IOB Personal Loan Details
|Indian Overseas Bank (IOB) Personal Loan Details Updated on
||Rs. 25,000 to Rs. 15 lakhs
||Up to 60 months
||8.55% to 12.05%
Indian Overseas Bank (IOB) Personal Loan is suitable for financial needs such as the purchase of consumer durables, coaching fees, career dreams, skill development, high-net-worth individuals, and more. You can borrow as little as Rs. 25,000 depending on the loan scheme you opt for. The eligibility criteria are based on the monthly income, age, employment, credit score, repayment capacity, and other factors. The interest rates are either linked to Repo Rate or MCLR.
In this post, we will discuss IOB Personal Loan features, types, scheme details, eligibility, security, documents, repayment, interest rates, and other terms and conditions.
Features and Types of IOB Personal Loans
Indian Overseas Bank has several types of personal loan schemes. These are directed to meet small to big financial requirements of various nature. If you want to follow your dream, career, hobby, purchase consumer durables, pay for coaching fees, etc, you can get funds from the bank within no time.
Here are some of the personal loan IOB schemes that you must know. Also, we will discuss IOB personal loan eligibility criteria, loan amount, purpose, and other details for each of the below-mentioned schemes:
1. IOB Clean Loan
Here are the features of the Indian Overseas Bank Clean Loan:
- Purpose and Loan Amount: You can take this loan for any financial or social purpose. You can avail up to Rs. 15 lakhs or ten times of your salary, whichever is lower. This is true in case if your employer deducts the EMI from the salary. And then the employer remits the same to the bank, or the monthly salary is credited in the account of the borrower at the loan granting branch.
The loan amount for LIC agents is up to Rs. 10 lakhs or ten times their average monthly commission, whichever is lower. For others, the loan amount is Rs. 1 lakh or 5 times the salary, whichever is lower.
- Eligibility: Those eligible to apply for the loan are employees in the reputed private firms, enterprises, companies, Public Sector Undertakings, Government, etc. After the EMI deduction, the take-home pay must be above 50% of the gross income. Subject to conditions, even LIC agents can apply for this facility.
- Security: Personal guarantee from two third parties, whose salary must be at least that of the borrower.
- Repayment: If the loan is for 5 months salary, then the tenure is up to 36 months. The tenure is up to 60 months if the loan is for 10 months' salary.
- Required Documents: Loan application, undertaking letter from the employer, salary certificate of the applicant and guarantor, KYC papers.
- Terms and Conditions: The employees must have an IOB Savings account in the branch that provides the loan. Also, the salary of the borrower must go to his/her IOB savings account at the branch which sanctions the loan. The employer must provide an Undertaking letter. This letter must consent to deduction of loan installment every month from the employer and remit to the bank. The employer must also give an undertaking to recover the dues in case of the employee’s death, resignation, and retirement as a terminal benefit.
2. IOB Royal
You can take this IOB personal loan for social and economic-financial reasons. The tenure is 12 months to 84 months. The loan amount is up to Rs. 15 lakhs. To apply for the loan, you have to be at least 25 years of age. The minimum income required is Rs. 75,000. There is no need to submit collateral to avail of the loan. Also, there is no margin and requirement for a guarantee.
3. IOB Passion
Here are the features of the Indian Overseas Bank Passion Loan:
- Purpose and Loan Amount: You can avail of this IOB personal loan to purchase basic materials to follow your passion. So, you can take funds to purchase things such as music instruments, sports kits, painting materials, and even arrange payment for coaching fees, etc. You can get up to 90% of the item’s cost, as well as the coaching fee amount. The loan amount is up to Rs. 3 lakhs.
- Eligibility: In Category A, any person with proven skills in fields such as music, paints, arts, sports, etc, who have taken up the skill as a career, and requires financial assistance to improve the skill or excel in it, can apply for the loan. The age limit of the applicant is between 10-25 years. In Category B, any person who wishes to follow a skill as a hobby can apply for a loan. The age limit of the borrower, in this case, is 25-50 years.
- Security: A suitable guarantee by third-party, collateral security, or hypothecation on purchase of items from the funds.
- Repayment: The tenure is up to 60 months without a holiday period. There are no prepayment charges.
