About Oriental Bank of Commerce Personal Loan
Oriental Bank of Commerce (OBC) was founded in Lahore in the year 1943. Since, partition of India and Pakistan happened in the year 1947, the bank had to shift its headquarters from Lahore to Amritsar. Currently, the bank is one of the top nationalized banks of the country. Nationalization of the bank happened in the year 1980 after which the bank was strengthened greatly.
The bank acquired Bari Doab Bank and Punjab Co-operative Bank in the year 1996. Oriental Bank of Commerce is the seventh largest bank of India, among all the public-sector banks. In the year 2004, OBC took over Global Trust Bank which brought with it 103 branches. This raised the total number of OBC branches to 1,092, spread across the length and breadth of the nation. The bank has functions across a wide variety of financial services like private banking, corporate banking, wealth management, equity trading, NRI services and medical insurance services. The bank also deals with government related functions like pension systems and Personal Provident Fund schemes.
Oriental Bank of Commerce Personal Loans are very popular among loan borrowers. The competitive loan offers mixed with the assurance of public sector, make these Personal Loans an ideal choice for customers. These personal loans can be availed for a variety of reasons like wedding, house renovation, child’s education, a family vacation and so on.
Why choose Oriental Bank of Commerce Personal Loan?
Oriental Bank of Commerce Personal Loans are a great way to fulfill your urgent cash requirements without having to take out money from your savings. Also, with flexible payment tenures and amazing rates of interest, these personal loans are sure to make you feel at ease with expenses like a wedding in the family or a trip to an exotic location.
Attractive Rates of Interest: The rate of interest offered on Oriental Bank of Commerce Personal Loans is extremely competitive.
Flexible Personal Loan Amount: Personal loans availed can be anywhere between Rs.50,000 and Rs.5,00,000, depending upon the loan eligibility of the customer.
Nominal Documentation: Oriental Bank of Commerce ensures that you get your required personal loan without any hassles of copious paperwork. Hence, a few basic documents are all that is required to help you take care of all urgent/planned personal expenses.
Easy Repayments: Repayment of Oriental Bank of Commerce personal loans can be done either through cheque or through online EMIs, both of which are extremely easy to track and pay.
Personal loans offered by Oriental Bank of Commerce are great financial tools to help a customer sail through important and urgent financial needs. These needs can be as urgent as medical expenses or planned family vacations. Oriental Bank of Commerce makes sure your financial needs are met and met soon. These Oriental Bank of Commerce personal loans come at attractive interest rates and with flexible loan tenures, making sure you do not feel weighed down by the burden of your financial expenses.
Zero Prepayment Charges: Oriental Bank of Commerce does not charge a pre-closure fee in case a customer wishes to pay off his/her personal loan earlier than the loan tenure agreed upon. This features provides a great amount of financial flexibility to the customer, since he/she can choose to pay more whenever there is surplus cash without having to worry about pre-payment charges, which if levied, are considerable enough to avoid pre-payments.
Fast Loan Processing: Oriental Bank of Commerce has a quick turnaround time on their personal loan applications. Hence, you need not wait for days and weeks to get a loan disbursed to your bank account. Meet your financial needs as soon as they arise and enjoy a hassle-free banking experience with Oriental Bank of Commerce.
Flexible Tenure: The loan repayment tenure is flexible and can be repaid in a maximum of 60 months. Pre-payment charges are nil and hence loans can be paid in before the stipulated loan tenure also.
You can avail personal loans from Oriental Bank of Commerce to meet a financial need such as weddings, education etc. The final interest rate is dependent on two of key factors: the MCLR benchmark and Base Rate. Any changes in these will affect the interest payable. If loan is taken after April 1st, 2016, the interest will be charged using the MCLR system.
Oriental Bank of Commerce Marginal Cost of Funds Based Lending Rate (MCLR) (For new borrowers)
According to RBI’s guidelines, OBC introduced MCLR benchmark rates which are shown in the table below. These benchmarks are expected to change on a regular basis. Fluctuations in current economic conditions will reflect in these rates, offering customers a stable interest platform.
| MCLR Benchmark Tenure (Period) |
Benchmark Rates (MCLR) |
| Overnight |
9.35% |
| 1 month |
9.40% |
| 3 months |
9.45% |
| 6 months |
9.50% |
| 1 year |
9.60% |
Personal loan interest rates (MCLR)
Oriental Bank of Commerce can charge differential rates and depends on the tenure, purpose and loan quantum. The bank will add certain percentage points to the MCLR benchmark in most cases which makes the final interest higher than the current MCLR. Depending on the relationship of the customer with the bank, he/ she may be able to avail a discount on the interest. As a new borrower, you will be required to pay interest as per the new MCLR benchmark.
