Urban Money

Bank of India Personal Loan

Bank of India
4.5

Personal loans from Bank of India are available for loan amounts up to Rs 20 lakh starting at 11.25 percent p.a. Additionally, it provides customised personal loans to doctors for 10.75 percent pa and personal loans to pensioners for 10.25 percent pa.

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Interest Rate

Processing Fee

Rating

Loan Amount/Tenure

Bank of India Personal loan Interest Rate

Bank of India

12.15%

Up to 2%

4.5

Up to ₹10L

Tenure(Up to 5 Years)

Details

Features of Bank of India Personal Loan

Bank of India is one of the country’s leading commercial banks, with its headquarters in Mumbai. It has established a massive reputation in the Indian banking sector by providing exceptional services through its 5100 branches all over the country. It has carved itself a niche by providing its customers with a wide range of products and services. Bank of India also offers attractive personal loan offers with interest rates starting at 12.75% p.a. for loans up to Rs. 20 lakhs.

Given below are some of the features of the Bank of India’s personal loan product that makes it one of the most attractive financial products in the market:

  • The maximum loan amount offered to an applicant depends on their income. The ideal applicant can avail of loan amounts up to Rs. 10 lakhs.
  • This loan is offered as a term loan, demand loan, or overdraft facility. This can be reduced in accordance with the repayment schedule.
  • Confirmed state or central government employees are eligible for an overdraft facility up to a maximum amount of Rs. 1 lakh.
  • You can opt for a secured or unsecured loan from the Bank of India.
  • Bank of India provides unsecured loans for fulfilling wedding expenditures, education expenses, home renovation costs, medical expenses, and other personal expenses.
  • Bank of India secured loans are provided to refinance loans from other banks and financial institutions, home extension, home renovation, buying electronic appliances and gadgets, funding self-expenditure, etc.

Eligibility Criteria for Bank of India Personal Loan

Given below are the eligibility criteria that an applicant will be required to fulfil to obtain a personal loan from Bank of India:

  • The applicant should be an Indian citizen
  • Only applicants over the age of 18 years are eligible to obtain this loan
  • Salaried employees, professionals, high net worth individuals, regular pensioners, family pensioners, retired employees and current staff members of Bank of India are eligible to obtain this loan
  • The ideal applicant should have a steady source of income and a credit score of more than 750.

Bank of India Personal Loan Fees & Charges 

Given below are the processing fees and charges for a personal loan from Bank of India:

Type of Personal Loan Amount
Star Personal Loan
  • Salaried Applicants:  0.50% of loan
Amount subject to a minimum of Rs. 500 and a maximum of Rs. 2,500
  • Non-Salaried Applicants: 1% of loan amount subject to a minimum of Rs. 750 and a maximum of Rs. 5,000
  • There are no processing charges for applicants aged over 60 years
Star Pensioner Loan Scheme
  • Up to 0.50% of the approved loan amount subject to a minimum of Rs. 250 and maximum of Rs. 1,000
  • There are no processing charges for applicants over the age of 60

Bank of India Personal Loan Interest Rates

The table given below shows the Bank of India Personal Loan interest rates:

Loan Type Interest Rate
Unsecured Loans 13.75% p.a.
Loans Secured Under Tie-Up Arrangements 12.75% p.a.
Loans for Senior Citizens Over Rs. 50,000 11.75% p.a.
Pensioners 10.75% p.a.
BOI Star Personal Loan- Doctor Plus 11.25% p.a.

Factors Affecting Bank of India Personal Loan Interest Rates

Even though Bank of India offers personal loans starting at 12.75% per annum, the interest rate offered to applicants vary according to several factors. Below are some factors affecting the interest rates:

  • Applicant’s Income: If the applicant has a higher income, the higher the chances of personal loan approval from the Bank of India. The applicant’s income is considered to determine the applicant's repayment ability.
  • Repayment History: The credit profile reflects the applicant's poor repayment track record. If the applicant displays a less-than-satisfactory credit report, the chances of approval go down. The ideal applicant should have a credit score of over 750.
  • Applicant’s Age: The applicant's age is also considered while processing the personal loan application. If the applicant is young and has a higher income, there are more chances of approval. If the applicant is closer to retirement age, then the applicant will be granted higher interest rates. This is because banks and NBFCs prefer the loan to be closed before the applicant is 70 years old.
  • Loan Amount: The approved loan amount also plays a major role in determining the interest rate for the loan. The loan amount is assessed in comparison with the income of the applicant. If the applicant’s income is lower than the approved loan amount, they will be granted a higher loan amount.

Documents Required for Bank of India Personal Loan

The applicant is required to submit a set of identification and financial documents to obtain a personal loan from Bank of India. These documents vary according to the type of loan scheme that the applicant opts for. However, given below are some of the common documents that you will be required to submit:

  • Identification Proof: PAN (mandatory), Aadhaar, Passport, Driving License, Voter ID
  • Address Proof: Electricity bill, ration card, bank statement, telephone bill, Aadhaar Card, PAN Card, Driving License, etc.
  • Income Proof: Salary slips, bank account statement, income tax returns

How Does the EMI Calculation Work for Bank of India Personal Loan?

Once you have obtained a personal loan from the Bank of India, you must repay the amount through Equated Monthly Installments(EMI). The EMI amount usually contains the applicable interest rate and a part of the principal amount. However, it is important to know how exactly the EMI is calculated. Below are the two most common methods of EMI calculation:

Flat Rate Method

In this method of EMI calculation, the interest applicable and the principal amount are combined. The sum of both these is then divided by the number of months in a year.

