    • IOB
      IOB Personal Loan
      0.5 4.0/5 "Great!"
      I have a personal loan in Indian Overseas bank, that time have required only less amount so have approached them. But day span was lengthy for loan disbursement. When I had experience, they have sanctioned the loan within 2 to 4days. The rates are quite good.
      Was this review helpful? 0
      , mumbai
      Reviewed on Oct 09, 2019
    • IOB Personal Loan
      "Very Quick Response"
      0.5 5.0/5 "Blown Away!"
      I have purchased the home loan with Indian Overseas Bank 1 year bank. I have selected this bank because of the lower interest rate. I have been paying the EMI of 12000 per month. I have selected the tenure period the tenure period for 60 months. I have received the proper response from IOB Services.
      Was this review helpful? 3
      , hyderabad
      Reviewed on Jan 17, 2019
    • IOB Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      My car loan experience was good with Indian Overseas bank, the loan amount was sufficient and the rate of interest was high when compared to other banks. Tenure period for this loan is 3 years and the customer service was good.
      Was this review helpful? 6
      , hyderabad
      Reviewed on Jan 03, 2019
    • IOB Personal Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      The experience with this personal loan has been good and the loan amount of 2,00,000 has been sufficient. The interest rate with them has been nominal when compared with the market rate and there has not been any sort of additional charges which they had made so far.
      Was this review helpful? 4
      , kolkata
      Reviewed on Dec 20, 2018
    • IOB Personal Loan
      "Need to reduce the interest rate"
      0.5 5.0/5 "Blown Away!"
      Previously i was working with IOB bank and the service was fine. I have taken a personal loan with them. The interest rate was very high which is 15% and there was a processing fee of 2%. I have applied the loan amount of Rs. 3 lakhs. Total tenure period of the loan is 1.5 years
      Was this review helpful? 3
      , chennai
      Reviewed on Dec 19, 2018
    • IOB Personal Loan
      "Good in Service"
      0.5 5.0/5 "Blown Away!"
      I had taken a Personal loan with IOB bank and i would say they were good in services. I never had any complaint with the services. When i had submitted the application, it was processed on time. There was no delay and overall i carried a good experience. The loan has been closed.
      Was this review helpful? 4
      , chennai
      Reviewed on Dec 19, 2018
    • IOB Personal Loan
      0.5 5.0/5 "Blown Away!"
      I have taken a small personal loan in Indian Overseas Bank in July 2018. The process was better and services are good. The rate of interest and charges are very low comparing to other banks. The loan duration is only for 10 months. I have taken 50K.
      Was this review helpful? 3
      , chandigarh
      Reviewed on Nov 29, 2018
    • IOB Personal Loan
      0.5 5.0/5 "Blown Away!"
      I am using the personal loan from the INDIAN OVERSEAS BANK from last 3 years and it is yet to finish. I am paying my EMI on monthly basis through auto debit. I got the sufficient loan amount also the interest rate is 10.5% which is nominal. The processing fee is good.
      Was this review helpful? 2
      , dindigul
      Reviewed on Oct 18, 2018
    • IOB Personal Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      Got the personal loan with the INDIAN OVERSEAS BANK around 3 years ago. The customer support service and the response is good with the Indian overseas bank. The rate of interest and the charges are average with the Indian overseas bank personal loan process.
      Was this review helpful? 4
      , hyderabad
      Reviewed on Jun 13, 2018
    • IOB Personal Loan
      "high rate of interest"
      0.5 5.0/5 "Blown Away!"
      I had a personal loan in INDIAN OVERSEAS BANK. They processed my Personal loan application and approve and sanctioned with in 48 hours. But rate of interest is quite high which is 14 % by comparing to other banks. The customer service is good and well responsive.
      Was this review helpful? 6
      , chennai
      Reviewed on Feb 02, 2018
    • IOB Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      The INDIAN OVERSEAS BANK has approved my personal loan and disbursed my loan amount within 1 week time. The customer support is good with the INDIAN OVERSEAS BANK. They have collected the documents on time and they have disbursed the required loan amount.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 16, 2018
    • IOB Personal Loan
      "Good for personal loan"
      0.5 5.0/5 "Blown Away!"
      With IOB I had taken a personal loan. The rate of interest was 5%. As i am the staff of the particular bank we do have a special interest rates. documentation as like the government norms we have to produce all the documents. In short I would say this bank is good for personal loan.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Dec 06, 2017
    • IOB Personal Loan
      "Good rate of interest"
      0.5 5.0/5 "Blown Away!"
      I have taken a personal loan with Indian Overseas Bank and it was Straight through process with no requirement of any documents as i have an account for the last 20 years. I also had an additional benefit as the rate of interest for my loan was a nominal one.
      Was this review helpful? 2
      , chennai
      Reviewed on Nov 24, 2017
    • IOB Personal Loan
      0.5 3.5/5 "Pretty good"
      I have taken the personal loan with the Indian overseas bank and the customer service is better one, also the interest rate is around 11.4%, which is floating based. I would like to say that the customer service is an average one.
      Was this review helpful? 1
      , chennai
      Reviewed on Nov 17, 2017
    • IOB Personal Loan
      "Not too good"
      0.5 2.0/5 "Expected more"
      I have taken a personal loan with Indian Overseas bank and i would say that the experience has not been good. The service is not up to the mark and the process was delayed a lot. They do not have a quick response system and i am looking forward to transferring my personal loan to a different bank.
      Was this review helpful? 4
      , chennai
      Reviewed on Nov 14, 2017
    • IOB Personal Loan
      0.5 5.0/5 "Blown Away!"
      I have also taken a personal loan from IOB and the process for the document collection and disbursement was completed in one week. The rate of interest and processing charges are normal. There is only eight months more for the loan to complete and it is a smooth process too.
      Was this review helpful? 1
      , chennai
      Reviewed on Nov 14, 2017
    • IOB Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      The documentation process was good with Indian overseas bank. They have collected the required documents within 2 to 3dayas of time. The customer support is good with Indian overseas bank. The required loan amount has been approved and I am satisfied with it. The rate of interest was 11.99% which is nominal when compared with others.
      Was this review helpful? 0
      , anand
      Reviewed on Nov 06, 2017
    • IOB Personal Loan
      "Very good experience"
      0.5 5.0/5 "Blown Away!"
      IOB is better in the customer services. The response is good and there are no hassles in the communication. I have taken a personal loan and there was a good response and the disbursement was also on time. The after loan services was excellent.
      Was this review helpful? 1
      , thanjavur
      Reviewed on Nov 01, 2017
    • IOB Personal Loan
      "Fast process"
      0.5 5.0/5 "Blown Away!"
      I am happy with IOB for offering me a personal loan. This is a earlier experience. The customer services and response was excellent as I got the loan within two days. The rate of interest was around 14%. The processing charges were very much normal and overall no hassle faced.
      Was this review helpful? 0
      , navi mumbai
      Reviewed on Jul 11, 2017
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