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Personal Loan

Oriental Bank of Commerce is 7th largest public sector bank in India. With its takeover of Global Trust Bank in the year 2004, Oriental Bank of Commerce has become a very strong bank with almost 1000 branches all over India. With its product mix including   commercial banking, capital management, equity trading, NRI services etc, the bank has turned out to be a significant player in Indian Banking scenario.


Oriental Bank of Commerce Personal loan can be categorized as follows:
 

Personal Loans for Corporate Employees

Oriental Bank of Commerce provides personal loans to corporate employees for various personal reasons like to meet educational expenses, to meet marriage expenses, for buying consumer durables  and to meet the expenditures of family functions. Point to be noted here is that the reason of availing personal loan must not be for speculation.
 

  • Tenure of the Loan

    5 years, however the same is conditioned to the residual time of service.
     
  • Security Needed for the loan

In this case, one guarantee is needed. A colleague may stand as a personal guarantor, however one employee can only be the guarantor for a maximum of two accounts and not more than that.
 

  • Maximum Amount of Loan

One can get personal loan up to 15 times of Net Take home salary , however the maximum amount is restricted to Rs 5 lakhs only.
 

  • Penal Interest

A penal interest of 2% is charged which is over and above the normal lending interest rates on the outstanding amount for the time for which the amount is unpaid.
 

  • Prepayment Penalty

There is no charge on pre-closure of the loan.
 

  • Processing Fee

The processing fee is 0.50% of the loan amount, however the minimum amount is Rs 500/- plus service tax as applicable.

Personal Loans for Government/ Public Sector Unit (PSU) Employees

Oriental Bank of Commerce provides personal loans to Government and Public Sector Unit employees both working as well as pensioners for a range of personal reasons like schooling expenses, to meet up marriage expenses, for buying consumer durables or to meet the expenditures for family gathering. Important point to be noted here is that the purpose of taking personal loan should not be for speculation.
 

  • Tenure of the Loan

5 years, however the same is conditioned to the residual time of service.
 

  • Security Needed for the loan.

In this case, one guarantee is needed. A colleague may stand as a personal guarantor; however one employee can only be the guarantor for a maximum of two accounts and not more than that.
 

  • Maximum Amount of Loan

Individuals can avail personal loan up to 15 times of Net Take home salary; nonetheless the maximum amount is restricted to Rs 5 lakhs only.
 

  • Penal Interest

A penal interest of 2% is charged which is over and above the normal lending interest rates on the outstanding amount for the time for which the amount is not paid.
 

  • Prepayment Penalty

There is no charge on pre-closure of the loan.
 

  • Processing Fee

The processing fee is 0.50% of the loan amount, however the minimum amount is Rs 500/- plus service tax as applicable.

Personal Loans for Pensioners

Oriental Bank of Commerce provides personal loans to pensioners for a series of personal reasons like schooling expenses, for buying household furniture/ other household durables or to meet the expenditures for family gathering or to meet up marriage expenses. Important point to be noted here is that the purpose of taking personal loan should not be for speculation.
 

  • Tenure of the Loan

This type of loan can only be the term loan.
 

  • Security Needed for the loan.

Guarantee from spouse is needed. Cases where spouse is not available, any other family member or a third party guarantee is also acceptable.
 

  • Maximum Amount of Loan

Following is the loan amount for various categories:

 

  • For Family Pensioner:
     
    • Defense Personnel: 20 months in case of defence personnel, however the maximum limit is upto Rs 5 lakhs.
    • For other categories: 18 months of net family pension where the maximum limit up to Rs 5lakhs
       
  • For Pensioner:
     
    • Defense Personnel: 20 months in case of defence personnel, however the maximum limit is upto Rs 5 lakhs.
    • For other categories: 18 months of net family pension where the maximum limit up to Rs 5 lakhs
       
  • Penal Interest

A penal interest of 2% is charged which is over and above the normal lending interest rates on the outstanding amount for the time for which the amount is not paid.
 

  • Prepayment Penalty

There is no charge on pre-closure of the loan.
 

  • Processing Fee

The processing fee is 0.50% of the loan amount, however the minimum amount is Rs 500/- plus service tax as applicable.

