Indian Overseas Bank (IOB) Personal Loan Interest Rates

IOB Personal Loan Interest Rates 2018

Particulars	Salaried	Self-employed
Interest rate	12.70% to 15.25% p.a.	12.70% to 15.25% p.a.
Loan Amount (Min-Max)	Rs.50,000 to Rs.15 lakhs	Rs.50,000 to Rs.15 lakhs
Loan Tenure	1 to 5 years	1 to 5 years
Lowest EMI	Rs.2,260 per Rs.1 lakh (calculated at lowest interest rate and maximum loan tenure).	Rs.2,260 per Rs.1 lakh (calculated at lowest interest rate and maximum loan tenure).
Processing Fee	Rs.204 per Rs.1 lakh loan amount	Rs.204 per Rs.1 lakh loan amount
Age	21 to 58 years	21 to 58 years
Prepayment Charges	Nil (no prepayment prior to 12 EMIs)	Nil (no prepayment prior to 12 EMIs)
Pre-Closure Charges	2.23%	2.23%

How to calculate interest or EMI on Indian Overseas Bank Personal Loan?

EMI or Equated Monthly Instalment is the amount that the borrower has to pay to the bank each month towards the 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]

Factors affecting Indian Overseas Bank Personal Loan interest rates

Indian Overseas Bank personal loan interest rate varies for every applicant due to various factors. Some major factors affecting the interest rates are as follows:

• Loan tenure: If the loan tenure is shorter, the interest rate is higher compared to loans with a longer tenure.
• Repayment capacity: Indian Overseas Bank 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 40 percent of the borrower’s income. The bank also looks into his income, his assets and his creditworthiness before finalizing on an interest rate. The applicant’s CIBIL report is checked before the bank finalizes on giving the loan and before deciding the interest rate that is to be offered to him.
• Borrowing class: Young applicants will not be so stable at their job and would be shifting jobs until they find one that works best for them. Banks usually stay away from people who do not have a constant flow of income. Indian Overseas Bank offers a personal loan to government employees, public sector undertaking employees, private firm employees, LIC agents, confirmed permanent employees of a reputed organization, professional, self-employed and businessman.
• Relationship with the bank: Indian Overseas Bank offers special offers, interest rates and charges to those who have been having a long-term relationship with the bank. You may even get a discount on the processing charges or might get a reduced interest rate. The bank also gives special interest rates to the women borrower’s as well.

Key things about Indian Overseas Bank Personal Loan interest rates

Before applying for Indian Overseas Bank Personal Loan, you must know the following factors:

• Fixed interest rate is when a fixed interest rate is set on the personal loan and you will be required to pay a fixed amount of interest throughout the tenure.
• Floating interest rate will change as per the change in the bank’s base lending rate. The EMI will keep changing with the changing rate.
• To avail Indian Overseas Bank Personal Loan, you must have a guarantor or provide security.
• When the repo rate goes up, your interest rate will also go up.
• Indian Overseas Bank offers personal loans to government employees, public sector undertaking employees, private firm employees, LIC agents, confirmed permanent employees of a reputed organization, professional, self-employed and businessman.