Bank of India Personal Loan

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.

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 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