Overview
Whether you are a Salaried-Employee, a Self-Employed Professional, or a Self-Employed Businessman, Indian Banks offers you funds as high as Rs. 6 Lacs within a span of 4 to 7 days of approval. The Processing fees charged by Bank are 0.51% of the loan amount or a maximum of Rs. 510 and charges Rs. 255 for Pensioners, it charges Zero to up to Rs. 255. The Interest Rate charged by Indian Bank is ranging from 10.65% to up to 13.20% of the loan amount and the tenure to repay your loan amount is 12 months to up to a maximum of 60 months ( 1 Year to up to a maximum of 5 years).
There are various schemes under which you can avail loan such as ‘’Indian Bank Clear Loan, Indian Bank Pension Loan’’ etc. The interest rate charged by the Indian Bank Clear Loan Scheme for salaried ranges from 10.65% to up to a maximum of 11.25% per annum and in the case of the Indian Bank Pension Loan Scheme, the interest rate charged by the Bank ranges from 12.20% to up to a maximum of 13.20% per annum. No additional fees will be charged if you want to repay your loan amount before its tenure has been completed.
Indian Bank is a good fit for you if?
Government Employees
Availing loan from Indian Bank could be a good fit for you if you are a government employee who needs a personal loan from Rs. 50,000 to as high as Rs. 1 Lacs since the Interest rate is quite low with 10.65% to up to 11.25% per annum as compared to other competing banks and financial institutions such as Federal Bank, Canara Bank, and Bandhan Bank charging interest rate starting from 10.90% to up to maximum of 18.75% per annum.
Indian Bank Personal Loan at a glance
| Annual Interest Rate | 10.65% – 13.20% per annum |
| Loan Term | 12 Months – 60 Months |
| Loan Amount | Up to Rs. 6 Lacs |
| Time of Funding | Within 4 to 7 days |
| Pre-Closure Charges | Nil |
Indian Bank provides personal loan up to Rs. 6 Lacs within 4 to 7 days of approval and the tenure to repay your loan is from 12 months to up to 60 months which is quite a long span of time but at the same time you must keep in mind that a loan with a longer terms means high charges, you don’t want to end up taking a loan which you keep paying for many years as the interest rate charged by the bank is ranging from 10.65% to up to 13.20% of the loan amount.
Here, the Pre-Closure charges are Nil as compared to other competing banks or financial institutions such as Federal Bank which charges Prepayment fees of up to 2% of the outstanding amount.
Why Choose Indian Bank?
Low Processing Charges
Indian Bank could be a good alternative for you like the processing fees charged by this bank are up to a maximum of Rs. 255 for pensioners and 0.51% of the loan amount for salaried-employee with a maximum of Rs. 510 which is quite low as compared to other banks such as ICICI Bank which charges up to 2% of the loan amount.
Zero Processing Charges for Pensioner Loan of up to Rs. 25,000
If you are a pensioner who needs funds up to a maximum of Rs. 25,000 to fulfill his personal financial goals, then you can avail your loan from Indian Bank as here, no processing fee is charged on pensioners who want funds up to Rs. 25,000.
What to watch out for?
No Pension Loan for CRS retirees and EPF Pensioners
If you are a CRS retiree or an EPF pensioner then you must know that Indian Bank does not offer any pension loan for Compulsory Retirement Scheme Retirees (CRS Retirees) and Employee Provident Fund Pensioners (EPF Pensioners).
Compare Indian Bank Personal Loans to Other Banks
| Bank Name | Indian Bank | Federal Bank | Canara Bank |
| APR | 10.65% – 13.20% | 11.49% – 14.49% | 10.90% – 13.90% |
| Loan Term | 12 Months – 60 Months | 12 Months – 48 Months | 12 Months – 72 Months |
| Maximum Lending Amount | Rs. 6 Lacs | Rs. 10 Lacs | Rs. 5 Lacs |
| Processing Fee | 0.51% of the loan amount Max Rs. 510 Zero to Rs. 255 for Pensioners | 0.50% of the loan amount Min Rs. 500 | Zero to up to Rs. 5,000 |
| Time to Funding | Within 2 days | Within 7 days | Within 7 days |
| Pre-Closure Fee | Nil | 2% of the outstanding amount | Nil |
Indian Bank lends up to a maximum of Rs. 6 Lacs within 4 to 7 days of approval while Federal Bank lends up to a maximum of Rs. 10 Lacs within 7 days of approval and in case of Canara Bank, the maximum amount it can lend is up to Rs. 3 Lacs and 5 Lacs in case of Pensioners. The Processing fees charged by Indian bank is up to 0.51% of the loan amount or a maximum of Rs. 510 and Zero to Rs. 255 for pensioners, while in the case of Federal Bank, the processing charges are 0.50% of the loan amount or minimum Rs. 500 and Canara bank charges Zero to up to a maximum of Rs. 5,000.
