Personal Loans from Indian Overseas Bank (IOB) are the perfect financial choice to fulfil your dreams. These are available under various schemes for individuals and companies. Applicants must fulfil the minimum monthly salary requirements to avail of the IOB personal loan, which is offered up to INR 15 lakhs. You can fill out the application form online and apply for the loans easily. Let’s take you through the important features, interest rates, terms and conditions, application process and much more in this blog.
Table of contents
Overview of Indian Overseas Bank Personal Loans
Indian Overseas Bank offers personal loans to employees in government, public sector undertakings, reputed private enterprises, firms, companies, etc. who are confirmed in service. The loan is offered up to 20/ 15/ 10 times the salary or up to INR 15 lakhs (whichever is lower) at 10.85% p.a onwards. You can repay the personal loan in 84 months (7 years).
Unlike ICICI Bank personal loans or Bank of India personal loans, you are required to pledge a security. By fulfilling the eligibility criteria and submitting the required documents during the application process, you can easily apply for Indian Overseas Bank personal loans. A personal loan top-up facility is also available for existing borrowers.
| Key Features of Indian Overseas Bank Personal Loans | |
| Loan Amount | Up to 20/ 25/ 10 times the salary or Up to INR 15 lakhs (whichever is lower) |
| Interest Rates | 10.85% to 12.85% p.a |
| Repayment Tenure | 84 months (7 years) |
| Margin Money | Not Required |
| Processing Charges | Up to INR 5 lakhs- 0.40% of the loan amount Above INR 5 lakhs- 0.50% of the loan amount |
IOB Personal Loan Schemes
Indian Overseas Bank also offers personal loans for HNI (High Net Worth Individuals) and special personal loans to HNI-VIP. The loam amount is up to INR 15 lakhs and INR 25 lakhs respectively. Interest rates on these loans start at 12.50% p.a onwards.
IOB Personal Loan for HNI- IOB Royal
IOB Royal personal loans for HNI are offered to meet any socio-economic financial needs of the applicant. It includes purposes like marriage, travel, or any other financial commitments.
- Minimum Age: 25 years
- Minimum Gross Income: INR 75,000 per month
- Loan Amount: Up to INR 15 lakhs
- Margin Money: NIL
- Tenure: 1 to 7 years
- Interest Rate: 12.50% p.a. for loans less than 4 years, 13.00% p.a. for loans above 4 years
- Processing Fees: 0.50% of the loan amount + taxes for loans above INR 5 lakhs
- Security: Not required
- Moratorium Period: NIL
Special Personal Loan for HNI-VIP
Special personal loans for HNI-VIP are offered for purchasing any household goods.
- Age: Minimum 25 years and maximum 60 years at the maturity
- Minimum Gross Income: INR 75,000 per month with 2 years of service in the same organisation
- Loan Amount: Up to INR 25 lakhs or 90% of the cost of the article
- Margin Money: 10% of the cost of the article
- Tenure: 1 to 6 years
- Interest Rate: 11.90% p.a.
- Processing Fees: 0.50% of the loan amount + taxes
- Security: Required
- For loans up to INR 15 lakhs: Hypothecation of purchased items
- For loans above INR 15 lakhs: Third-party guarantee or collateral security, along with hypothecation of purchased items
(Note: Hypothecation means using the purchased items as security for the loan.)
Also Read: Know all about IOB education loan to study abroad. Check out the loan features, interest rates, eligibility, documentation, and application process.
Interest Rates on IOB Personal Loans
Indian Overseas Bank personal loan interest rates are competitive. They range from 10.58% to 12.85% p.a based on the CIBIL score for personal loans. The effective ROI is calculated as the sum of RLLR (Repo-linked Lending Rate) and spread. Check out the table below to know the interest rates on IOB personal loans based on different categories-
| Category | CIBIL Score | Interest Rate | Effective ROI |
| Category A (government employees, railway, defence, and paramilitary personnel, & employees whose salary is credited to IOB) | Above 775 | RLLR + 1.50% | 10.85% p.a |
| 700 to 775 | RLLR + 2.00% | 11.35% p.a | |
| 600 to 700 | RLLR + 2.50% | 11.85% p.a | |
| Category B (employees of reputable private firms or MNCs with regular monthly salaries who have an IOB salary account for at least 6 months) | Above 775 | RLLR + 2.00% | 11.35% p.a |
| 700 to 775 | RLLR + 2.50% | 11.85% p.a | |
| 600 to 700 | RLLR + 3.00% | 12.35% p.a | |
| Category C (employees of reputable private firms or MNCs with regular monthly salaries who do not have an IOB salary account) | Above 775 | RLLR + 2.50% | 11.85% p.a |
| 700 to 775 | RLLR + 3.00% | 12.35% p.a | |
| 600 to 700 | RLLR + 3.50% | 12.85% p.a |
Please Note: Interest rates mentioned are subject to change based on market conditions and Indian Overseas Bank’s guidelines. Please check the official website for the latest updates.
Eligibility Criteria & Documentation
Employees in government, public sector undertakings, reputed private enterprises, firms, companies, etc. who are confirmed in service are eligible to apply for Indian Overseas Bank personal loans.
- You must have a minimum take-home salary of 50% of your gross pay after deducting the proposed loan instalment.
- LIC agents are also eligible subject to specific conditions.
- Regular salary must be credited to the bank account for a minimum of 6 months
- Must be able to pledge a security.
- The employee should have a savings account at the branch where the loan is proposed.
- Salary should be routed through the savings account at the branch.
- Employer undertaking is needed to deduct loan instalment from salary and remit to bank.
Once you fulfil the eligibility criteria, make sure to gather the supporting documents and upload/ attach them with the Indian Overseas Bank personal loan application form. Here’s the list of documents required-
- PAN Card/ Voter ID/ Driving License/ Passport
- Latest salary slip
- Form 16
- The last 6 months’ bank statements
- IT returns for the last 2 years (if self-employed)
- Completed loan application form
- Undertaking letter from the employer to deduct EMIs
Also Read: Taking a loan for higher studies abroad? Check out the list of documents required for an IOB education loan.
How to Apply for Indian Overseas Bank Personal Loans
Indian Overseas Bank’s online digital platform allows you to apply for personal loans anywhere anytime. You simply need to visit the IOB’s official website and follow the instructions given below-
- Navigate to the ‘Apply Online’ button.
- Click on ‘Apply Now’ under the ‘Personal Loan’ section.
- You may check for eligibility to ensure that you meet the requirements.
- Now, click on ‘Apply Now’ and enter your mobile number and captcha.
- Complete the application form by filling in all required details.
- Prepare and upload necessary documents, including identity proof, income proof, address proof, and photographs.
- Review your application and click the “Submit” button.
- The bank will process your application and notify you of the status.
You can follow the first two steps to track your application by using your reference number. in a convenient manner. If you are unable to complete the application, you can also complete your incomplete application by clicking on ‘Continue Application’. Hope this blog helped you with the important details.
To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
FAQs
The minimum salary required for IOB’s personal loan is INR 15,000 per month.
Employees in government, public sector undertakings, reputed private enterprises, firms, companies, etc. who are confirmed in service. LIC agents are also eligible subject to specific conditions.
The interest rate for personal loans at Indian Overseas Bank ranges from 10.85% to 12.85% p.a, depending on the credit score, loan type and tenure.
CIBIL score of 750 and above is generally favourable for Indian Overseas Bank personal loan approval. However, you can also get a personal loan with a low CIBIL score (600 to 700) at higher interest rates.
Indian Overseas Bank offers personal loans up to ₹15 lakhs, depending on the applicant’s salary and eligibility criteria.