Oriental Bank of Commerce Base Rate (For existing borrowers)
| Base Rate |
9.70% per annum (from September 30, 2015) |
Note: Interest rates mentioned above are valid as of June 15, 2016. They are subject to change without prior intimation thus borrowers must check the rates with the bank before applying.
To be eligible for Oriental Bank of Commerce personal loan, certain age and income related criteria are to be met. These are listed below and are subject to change as per bank’s norms.
| Segment | Permanent and confirmed employee of Public Sector Undertaking (PSU) and Centre / State Govt. Department and other Government institutions like Universities/Colleges etc. Permanent employee of Corporates and other reputed non-government organizations/institutions including college/schools etc. (All these employees are required to have existing OBC bank accounts to their name) |
| Age | Above 21 years of age NOTE – This is the standard age eligibility across almost all banks in India For pensioners, maximum age is 68 years |
| Job Continuity | Should have a job and should have worked with the current employer for at least 3 years |
| Maximum Loan Amount | Up to 15 times the net take home salary, maximum of Rs.5 lacs For pensioners, the maximum loan amount is Rs.2 lacs |
Calculation of your personal loan EMI is now as easy as just a few clicks of your computer’s mouse. The Online Personal Loan EMI Calculator tool featured on the BankBazaar.com website helps you find out the exact monthly payment that you need to make in order to pay off your Oriental Bank of Commerce Personal loan. The tool takes in the loan amount, loan tenure and the rate of interest as input and calculates your monthly EMI. This helps a customer in planning out his/her monthly expenses better. This tool also helps customers who are planning to avail a personal loan but are not sure whether they would be able to incorporate the EMI expense in their monthly budget. A higher than expected EMI can let users review their loan amount and tenure and adjust them suitably to reach the most-appropriate and viable EMI.
What is the maximum loan amount that can be disbursed as a personal loan from the Oriental Bank of Commerce?
The maximum loan amount that can be disbursed depends on the applicant’s salary. For applicants who do not hold an account with the bank, up to 15 times the annual salary (not more than Rs.1,50,000 in total) can be sanctioned. But, for applicants who’ve maintained a salary account with the bank for at least 6 months, up to 20 times the monthly salary can be sanctioned (maximum loan amount of Rs.3,00,000
Are there any guarantors, security, or collateral required to take out a personal loan from OBC?
Depending on the loan amount, eligibility of the applicant, etc. a guarantor could be required. The Oriental Bank of Commerce requires the guarantor to be a co-employee of the applicant, and the same co-employee cannot stand as guarantor for more than two accounts.
Is there any penalty interest or penalties on pre-payment?
Penal interest of 2% becomes chargeable in addition to the outstanding loan amount for the period in which repayments were not being made as per the loan agreement. Prepayment does not carry any additional charges or penalties.
Is there any fee that has to be paid up front while taking an OBC personal loan?
A processing fee of 0.50% of the loan amount (subject to a minimum of Rs.500) + service tax has to be paid at the time of taking the loan.
What is the maximum repayment period for personal loans from Oriental Bank of Commerce?
Depending on the applicant’s eligibility, loans are disbursed for tenures of up to 60 months.
Is there a minimum monthly income requirement for loans from the OBC?
Yes, any applicant is required to have a minimum net monthly salary of Rs.6,000 for a personal loan from OBC.
What are the documents required for OBC personal loan?
A duly filled out and application form with the necessary signatures and a photograph will be required, along with identity proof in the form of an official document that verifies the identity and photograph of the applicant – could be driving license, passport, voter ID, etc.
What is the interest rate for OBC personal loan?
The current floating interest rate is 11.20% to 12.95%.
Can the loan be used for speculative purposes?
Oriental Bank of Commerce does not sanction loans of any amount for speculative purposes under the personal loan category.
For what purpose can a personal loan be taken from Oriental Bank of Commerce?
Emergency expenses and financial requirements can be met with Personal loans from Oriental Bank/ of Commerce (OBC), at times like:
- When medical emergencies result in financial requirements.
- To meet travel expenses.
- When the purchase of jewellery, consumer durables, etc. becomes necessary.
- To meet education expenses, etc.
*Please note that all amounts, tenures, repayment requirements, time frames, interest rates, other rates, charges, fees, ceilings, requirements, criteria, features, benefits, exclusions, calculations, ratios, ratings, terms and conditions mentioned above are as of February, 2016, and are subject to change at any time. All banks / NBFCs / insurance providers / financial service providers / companies, etc. mentioned above retain all rights to modify, replace, or add to or subtract from any of the above, in any way, at any time, and at their own discretion. You are requested to reconfirm the same with your chosen bank / company / NBFC / insurance provider / financial service provider, etc. before making any financial commitments.
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