Example

Let’s assume that X borrows Rs10,00,000 from the Bank of India at an applicable interest rate of 8% per annum for a loan tenure of 10 years. The calculation of EMI in this method will look like as given below:

(Rs. 10, 00,000 + (Rs. 10, 00,000 x 10 x 0.08)) / (10 x 12) The EMI amount for this loan will be Rs. 15,000

Reducing Balance Method

Given below is the formula used for calculating the EMI using the reducing balance method:

(P x I) x ((1 + r)n)/ (t x ((1 + r)n)- 1)

In this formula.

  • P stands for the principal amount,
  • I is the applicable interest rate,
  • r is the monthly applicable recurring interest rate,
  • n is the total number of EMI payments
  • t is the number of months in a year.

Let’s assume the same example for this method, given below is what the EMI calculation will look like:

((Rs. 10, 00,000 x (0.08)) x (1 + (0.08 / 12)) 120) / (12 x (1 + (0.08/12)) 120 – 1).

The EMI amount, in this case, will be Rs. 12,133.

Note: The EMI amount in the reducing balance method is lower than in the flat rate method. This is because, in flat rate methods, the principal amount of the loan is constant throughout the tenure. On the other hand, in the reducing balance method, the EMI is calculated on the reduced principal amount every month.

How Does the Bank of India Compare with Other Lenders?

The table given below shows how the Bank of India compares with other banks and NBFCs providing personal loans in India:

Bank/NBFC Applicable Interest Rate (%) EMI for a Loan amount of Rs. 5 lakhs for 5 Years (Rs.) EMI for a Loan amount of Rs. 1 lakh for 5 Years (Rs.)
IndusInd Bank 10.49 onwards 10,744 onwards 2,149 onwards
HDFC Bank 11.00% onwards 10,746 onwards 2,149 onwards
Karnataka Bank 11.32 onwards 11,122-12,426 2,224-2,485
Citi bank 10.75 onwards 10,747 onwards 2,149 onwards
Indian Bank 9.90-11.40 10.477-10,599 2,095-2,120
Tata Capital 10.99 onwards 10,869 onwards 2,174 onwards
Indian Overseas Bank 10.90-11.90 10,846-11,097 2,169-2,219
ICICI Bank 10.75 onwards 10,746 onwards 2,149 onwards
Bank of Maharashtra 9.40-14.20 10,464-11,557 2,093-2,311
Bank of Baroda 9.70-17.05 10,428-12,306 2,086-2,461
IDFC First Bank 10.49 onwards 10,744 onwards 2,149 onwards
Axis Bank 10.25 onwards 10,685 onwards 2,137 onwards
UCO Bank 11.45-11.70 10,859-10,921 2,172-2,184
Kotak Mahindra Bank 10.99 onwards 10,869 onwards 2,174 onwards
South Indian Bank 11.25-19.00 10,934-12,970 2,187-2,594
Bank of India 10.30-14.40 10,685-11,441 2,137-2,288
Punjab & Sind Bank 10.90-12.90 10,722-11,224 2,144-2,245
Canara Bank 11.60%- 15.30 10,772-11,712 2,154-2,342
Bajaj Finserv 13.00 onwards 11,377 onwards 2,275 onwards
HSBC 9.54-15.50 10,621-12,027 2,124-2,405
Union Bank of India 10.30-14.40 10,574-11,608 2,115-2,322
Federal Bank 10.49-17.99 10,744-12,694 2,149-2,539

Bank of India Personal Loan Customer Care Number

In case the you have any doubts or queries regarding the Bank of India personal loan, you can get in touch with customer care in the below mentioned ways:

  • Toll Free Number: 1800 103 1906
  • Chargeable Number: (022) – 40919191
  • Address: BANK OF INDIA, STAR HOUSE, C – 5, “G” Block, Bandra Kurla Complex, Bandra (East), Mumbai 400 051

FAQs

From refinancing to reducing your interest, we have the answers right here.

Does Bank of India Provide personal Loan at the best rate?

Bank of India provides several personal loan schemes with attractive interest rates starting at 12.75% p.a.

What is the interest rate of a personal Loan in the Bank of India?

The ideal candidate can get a personal loan from Bank of India with interest rates starting at 12.75% p.a.

What are the benefits Bank of India Provides on personal Loan?

There are numerous benefits associated with a personal loan from Bank of India, such as flexible payments tenure, low interest rates, overdraft facilities, etc

Does the Bank of India have a fixed rate of interest on a personal Loan?

Yes, Bank of India provides personal loans at fixed interest rates starting from 12.75% per annum.

What are the documents required in the Bank of India for a personal Loan?

The applicant will be required to submit a certain set of identification, address, and financial documents as supporting documents for their personal loan application. Some of the common documents that you will be required to submit are Aadhaar Card, PAN Card, and bank account statements.

Can I choose between a fixed or floating rate for the Bank of India personal loan?

No, Bank of India only offers personal loans at fixed rate of interest.

What is the turnaround time for the disbursal of Bank of India Personal Loan?

Bank of India does not specify any certain time for their personal loan disbursals. However, banks and NBFCs in the country take around 2 to 7 working days to process and disburse the loan amount.

How do I check the status of my Bank of India personal loan?

You can check your Bank of India Loan status on the official bank website. You will be required to enter your mobile number and application reference number to track the status.

What is the maximum amount for a Bank of India personal loan?

The maximum loan amount that an applicant can get from the Bank of India is Rs. 20 lakhs.

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