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Personal Loan

Bank of India, a leading public sector bank in the country, offers personal loans suitable for various individual needs. Some of the key reasons why Bank of India personal loans are preferred by people from various walks of life include expenses related to vacations, wedding, home renovation/restoration, debt consolidation and much more.  


Key Features of Bank of India Personal Loan
 

  • Any sort of expenses that an individual might face whether it is a personal expense or a business related one; Bank of India personal Loan can be used for financing such expenses. In this regard, the loan granted by the bank is called a multi-purpose loan fulfilling all requirements.
  • These Bank of India personal loans are extended to all salaried individuals, Business professionals and individuals with a high net worth, individuals drawing regular pensions, or family pensioners drawing regular monthly pensions from the branch, staff members, retired employees ( not dismissed compulsorily retired) of the bank.
  • The maximum amount of loan to be sanctioned is Rs.10 lakhs. However, this depends upon the income of the individual.
  • The Bank of India offers personal loans at very attractive interest rates and easy repayment plan.
  • These loans are issued in the form of demand/term loans or a reducible or non-reducible overdraft facility.
  • However, for personal loans extended to confirmed employees of government institutions, central and state based organizations, PSU’S under reducible overdraft facility a maximum loan of Rs.1 lakh can be availed.
  • Depending upon the purpose of the loan, Bank of India offers personal loan in the form of unsecured loans (loans without collateral) and secured loans (loans with collateral).
  • Unsecured loans are extended for personal expenses such as a close family member’s wedding, Medical expenses towards treatment of a close family member, for education funding of self, spouse, children or a near relative, for renovations/repairs or extensions of existing house/flats, any other personal expenses of bona fide nature as approved by the bank.
  • Secured loans are extended for the purpose of refinancing (transfer of existing loans from other banks or financial institutions to Bank of India, Purchasing customer durables, computers, professional equipments’ etc.
  • The bank must be provided by legal mortgage/ equitable a charge of the commercial or residential property as primary security. Hypothecations on the assets have to be acquired by the banks to offer personal loans.
  • The bank requires collateral security in the form of pledge of gold, gold ornaments, NSC’S, Indira Vikas Patra, Bonds, LIC policies, Relief Bonds etc.

Amount of Loan: The maximum and minimum amount of Bank of India personal loans depends upon the nature of loan and the area of the applicant’s residence.
 

  1. In Case of Unsecured Loans: An applicant residing in metro, urban areas, rural and semi urban areas is eligible for a maximum loan of Rs.5 lakhs. The minimum amount of loan for an applicant who is living in urban and metro areas is set at Rs.10000. However, no such minimum amount requirement is set for applicants from rural or semi urban areas.
     

Area of residence

Maximum Loan Amount

Minimum Loan Amount

Metro and Urban Areas

Rs.5 lakhs

Rs.10000

Rural and Semi urban Areas

Rs.5 lakhs

NIL

 

  1. In Case of Secured Loans: An applicant residing in metro, urban areas, rural and semi urban areas is eligible for a maximum loan of Rs.10 lakhs. The minimum amount of loan for an applicant residing in metro and urban areas is set at Rs.10000. However, no such minimum amount requirements for personal loans are set for applicants from rural or semi urban areas.
     

Area of residence

Maximum Loan Amount

Minimum Loan Amount

Metro and Urban Areas

Rs.10 lakhs

Rs.10000

Rural and Semi urban Areas

Rs.10 lakhs

NIL


The amount of personal loan to be sanctioned also depends upon the income of the applicant.

  1. In case of Un-Secured Loans:
     

Business type

Loan amount eligibility

Salaried professionals

A salaried professional can apply for a personal loan amounting to 10 times of net take home pay.

Business professionals/individuals with high net worth

A business professional or individuals with high net worth is eligible for personal loan amounting to 50% of the applicant’s gross Annual Income as per last three years It returns.

 

  1. In Case of Secured Loans:
     

Business type

Loan amount eligibility

Salaried professionals

A salaried professional can apply for a personal loan amounting to 20 times of his gross pay.

Business professionals/individuals with high net worth

A business professional or individuals with high net worth is eligible for personal loan amounting to 100% of the applicant’s gross Annual Income as per last three years It returns.


However, before applying for this loan the applicant must make sure that his net take home pay after taking all the deductions should not be less than 40% of the applicant’s gross pay. Deductions include the applicant’s liabilities including EMI’s of existing overdue loans, if any, as well as the EMI of the applied loan.

Types of Bank of India Personal Loan

Bank of India Star Mitra Personal Loan: Bank of India Star Mitra Personal loan is a unique loan offered to all the physically challenged individuals. This loan is directed towards making a physically challenged individual independent.


