Overview
The Indian Overseas Bank is providing personal loans to the Govt. sector/private sector employees having salary accounts with the bank. The bank provides the loan amount up to a maximum of Rs.15 lac with a maximum loan repayment tenure of 36-84 months. The interest rate charged by the Indian Overseas Bank varies from 11.95%-13.70%.
The bank offers a 0.50% discount for females in case the loan is for the purchase of consumer durables. The guarantee is mandatory except if your monthly income is more than Rs.75,000.
Indian Overseas Bank is a good fit for you if?
If You have a salary account with the bank
Indian Overseas bank only offers personal loans for personal purposes to individuals having a salary account with the bank. While for the others the bank has a loan plan for the purchase of consumer durables only.
If You’re Looking for a loan amount up to 15 lac
Unlike most of the banks in the industry offer a low amount in the personal loan category, The Indian Overseas Bank is offering as high as Rs.15 lac. Oriental Bank of Commerce offers only Rs.10 lac as maximum borrowing as a personal loan and Corporation bank offers only Rs.3.5 lac at maximum.
If you are a LIC agent
Along with its salary account holders the Indian Overseas bank also offers personal loans for the LIC agents up to 10 times their monthly commission with a maximum cap of Rs.10 lac.
Indian Overseas Bank Personal Loan at a glance
| Annual Interest Rate | 11.95% – 13.70% per annum |
| Loan Term | 36 Months – 84 Months |
| Loan Amount | Upto Rs.15 lacs |
| Pre-Closure Charges | Nil |
Indian Overseas Bank provides personal loans with a variety of interest rates starting from 11.95%-13.70%. The interest rate is 11.95% if you want a loan for the purchase of consumer durables at 11.95%, and goes up to a maximum of 13.70% if you are taking a loan for other purposes. The repayment tenure of the loan ranges between 36-84 months as Indian Overseas Bank offers an 84-month repayment tenure only to the individuals earning above Rs.75,000 per month. For others, the maximum loan repayment tenure remains up to 60 months.
The maximum loan amount offered by the Indian Overseas Bank is Rs.15 lac, which is quite higher than its competitor Oriental Bank Of Commerce offering Rs.10 lac at maximum. The preclosure charges in case of early payment are Nil with Indian Overseas Bank.
Why Choose Indian Overseas Bank?
Longer Repayment Tenure up to 84 months
Indian Overseas Bank offers a longer repayment tenure of 84 months for the repayment of a personal loan in case the monthly income of a borrower is more than Rs.75,000. The repayment tenure in other cases is 60 months at maximum. The repayment tenure offered by the Indian Overseas Bank is high in comparison to some of the industry peers allowing a loan tenure of only 48 months.
Concession for females to buy consumer durables
The bank offers personal loans to buy consumer durables to the females with a special concession of 0.50% in interest rate.
What to watch out for?
Higher interest rate
Indian Overseas Bank charges an interest rate of 13.70% if you are taking a personal loan with a purpose other than buying consumer durables. This interest rate is a bit higher compared to the South Indian Bank charging 11.45%-11.65%. So the personal loan with Indian Overseas Bank is a bit expensive.
Guarantee required
Indian Overseas Bank requires two personal guarantees having at least a salary equal to the borrower in case the salary of the borrower is less than Rs.75,000 per month. Most of the banks like South Indian Bank and Bank Of Baroda do not ask for any guarantee for a personal loan.
Compare Indian Overseas Bank Personal Loans to Other Banks:
| Bank Name | Indian Overseas Bank | Oriental Bank Of Commerce | South Indian Bank |
| APR | 11.95% – 13.70% | 11% – 12.50% | 11.45% – 11.65% |
| Loan Term | Up to 36 – 84 months | Up to 60 months | Up to 12 to 60 months |
| Maximum Lending Amount | Up to Rs. 15 lacs | Up to Rs. 10 lacs | Up to Rs. 25 lacs |
| Processing Fee | 0.40%-0.75% of the loan amount | 0.50% of the loan amount Rs.500 min | 2% of the loan amount |
| Pre-Closure Fee | Nil | Nil | 2% to 4% of the outstanding amount |
The Indian Overseas Bank offers personal loans with a range of interest starting from 11.95% and going up to a maximum of 13.70%. The other peers in the industry like South Indian Bank offers a more competitive interest rate ranging between 11.45%-11.65%. The maximum loan tenure on personal loans can go up to 84 months if you have a monthly income of Rs.75,000 or more. The other two banks South Indian Bank and OBC offer maximum tenure of 60 months.
The maximum lending amount is up to Rs.15 lac at Indian Overseas Bank and Rs.10 lac at OBC, while South Indian Bank offers up to Rs.25 lac. The Indian Overseas Bank charges 0.40%-0.75% of the loan amount and 2%-4% of the loan amount is charged by the South Indian Bank.