The typical APR Charged by Indian Bank is ranging between 10.65% to up to a maximum of 13.20%, 11.49% to up to a maximum of Rs. 14.49% while in the case of Canara Bank, the typical APR ranges between 10.90% to up to a maximum of 13.90%. The tenure to repay your loan is ranging from 12 months to up to 60 months, 12 months to up to 48 months in the case of Federal Bank, and 12 months to up to a maximum of 72 months in the case of Canara Bank. There are no Pre Closure fees charged by Indian Bank.
Indian Bank Personal Loan Eligibility Criteria
| Pensioner’s Age | 75 to 78 Years |
| Family Pensioner’s Age | 70 to 73 Years |
| Minimum Work Experience for Salaried | 3 Years |
- The minimum age of the regular pensioner should not be less than 75 years at the time of loan application.
- The maximum age of the regular pensioner should not be more than 78 years at the time of loan maturity.
- The minimum age of the family pensioner should not be less than 70 years at the time of loan application.
- The maximum age of the family pensioner should not be more than 73 years at the time of loan maturity.
- Salaried applicants should have a minimum work experience of 3 years in the current organization.
Indian Bank Personal Loans Schemes
IB Clean Loan (Personal Loan for Salaried)
Indian Bank provides personal loans for permanent Government employees including Public Sector Undertakings and Government Boards, Employees of Reputed Companies and Corporate Industrial Establishments, etc. The personal loan equals 5 times of gross monthly salary or a maximum of Rs. 50,000 for salary account holders. The loan amount equals 7 times of gross monthly salary or a maximum of Rs. 1 Lacs for applicants who have provided an undertaking from their employer along with a check-off facility.
The interest rate equals 10.65% if the applicant’s loan is availed under the Check-off facility and the employer’s undertaking is available. The interest rate equals 11.25% of the applicant has Indian Bank Salary Account. The processing charges are equal to 0.51% of the loan amount or a maximum of Rs. 510 with the tenure to repay the loan amount ranging from 12 months to up to 36 months.
Documents
- Salary Certificate for last 6 months
- IT returns/Form 16 for 3 years
- Bank Account statement for last 6 months
- Post-dated cheques.
- Documented authorization to deduct EMI from the saving account of the employee, where salary is disbursing through Indian Bank.
- An undertaking from the employer stating that he/she will deduct the EMIs from employee salary and submit to the bank directly, where salary isn’t disbursing through Indian Bank.
- If the applicant is unable to provide either authorization to deduct salary from account or employer sponsorship, then he/she must provide the following documents for third-party guarantee.
IB Pension Loan
Indian Bank provided a scheme named ‘’INDIAN BANK PENSION LOAN’’ under which any pensioner either government pensioner, family pensioners, or re-employed pensioners including retired Indian Bank Employees (both under Voluntary retirement scheme and Superannuation) can avail funds. A regular pensioner can borrow equals to 15 months pension or a maximum of Rs. 6 Lacs, while a Family Pensioner can borrow equals to 12 months pension or a maximum of Rs. 2 Lacs.
There is no processing fee charged by Indian Bank for availing personal loan up to Rs. 25,000 while processing charges equal to Rs. 255 for loans above Rs. 25,000. The interest rate equals 12.20% per annum for pensioners availing loan for 12 months while for the pensioners who are availing loan for more than 12 months, the interest rate charged by the bank will be 12.95% per annum.
If your pension is being credited into Indian Bank Branch, then Indian Bank would retail the pensioner’s portion of PPO with documents. The pensioner should provide an irrevocable undertaking that he/she will not shift pension credited accounts to other banks during the loan repayment period. If the pension is being disbursed as well as credit from Indian Bank Branch, a Xerox copy of the pensioner’s half is to be kept with the documents.