4. Loan for Consumer Durables
Here are the features of Indian Overseas Bank personal loan for consumer durables:
- Purpose and Loan Amount: This personal loan is for the purchase of consumer durables such as wooden and metal furniture, electrical goods, and electronics, etc. The loan amount you can get is up to 90% of the item’s cost or ten times your gross salary, whichever is lower. The maximum loan amount is Rs. 5 lakhs.
- Eligibility: The maximum age limit of the borrower is 60 years. The applicant’s regular income must be above Rs. 5,000.
- Security: A suitable third-party guarantee or hypothecation of items purchased from the loan amount.
- Repayment: There are no prepayment charges. There is no holiday period, and the maximum tenure is 60 months.
5. IOB Special Personal Loan HNI VIP
Here are the features of this IOB personal loan:
- Purpose and Loan Amount: With the funds, you can purchase household goods and items. You can get finance of up to 90% of the item’s cost or up to Rs. 25 lakhs, whichever is lower.
- Eligibility: Any individual whose regular income is over Rs. 75,000 can apply for this loan. Also, the applicant must have served at least 2 years at the current employment company. The age of the borrower should be between 25 years and 60 years (at the loan maturity’s time).
- Security: Hypothecation of items purchased with the loan is mandatory for a loan up to Rs. 15 lakhs. For a loan over Rs. 15 lakhs, you will have to submit collateral with hypothecation of purchased items using the loan, or third-party guarantee.
- Repayment: No prepayment charges apply. The tenure is between 12 months to 72 months.
6. Loan for Career Dreams
Here are the IOB personal loan features to fulfill the requirements of your career dreams:
Purpose and Loan Amount: The funding is for financing tuition or coaching fee of reputed institutions in India. The loan is to prepare for entrance exams for professional courses such as medicine, business management, engineering, chartered accountancy, etc. Or, the loan is also available for civil services examinations such as IPS/IFS/IAS, etc. You can even request a loan for career and skill development courses such as SSI, SAS, SPSS, NIIT, SAP, APTECH, etc.
The loan amount is between Rs. 25,000 and Rs. 2 lakhs. The margin for funding is 25% for immovable property, 5% of the coaching/tuition fee according to the institution’s fee structure, 10% of the movable assets.
- Eligibility: Whoever wishes to fulfill the above-mentioned goals, can apply for a personal loan. But the institute in question must be registered and reputed. The bank will lay down registration requirements depending on the training, course, and government guidelines. Also, the institution must have been in operation successfully for the last two years.
- Security: No collateral is required if the applicant’s salary is routed through the Indian Overseas Bank. However, a third-party guarantee is necessary. If the pension or salary does not get routed through IOB, then security such as LIC policy, NSC, etc are required. Other forms of collateral are Kisan Vikas Patra, Deposits, immovable property, etc. There is no need for a third-party guarantee in such cases.
- Repayment: The tenure is up to 3 years with no moratorium. The repayment period for borrowers, who draw a salary, will not exceed the person’s retirement age.
- Terms and Conditions: The applicant must be a mother/father/legal guardian/spouse of the aspirant. The loan is extendable to the tuition fees of the daughter/son/spouse. The individual taking the IOB personal loan must have a regular and verifiable income and a good repayment capacity. The person can also use the funds for himself/herself if he/she is a working professional and wants to pursue higher studies.
Indian Overseas Bank Personal Loan Interest Rates
The Repo Rate is 4.40%. The mark-up is 2.85%. The one-year MCLR rate is 7.45%. For retail loans, the RLLR is 6.85% and the MCLR rate is 7.45%. Based on this information, below are the IOB Personal Loan interest rates:
- IOB Clean Loan interest rate is RLLR based with the spread of 5.20%, so the rate is 12.05%
- IOB Royal Loan interest rate is RLLR based with the spread of 4.45% (tenure less than 4 years) and 5.20% (tenure over 4 years), so the interest is 11.30% and 12.05%, respectively
- IOB Passion Loan interest rate is MCLR based with the spread of 2.75%, so the rate is 10.30%
- IOB Personal Loan interest rate for consumer durables/special loans for high-net-worth individuals is MCLR based. The spread is 3.25%, so the rate is 10.80%
- IOB Career Dream Loan interest rate is RLLR based with a spread of 3.45% (with collateral) and 3.95% (without collateral). So, the rates are 10.30% and 10.80%, respectively
- IOB Skill Loan to hone skills for hobby and career has an interest rate based on RLLR, with a spread of 1.70%. So, the rate of interest is 8.55%