Although Indian Overseas Bank does not charge for pre-closure of the loan; South Indian Bank charges 2%-4% of the loan amount for pre-closure of the loan.
Indian Overseas Bank Personal Loan Eligibility Criteria
| Minimum Age | 21 Years |
| Maximum Age | 65 Years |
- Applicant can be a resident Indian.
- The minimum age of the borrower should be at least 21 years at the time of loan application.
- The maximum age of the borrower should not exceed 65 years at the time of final repayment.
- Salaried govt. employees/Corporate employees/ LIC agents.
Indian Overseas Bank Personal Loans Schemes
IOB Clean Loan
Indian Overseas Bank offers a personal loan scheme to the salaried govt. employees, PSU employees, MNC employees, and the employees of companies/reputed Public and Private limited companies. The maximum loan amount allowed is 10 times of salary maximum of up to Rs.15 lac if the letter of undertaking from the employer is in place. For others 5 times of salary up to Rs.1 lac. For LIC agents 10 times their monthly commission up to Rs.10 lac maximum.
The eligibility terms for the Clean Loan include Take home salary of the borrower should be more than 50% of gross pay. Undertaking from employer to deduct the loan installment and remit the same to the bank. The borrower should have a salary account with the bank branch from where the loan is to be disbursed. A personal guarantee of two individuals having at least a monthly salary equal to the borrower is required.
The maximum loan tenure granted under this plan is 60 months for a loan of 10 times of salary and 36 months for a loan of 5 times of salary. The interest rate charged under this plan is 13.70% which is higher than the other two plans offered in the personal loan category by the bank. The processing fee is 0.50% for a loan up to Rs.5 lac and 0.75% for a loan above Rs.5 lac.
IOB Royal Loan
The Indian Overseas Bank offers a plan named IOB Royal for individuals earning more than Rs.75,000 per month. To finance the personal needs of these individuals bank offers them finance up to as high as Rs.15 lac with a long repayment tenure of 84 months.
In the IOB Royal plan bank does not ask for the security/collateral as required in the other two plans of the bank under personal loan categories.
The interest rate charged for the personal loan under this plan is 12.95% per annum for the loan up to 48 months and 13.70% if the repayment tenure exceeds 48 months. The bank also charges a processing fee of 0.40% up to a loan amount of Rs.5 lac and charges 0.50% of the loan amount if the loan amount exceeds Rs.5 lac.
IOB Personal Loan
The Indian Overseas Bank has a customized personal loan plan with the name “IOB Personal Loan” for the purchase of consumer durables like electronics, wooden/metal furniture, etc. The minimum income required to fetch this loan is only Rs.5000 per month. The maximum loan amount can be up to ten times of salary or 90% of the cost of the article purchased not exceeding Rs.5 lac.
In this plan, the borrower needs to arrange the 10% margin money for the purchase. The interest rate charged by the bank is 11.95% under this plan with 1% concession if 100% collateral security is provided and 0.50% concession for the females.
The maximum repayment tenure for the loan can be up to 60 months. The processing fee charged is 0.40% of the loan amount.
Documents required for Salaried applicants:
- KYC Documents
- Income proof
- Last 6 months salary slip.
- Form 16/ letter from employer to deduct the salary from borrower’s account and credit the same into the bank.
- Last two years ITR.
- Last 6 months bank statement.
- 3 passport photographs.
- Any other document which may be required from case to case.
Documents required for Self employed applicants:
- KYC Documents
- 3 passport photographs
- Income proof:
- Last three years ITR
- Last 6 months bank statement.
- Any other document which may be required from case to case.
Indian Overseas Bank Personal Loan Rate of Interest
| Personal Loan | Applicable Interest Rate |
| IOB Clean Loan | 13.70% per annum |
| IOB Royal | 12.95% – 13.70% per annum |
| IOB Personal Loan (Consumer Durables) | 11.95% per annum |
Indian Overseas Bank Personal Loans Fees & Charges
| Type of Charges | Applicable Charge |
| Processing Charges | 0.40% – 0.75%of the loan amount |
| Prepayment Charges | Nil |
The Indian Overseas Bank charges 0.40% – 0.75% of the loan amount as processing charges for the loan application process. Whereas the peer in the industry like Central Bank Of India charges a flat fee of Rs.500 per application. The foreclosure charges are nil.
FAQs
What If I want to pay my personal loan early?
You can do so, Indian Overseas Bank does not charge for the prepayment of the loan.
Is a guarantee of a third party mandatory?
3rd party guarantee is not mandatory in case you have a monthly income of more than Rs.75,000 and avails IOB Royal loan. In the case of Clean Loan of Indian Overseas Bank a personal guarantee of two individuals having salary equal to the borrower’s salary.
What is the maximum loan repayment tenure ?The maximum loan repayment tenure can be up to 84 months if your monthly salary is a minimum of Rs.75,000 and you avail of the Indian Overseas Bank IOB Royal plan. In other cases, the loan tenure can be up to 60 months.