|OBC Personal Loan Interest Rates 2018|
|Interest rate floating(daily reducing)||10.65% p.a.||10.65% p.a.|
|Loan Amount||Rs.5 lakhs||Rs.5 lakhs|
|Loan Tenure||6 months to 5 years||1 to 5 years|
|Lowest EMI||Rs.2,214.35 (for Rs.1 lakh loan amount with maximum loan tenure at the lowest interest rate).||Rs.2,214.35 (for Rs.1 lakh loan amount with maximum loan tenure at the lowest interest rate).|
|Age||21 to 60 years||21 to 60 years|
Oriental Bank of Commerce offers personal loan for individuals to meet expenses of marriage, education, family functions, to purchase consumer durables or for any other legitimate monetary purposes. The loan is offered to working individuals and pensioners. The borrower will need to provide a collateral or a guarantor to avail the loan.
Oriental Bank of Commerce personal loan interest rates depends the borrower’s on income, borrower’s credit history, the RBI rates, inflation etc. Oriental Bank of Commerce personal loan interest rate for the year 2015 is 12.4 percent. The interest rates is offered to a borrower in such a way that he is not burdened with the EMI payment.
EMI or Equated Monthly Instalment is the amount the borrower has to pay to the bank each month towards the payment of 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 through the 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. Jim has taken a personal loan for Rs.1 lakh from Oriental Bank of Commerce. The interest rate he is being offered is 12.4 percent for a tenure of 5 years. By the end of the fifth year, he would have paid Rs.34,683 towards total interest and his loan EMI is Rs.2,245. He will be paying 25.8 percent towards the interest and 74.2 percent towards the principal loan amount. His amortization table will look as follows:
|Year||Principal paid (Rs.)||Interest paid (Rs.)||Balance amount (Rs.)|
Oriental Bank of Commerce personal loan interest rate varies for every applicant due to the following factors:
If the loan tenure is shorter, the interest rate is higher when compared to loans with a longer tenure.
Oriental Bank of Commerce 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 30 percent of the borrower’s income. The bank also looks into his income, his assets and his creditworthiness before finalising on an interest rate.
Young applicants are not so stable at their job and banks usually stay away from people who do not have a constant flow of income. Oriental Bank of Commerce offers personal to working individuals and pensioners.
You may even get a discount on the processing charges or might get a reduced interest rate if you have been having a good long term relationship with the bank.
The interest rates and processing charges are charged at the sole discretion of the bank and are subject to change.
CIBIL Score and credit report plays a major role in deciding an applicant’s interest rate. CIBIL report is a document that has all the information on your repayment history and shows 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. It is advisable to check your credit score before applying for a loan. If your score is low, then you can fix the score before applying for a loan.
Before applying for a Personal Loan, you must know the following factors:
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