Documents
- Copy of pensioner’s half with documents to be kept where the pension is disbursing as well as credited through Indian Bank.
- Authorization to deduct the EMI from Pensioner’s PPO portion where the pension is not disbursing but only being credited through Indian Bank.
- Documents for a Family pensioner
- Loan Application along with KYC documents and passport size photograph.
- Processing Fee Cheque
Indian Bank Personal Loan Rate of Interest
| Personal Loan | Applicable Interest Rate |
| IB Clean Loan | 10.65% – 11.25% per annum |
| IB Pension Loan | 12.20% – 13.20% per annum |
The applicable Interest Rate charged by Indian Bank on Personal loans is different in different categories in the case of Indian Bank Clear Loan, the Interest Rate charged by the bank is ranging from 10.65% to up to 11.25% per annum, and in the case of Indian Bank Personal Loan, The applicable Interest Rate Charged by the bank ranging from 12.20% to up to maximum of 13.20% per annum.
Indian Bank Personal Loans Fees & Charges
| Type of Charges | Applicable Charge |
| Processing Charges | For Salaried: 0.51% of the loan amount or a maximum of Rs. 510 For Pensioners: Zero for loans up to Rs. 25,000 Rs. 255 for loans above Rs. 25,000 |
| Prepayment Charges | Nil |
| Penal Interest | 2% per month of the overdue amount |
The processing fees charged by Indian Bank are different for Salaried and Pensioners. In the case of Salaried-Employed applicants, the Processing Fees charged by the bank is 0.51% of the loan amount or a maximum of Rs. 510 and in the case of Pensioners, there is no processing fee for applicants who are availing loan up to a maximum of Rs. 25,000 and the Penal charges are 2% of the overdue amount. There are no Foreclosure charges charged by the bank means you can prepay your loan amount whenever you have funds which is a good thing as compared to other competing banks or financial institutions which charges a high amount of fees as in the case of Federal Bank the applicable interest rate charged by the bank is 2% of the outstanding amount, and in case of ICICI Bank, the interest rate charged by Bank is quite high with 5% per annum on the principal outstanding amount.
After I Applied?
Check Loan Status through Customer Care
- Dial 1800-425-00000 / 1800-425-4422
- For Hindi Press 1, For English Press 2, For Tamil Press 3, For Telegu Press 4, For Canada Press 5, For Malayalam Press 6
- Wait for the Customer Care Executive to connect your call.
FAQs
How do I connect with Indian Bank Personal Loan Customer Care?
You can call on these numbers to talk with customer care executives phone number on their contact number 040-28134300 / 1800-4250-0000 (Toll-free) or you can email them at indmail@indianbank.co.in.
What is the current MCLR rate applicable on Indian Bank personal loans?
Currently, a one-year MCLR rate equal to 8.60% is applicable on Indian Bank personal loans.
Do I have to provide any margin money in order to avail of the personal loan?
No, you don’t’ have to provide any marginal money in order to avail a personal loan.
What are the requirements for security/guarantee that I have to provide to avail Personal Loan from Indian Bank?
Security / Guarantee requirements for Clean Loans are required as follows –
- Authorization to debit the EMI from saving account, where salary is disbursing through Indian Bank.
- In the case where salary is not disbursing through Indian Bank, sponsorship from the Employer is required. Employer Sponsorship means an undertaking from the employer stating that the EMI of the availed loan by the employee will be directly debited to the bank from his/her monthly salary.
- If the applicant neither has a salary account with Indian Bank nor provides employer sponsorship, then a third-party guarantee and/or Encashable collateral security along with Post-dated cheques.
Security / Guarantee requirements for Pension Loan are as follows –
- A guarantee of spouse eligible for family pension. In case a spouse is not available, a suitable guarantee from a legal heir or family member or a third party guarantee would be necessary.
What is the ratio of EMI and Net take-home salary for IB Personal Loans?
In the case of Clean Loans, monthly deductions should not be more than 60% of the Gross Monthly salary. Hence, the net take-home pay of the employee should not be less than 40% of the Gross Salary after meeting all the deductions including the purposed EMI.