Key Features of Star Personal Loan:
 

  • This Bank of India personal loan is issued to all salaried and self-employed professionals who are physically challenged, physically challenged minors (through their parents and legal guardians). However, the Bank of India personal loan cannot be advanced to middlemen and NGO’S.
  • This Bank of India personal loan is extended for the purchase of durable and sophisticated aids, and appliances that promote the individuals well-being on social and physical grounds.
  • This Bank of India personal loan is a secured loan issued in the form of demand/term loans.
  • The maximum amount of loan sanctioned under this scheme is kept at Rs.1 lakh.
  • The Bank of India personal loan amount eligibility depends upon the net take home pay.
  • A salaried professional’s income required for Bank of India personal loan is up to 10 times of his Net take home pay (NTHP).
  • A non-salaried self-employed professional can apply for a Bank of India personal loan amount up to 50% of the net annual income as per latest Income Tax Returns.
  • In case of extending loans to minors, the income of the parents or the legal guardian will be considered eligible for deciding the loan amount.
  • However, before applying for this Bank of India personal loan he should calculate EMI for Bank of India personal loan. For that the applicant must make sure that his net take home pay should not be less than 40% of the applicant’s gross pay. Deductions include the applicant’s liabilities including EMI’s of current loans, if any; and EMI of the applied loan.
  • The individual is required to pay a minimum margin of 10% for extending personal loans from Bank of India.
  • Repayment tenure for Bank of India personal loan: the Bank of India personal loan has to be paid back within a maximum period of 60 months from the completion of the month after the full disbursement or completion of three months after first disbursement (whichever is lower) i.e. the applicant has to pay off the entire loan by ways of 60 equated monthly installments immediately after the completion of the first month of the loan advancement or the completion of the third month, subject to the lower of the two tenures. However, minimum period of repayment is kept at 12 months i.e. the applicant can opt to pay off the entire loan by ways of 12 equated monthly installments.
  • Interest rate for personal loans: Bank of India personal loan interest rate is a fixed rate method and the interest rate is linked to the existing base rate on a monthly basis. Base rate is the lowest interest rate at which the bank can issue loans. The interest is compounded monthly on reducing balance basis. The current interest rate of the bank stands at 1% above the existing base rate. However, this is applicable only in the case of new loans.
  • The bank requires hypothecation rights on the equipment purchased from the funds issued by the bank as loan.
  • The bank does not provide insurance cover along with Bank of India personal loan. However, applicants as per their will may apply for the same at their expenses.
  • The bank does not levy any kind of processing charges on the loans it extends to physically challenged individual.

BOI Star Pensioner Loan Scheme:
 

  •  Bank of India personal loan eligibility or the targeted customers: The customers of this kind of loan are the regular pensioners or the family members who are drawing the regular pension money from the branch. The retired personals other than those who were expelled or terminated.
  • Types of Advances: The various types of pension loan schemes available through BOI are Term Loan/ Demand Loan /Overdraft (reducible on the basis of repayment schedule).
  • Types of Bank of India Personal Loan on offer: the bank has different criteria’s for different sets of pensioners each having a different features and characteristics.
     
  • Where PPO is held with the Government

    Where the pension is directly received at the branch from treasury or DPDO

     

    The regular pensioners and the family pensioners where the age of the borrower should not be above 75 years of age at the end of the repayment period are eligible for taking this loan. And the loan granted depends on the following criteria.

    Secured/unsecured loan

    The loan amount that the pensioner can borrow under this scheme is 15 times of his pension income, in the case of family pensioner the loan amount cannot exceed the amount of Rs.5lacs.

    Secured/unsecured loan

    Can be any times of the pension amount the pensioner is drawing it is totally depends upon the bank’s discretion to decide upon the loan amount but if the borrower is the family pensioner then the max. loan amount cannot exceed Rs.1.5lacs

    The pensioner who is above 75 years of age is only eligible to the maximum limit of Rs.1 lac of the pension loan.

     

    The borrower can be granted two loans under two accounts i.e. secured and unsecured under the scheme depending upon the terms and condition of the bank and the eligibility of the pensioner.

    The loan granted is only 3 times of the net pension( i.e. the amount credited to his S/B account less EMI for loans if any)maximum loan granted cannot exceed Rs.50000.

    The loan granted is 3 times of the net pension (i.e. the amount credited to the S/B account less EMI for loans if any) max. loan amount cannot exceed Rs.50000.

  • Net Take Home Pension: The in-hand pension of the pensioner after the deduction of   loan installment should be minimum 40% of the actual pension sanctioned for him.
     