Personal Loans for Home Loan Borrowers

Oriental Bank of Commerce provides personal loans to home loan borrowers for different reasons which definitely help the home loan borrowers to meet their requirements like the followings:
 

Home loan borrowers can buy various household items for their house like furnishing objects and kitchen appliances and equipments, computer, air conditioner, coolers, carpets, curtains etc.


Home loan borrowers can also avail personal loan if he / she wish to travel or for pilgrimage trip for himself / herself or for his/ her family members to meet the expenditures of the trip.


Home loan borrowers can also avail personal loan to buy life insurance under group protection plan to protect his/ her family.


Last but not the least, the purpose should be legal and valid and not for any speculation motive.
 

  • Tenure of the Loan

This type of loan is usually a overdraft account with reducing balance on a monthly basis.
 

  • Security Needed for the loan.

The borrower has to provide an irrecoverable and stamped security with a view to :
 

The borrower must not generate any other charge on the property while running of the personal loan.
 

The title deed will stay with the bank till the personal loan is fully repaid.
 

The bank can make an extension of the mortgage as and when the bank feels its necessary.
 

  • Maximum Amount of Loan

The minimum loan amount is Rs 1 lakh and the maximum amount is Rs 10 lakhs or 15% of the sanctioned limit under the Housing Loan whichever is less.
 

  • Penal Interest

A penal interest of 2% is charged which is over and above the normal lending interest rates on the outstanding amount for the time for which the amount is not paid.
 

  • Repayment

The repayment has to be made in 5 years or remaining period of home loan whichever is less.
 

  • Margin

The margin is 25% here.
 

  • Prepayment Penalty

There is no charge on pre-closure of the loan.
 

  • Processing Fee

The processing fee is 0.50% of the loan amount, however the minimum amount is Rs 500/- plus service tax as applicable.

Oriental Loan to Women

This is a loan which is specifically designed for women entrepreneurs to help them set up their own business. Thus, these loans are meant for business purposes granted only to women. The features of the loan include the following:
 

  • The loan allows women to set up their own business like beauty parlors, saloons, boutiques, etc. so as to encourage entrepreneurship among women and to make credit facilities easily available to them.
  • The loan can be issued either as term loans for purchasing business related equipment or as working capital loans for meeting the day to day working capital requirements of business.
  • Self-proprietorship concerns or women, partnership firms having women as partners or companies where women hold the majority shareholding can apply for the loan
  • Term loans are available up to a maximum limit of Rs.10 lakhs while Working Capital Loans are available up to a maximum limit of Rs.5 lakhs
  • The loan margin requirements are dictated by the amount of loan which is availed by individuals. Loans up to Rs.25, 000 do not require any margin. For loans above Rs.25, 000 and up to 2 lakhs, a 15% margin is required while for loans above Rs.2 lakhs, 25% margin is required. For purchasing a shop, the margin would be fixed at 25% of the loan irrespective of the loan amount availed.
  • In case of default of the repayment instalment, a penal interest of 2% above the loan interest rate would be charged on the defaulted amount and for the defaulted period.
  • There are two types of security requirements for the loan. One is the primary security which would be a charge over the movable or immovable assets purchased using the loan funds. the other would be a collateral security which would be tangible security equal to 100% of the loan value for loan amounts exceeding Rs.2 lakhs
  • There is a moratorium period allowed for the loan scheme which ranges from 3 months to 6 months and the repayment period of the loan is limited to 5 years to 7 years.
  • The loan can be foreclosed without any prepayment penalty payable.

Oriental Scheme for Loans to Professionals

This loan is also offered for the business use of professionals. The features are as follows:
 

  • Professionals who hold a degree or diploma or who are technically qualified or possesses skills in respective fields like practicing lawyers, architects, chartered accountants, chartered engineers, management consultants, journalists or software engineers can avail the loan. The loan is issued to individuals, joint borrowers, proprietorship firms, partnership firms and companies.
  • The maximum amount of loan available under the scheme is Rs.20 lakhs
  • The loan is issued as a term loan and a margin of 25% is retained by the bank on the amount of loan issued
  • A floating rate of interest is charged by the bank on the loan and women borrowers are given a concession of 0.25% on the rate of interest.
  • As security, the assets financed using the loan funds are hypothecated to the bank. Thereafter the security depends on the loan amount. For loans up to Rs.5 lakhs, a collateral security valuing 50% of the loan amount is required along with a personal guarantee of one person who can be the spouse. For loans above Rs.5 lakhs the security would be worth 75% of the loan amount and a personal guarantee of one person. If the loans are availed for buying business premises, no additional requirement of collateral would be insisted on.
  • A moratorium period is allowed under the scheme during which no repayment is required. This period is granted for a maximum of 6 months and the repayment tenure of the loan is calculated including the moratorium period granted. The total repayment period allowed is limited to a maximum of 84 months.
  • There is no prepayment penalty under the loan and the borrower can foreclose the loan account anytime by paying the outstanding balance.