  • Purpose of the Loan: The Purpose for which the Pension Loan scheme is taken are as follows:
     
  • Unsecured or clean Loan
     
  • This type of loan can be availed for meeting the expenses like that of wedding marriage or medical expenses, for education purposes or can be taken for the education of nearby relatives.
  • The Bank of India personal loan can be taken for the repairs/renovation or extension of the existing property, house or flat taken in consideration that the equitable mortgage charge over the property is not made in favor of the bank and the applicant has not raised loan against such property from any bank/FI/NBFC etc.
  • Can be taken for any kind of legitimate expenses.
     
  • Secured Loan:
  • This loan can be taken by the borrower for the repayment of the current home loan taken by him from other Banks/Fistic.
  • The loan can be taken for the purchase of customer durables, equipment related to profession, computers etc.
  • In case of the signature/unsecured loan the borrower has to submit the declaration to the bank stating that the loan taken by him from the bank is being utilized for the purpose as stated at time of borrowing.

    In case of secured loan the borrower needs to furnish all the bills, receipts and appropriate proofs for all the expenses incurred.
     

  • Repayment: the borrower has to repay Bank of India personal loan as per the guidelines given by the bank. The following are the repayment schemes which are available for the loans taken under the different categories:

     
  • For Clean/Unsecured loan
  • The maximum Bank of India personal loan EMI‘s allowed are only 36.The EMI’s starts from one month after the first disbursement of the loan. 60 EMI’s are allowed in some exceptional cases.

  • For Secured Loan
  • Maximum of 60 EMI’s are allowed, the repayment comes into existence after the first disbursement of the loan.

  • Processing and Handling charges: The following are the processing and handling charges taken by the bank for sanctioning the loan:
  • No processing charges are taken from senior citizens who are 60 years and above.
  • For others one time @2% of the loan amount, minimum charge is RS.500 whereas the maximum amount cannot exceed Rs.2000.
  • Stamp paper charges as actual and agreement charges as applicable.
  • BOI Star Holiday Loan Scheme:


Eligibility: This type of loan is available for the salaried employees, professionals, self-employed, people engaged in the business, individuals having high net worth, agriculturists, pensioners and staff members.


Types of personal loans: The Demand loan is available reducible as per the repayment schedule.


Quantum of Advance: There are different loan amount available for different category of people:
 

  • Maximum of Rs.2.00 lacs is available for Clean Loan.
  • Maximum of Rs.5.00 lacs is provided against the collateral security like TDR’s, NSCs, IVPs, LIC Policy (surrender value) etc. value of which should be at least equal to 50% of the loan amount.
  • Maximum of Rs.10.00 lacs is provided against the collateral security like TDR”s, NSCs, IVPs, LIC Policy (Surrender value) etc. value of which should be at least equal to 100% of the loan amount.
  • Pensioners get the loan under this scheme maximum for RS. 1.00 lac

Minimum size of the Loan:

At the urban and metro sectors the minimum amount of loan is Rs.10000/-


At the suburban sectors and rural sectors, the minimum value of the loan is not fixed.


Purpose:  The purpose for which this Bank of India personal loan is given are to meet the expenses like airfare, train and bus charges, expenses for accommodation and sightseeing for the purpose of pilgrimage, tours, excursions that are undertaken by the borrower, children, spouse, parents, close relatives, family members residing in India or abroad.


Margin: No specific margin is set. The Bank of India personal loan amount cannot exceed the proposed expenditure or the requirement.


Repayment:  Maximum of 24 EMI’s are allowed. The repayment comes into effect after the first disbursement of the loan. In some exceptional cases 36 EMI’s are allowed.

Bank of India Personal Loan Interest Rates

STAR PERSONAL LOAN SCHEME :
Particulars Rate of interest
Fully Secured 1 Year  MCLR + 4.50%
Clean/Unsecured 1 Year  MCLR + 5.50%
For Senior Citizens above 60 years for loans upto Rs.50,000/- 1 Year MCLR + 3.50% 
Financing Secured under tie-up arrangements 1 Year  MCLR + 4.50%

STAR PENSIONER LOAN SCHEME
New loans sanctioned after 09.1.2017
Fully Secured/Clean/Unsecured as per Star Pensioner Loan Scheme 1 Year MCLR +2.50%   


STAR HOLIDAY LOAN SCHEME
Particulars Rate of interest
 Fully Secured 1 Year  MCLR + 4.50%
Clean/Unsecured 1 Year  MCLR + 5.50%
For Senior Citizens aged 60 years & above for loans upto Rs.50,000/- 1 Year MCLR + 3.50% 
Financing Secured under tie-up arrangements 1 Year  MCLR + 4.50%

BOI STAR DOCTOR PLUS(RETAIL) SCHEME
 
Particulars Rate of interest
 Personal Loan  
Fully Secured 1 Year MCLR + 2.00% + BSS (0.30%)
Clean/Unsecured 1 Year MCLR + 3.00% + BSS (0.30%)
Vehicle Loan  
4 Wheelers:  
a. New Vehicle 1 Year MCLR +0.40% + BSS (0.30%)
b. Second hand vehicles 1 Year MCLR + 0.40% + BSS (0.30%)

Personal loans are unsecured and Bank of India offers these loans at a floating rate of interest i.e. the interest rate applicable to your personal loan is liable to be revised from time to time. AT present, the personal loan interest rate is linked to Bank of India’s MCLR (marginal cost of lending rate) plus a spread, which is applied by the bank on the basis of the individual applicant’s profile. Some key factors that can affect your personal loan interest rate include credit score, the loan principal amount, loan tenure etc. Currently, MCLR-based lending rates have caused a downward revision in personal loan interest rates; however, this trend may or may not continue in the future based on key market factors.