Oriental Loan against Deposits

This is a type of personal loan which is issued against the security of deposits held in the name of the borrower. The features of the loan are mentioned below:
 

  • The loan is a multi-purpose loan which can be used for any personal or business uses provided the use is not speculative in nature
  •  Indian nationals who are aged 18 years and above or Hindu Undivided Families can avail the loan. Firms or companies can also avail this loan if they have deposits in their names.
  • The loan can be availed as an overdraft limit which is yearly renewable or as a term loan which is offered for a specified tenure
  • The maximum amount of loan available under the scheme is limited to Rs.5 crores
  • The deposit receipt offered by the bank would have to be pledged to the bank as security for availing the loan
  • The loan against deposits which are less than 6 months require a margin of 5%, while deposits aged 6 months and above require a margin of 10%. A 15% margin would be retained for loans against third party deposits.
  • There is no type of processing fee payable for processing of the loan. Moreover, there is also no type of prepayment penalty payable if the borrower prepays the loan earlier than the stipulated tenure.
  • The loan would be disbursed through the account of the borrower held with the bank
  • Self-deposits are those which are held in the borrower’s or co-borrower’s name while a third party deposits are those which are not in the name of the borrower or co-borrower. Deposits of other banks are not accepted for granting the loan.

Eligibility Criteria

(1) Personal Loans for Corporate Employees


Following categories of employees are eligible for this personal loan:-
 

  • A minimum total service of 3 years is needed which is inclusive of preceding employer’s as well.
  • Employees who are permanent in Corporates and in any other renowned non government organizations. Schools and Colleges are also included in this segment. All these employees should have their salary account with the bank.
  • The net salary has to be more than 30% of gross salary after the deduction of the EMI of the projected loan.
  • The Net Monthly Salary should be minimum Rs 10000/-.

(2) Personal Loans for Government/ Public Sector Unit (PSU) Employees


Following categories of employees are eligible for this personal loan:-
 

  • Employees who are permanent in Public Sector Unit and in Centre and State government. Government Institutions like schools and colleges are also included in this segment. All these employees should have their salary account with the bank.
  • The net salary has to be more than 30% of gross salary after the deduction of the EMI of the projected loan.
  • The Net Monthly Salary should be minimum Rs 10000/-.

(3) Age Criteria - Personal Loans for Pensioners
 

Below mentioned category of employees are eligible for this personal loan:-
 

  • The age of the Pensioner should be less than 75 years of age which should be as per the last repayment age.
  • For all other family pensioners which means where the pensioner has expired and spouse receives the pension, the age of the family pensioner should be less than 70 years which should be as per the last repayment age.
  • The net salary has to be more than 50% of gross salary after the deduction of the EMI of the projected loan.

(4) Personal Loans for Home Loan Borrowers
 

  • The housing loan should be standard, however the same should fulfill the below mentioned conditions :
    • The house construction should be completed post which the mortgage is to be made.
    • All documents should be clear and up to date.

Interest Rates

Loan Schemes

Interest Rates

Personal Loans for Corporate Employees

MCLR + 2.25% = 11.80%

Personal Loans for Government/ Public Sector Unit (PSU) Employees

MCLR + 3.25% = 12.80%

Personal Loans for Pensioners

MCLR + 1.50% = 11.05%

Personal Loans for Home Loan Borrowers

MCLR + 1.75% = 11.30%

Applying for the loan

The loan can be applied online using the Paisabazaar.com website which allows easy application of the loan through simple process. If the applicant fulfills the eligibility criteria which is initially checked at the time of loan application, the loan application process can be easily completed within a few minutes by providing the required information. The website also provides the applicants to check the potential instalment payouts for the loan through their online calculators.