The Bank of India personal loan interest rates varies depending upon the nature of loan, sex of the applicant and the age group of the applicant.
 

  • In Case of unsecured loans: The Bank of India personal loan is issued at the rate of 13.90% % i.e. 5.50% above the existing MCLR. The bank offers a special concession of 0.50% on all personal loans it extends to women borrowers.  The bank issues personal loans at the rate of 11.90% i.e. 3.50% above the existing MCLR. The Bank of India personal loans are issued at the rate of 12.90% % i.e.4.50% above the existing MCLR for loans extended towards financing secured under tie up arrangement.
  • In Case of secured loans: The bank issues personal loan at the rate of 12.90% i.e. 4.50% above the existing MCLR. The bank offers a special concession of 0.50% on all personal loans it extends to women borrowers.

Repayment Tenure: The repayment tenure depends upon the nature of loan.
 

  • In case of unsecured loans, the Bank of India personal loan has to be paid back within a maximum period of 3 years from the completion of the month of the first disbursement i.e. the applicant has to pay off the entire loan by ways of 36 equated monthly installments immediately after the completion of the first month of the loan advancement. However, the bank on special cases may allow for the extension of the loan tenure to a maximum of 60 months.
  • In case of Secured Loans, , the loan has to be paid back within a maximum period of 5 years from the completion of the month of the first disbursement i.e. the applicant has to pay off the entire loan by ways of 60 equated monthly installments immediately after the completion of the first month of the loan advancement.

Fees and charges: The bank levies certain fees and charges. The list of the same is given below:
 

  • Processing charges: Processing charges varies depending upon the age group and current employment status of the applicants.

For normal loans extended to all individuals ex Fees and charges: The bank levies certain fees and charges. The list of the same is given below:
 

  • Processing charges: Processing charges varies depending upon the nature of the personal loan from Bank of India.

For normal Bank of India personal loan extended to all individuals except pensioners and senior citizens: The bank charges a onetime processing fee standing at the rate of 2% of the sanctioned loan amount, subject to a minimum of Rs.1000 and a maximum of Rs.10000.
 

For Loans extended to pensioners: : The bank charges a onetime processing fee standing at the rate of 2% of the sanctioned loan amount, subject to a minimum of Rs.500 and a maximum of Rs.2000.
 

For loans extended to senior citizens: The bank levies no processing charges on loans extended to senior citizens i.e. for applicants above the 60 years and above.

  • Other charges: The bank levies certain other charges such as documentation charge, advocate charges, valuer fee, CERSAI Registration charges. All these charges are made on actual basis. Inspection charges are also levied on a time to time basis.

Documentation

The documents required for obtaining this Bank of India personal loan is same as the documents required for obtaining personal loan with the bank. However, along with the basic documents, an applicant has to submit a few more documents supporting his physical condition and requirements. The list of the same is given below:
 

  • Doctor’s certificate stating the extent of the individual’s handicap and the need of the equipment.
  • Quotation/invoice with respect to the price of the equipment to be purchased
  • A stamped receipt of the purchase of the equipment has to be submitted to the bank by the applicant after the purchase has been done to meet the personal loan requirements.

Applying for a Bank of India Personal loan online

The Bank of India Personal Loan can be easily applied to by following the below mentioned easy online application steps because the bank allows online medium of application.


Visit us at Paisabazaar.com – on the home page click the ‘Personal Loans’ tab and provide the required details and apply for a Bank of India personal loan


The site would peruse the applicant’s personal details to match them with the eligibility criteria which are specified to be fulfilled for availing a Bank of India personal loan. If the details of the applicant match the bank’s predefined eligibility criteria, the Bank of India personal loan would be issued to the individual. Every field of the information asked is relevant in establishing the identity of the applicant and also his repayment capacity which can be ascertained from the nature of occupation the applicant is engaged in and the income that occupation enables him to generate.


The process of online application is fast, simple and secure. One needs not to worry about fraudulent practices as their respective details are kept safe in the website’s database. Since the online application reduces the need to visit the branch of the bank, it can be done from the comfort of the applicant’s home or office.

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