IOB Personal Loan – Interest Rate, Eligibility and Documentation in 2024
Indian Overseas Bank, or IOB, is a significant public sector bank that provides personal loans up to Rs 15 lakhs for salaried individuals and self-employed professionals.
IOB personal loans come with attractive features like low-interest rates starting from 10.25%, minimal charges, flexible tenure, and loan amounts as per eligibility.
If you plan to apply for a personal loan from IOB, here is a detailed guide on the application process, required documents, eligibility criteria, interest rates, repayment tenure, customer care contacts, and other vital details.
IOB Personal Loan Customer Care
In case of any queries or issues regarding IOB personal loan application, disbursal, EMIs, or any other assistance, you can contact the bank customer care through the below channels:
- Toll-Free Number: 1800-102-9408
- 1800-425-4242
- Landline Number: 044 – 28519620
- Email ID: Digitalpbbu@iob.in
- Timings: Monday to Saturday, 10 AM to 5 PM
IOB Personal Loan Eligibility
To qualify for a personal loan approved by IOB, the broad eligibility norms are:
For Salaried Individuals:
- Age between 21 years to 65 years
- Minimum monthly income of Rs. 15,000 for metro cities and Rs. 12,000 for non-metro locations
- Work experience of at least two years
For Self-employed:
- I have been in the same business for the last three years
- Annual business turnover and income should be adequate for repayment capability.
- Proper business documentation, including registration proof, IT returns for the last two years, etc.
Documents Required for IOB Personal Loan
When applying for a personal loan from IOB, you must submit certain documents proving your identity, residence, income status, and credit profile. The list of documents required are:
- Application form
- Identity proof – Aadhaar Card, PAN Card, Voter ID Card, Passport
- Address proof – Rent Agreement, Ration card, Electricity bill etc.
- Latest salary slips or bank statements reflecting regular monthly credits
- The last six months’ bank account statements
- Proof of work experience
- Business registration proof and credentials (for self-employed)
- Latest Form 16 / Income Tax Returns
- Proof of ownership of residential property/assets
- CIBIL credit report
- Passport size photographs
IOB Personal Loan Interest Rates
The interest rate applicable on an IOB personal loan varies based on your employer profile, annual income, credit score, company type, and loan tenure selected.
The starting rate is 10.25% per annum, with a base rate ranging from 8.95% to 9.70%. Other charges include:
- Processing fee – Maximum of 2% of loan amount + Service Tax
- Penal interest – 2% pm for defaults or delays in EMI repayment
- NO prepayment or foreclosure charges
The final IOB personal loan rate of interest offered to you would depend on your overall credit profile. The higher the credit score, the more vital your profile is, leading to a better rate.
IOB Personal Loan Amount
Salaried individuals can avail of a Rs 50,000 to Rs 15 lakh personal loan from IOB. At the same time, self-employed professionals are extended loans up to Rs 10 lakhs based on factors like eligibility, repayment capacity, income stability, and credit profile.
IOB Personal Loan Tenure
IOB allows you to choose a flexible repayment tenure ranging from 1 year to 5 years to repay the personal loan comfortably. The available tenure options are:
- 1 year
- 2 years
- 3 years
- 4 years
- 5 years
Of course, the longer the tenure, the lower the EMI outgo, albeit the higher the total interest outlay. You can use the IOB personal loan EMI calculator to determine optimal tenure and EMI suited to repayment ability.
Repayment Options
IOB provides flexible repayment options, including:
- EMI – Equated monthly installment
- PEMI – Progressive equated monthly installment
Under PEMI, the EMI amount increases by 5% yearly (on reducing balance) while it remains fixed for the entire tenure in EMI. You can choose as per financial planning.
IOB Personal Loan end-use
IOB approves personal loans for a range of personal expenses, including:
- Marriage
- Education
- Medical emergencies
- Vacation
- Home Renovation
- Purchase of consumer durables
- Debt consolidation
So whether you have a wedding or higher education goal, medical needs, want to consolidate existing debts at a lower rate, or make home improvements, the IOB personal loan amount caters to most requirements conveniently.
How To Apply For an IOB Personal Loan
Here is a step-by-step process to apply for and avail of a personal loan from IOB:
Offline Application
- Visit the nearest IOB branch and meet the credit manager/loan officer
- Request and fill out the IOB personal loan application form
- Attach the necessary documents with the form as per the list shared earlier
- IOB will assess form-based eligibility, documents, credit profiles, etc.
- They will convey the loan amount, interest rate, and tenure offered if approved.
- Upon acceptance of the offer, you must submit the cheque for processing fees and sign the agreement.
- IOB will disburse the loan amount to your account within five working days
Online Application Through Bank Website
- Go to the IOB website “www.iob.in” and click “Personal Banking.”
- Select the “Personal Loan” option and click “Apply Now.”
- An online loan application form opens up. Fill in your personal, income, and employment details accurately.
- Upload scanned copies of your photograph, identity/address proof, and income documents.
- Read terms, accept declarations, and pay processing fees online via Net Banking/Debit Card.
- IOB processes the application online and conveys approval decision on the registered email ID/mobile
- If approved, visit a branch to complete documentation & obtain loan disbursal.
Online Application Through Paisabazaar.com
Another easier way to apply for an IOB personal loan is through bank loan marketplace platforms like Paisabazaar.com. Key benefits include –
➔ Paperless application
➔ Compare IOB loan offers with other leading banks/NBFC products
➔ Customized loan offers based on credit score
➔ Dedicated loan expert assisting through the process
➔ Faster approval and disbursal
Using the Paisabazaar online interface, you can conveniently apply and secure attractive deals on IOB or other personal loans.
IOB Personal Loan Status Tracking
Once you apply for the IOB personal loan, you can track real-time application status by:
- Calling up the bank branch or credit team who have your application
- I am emailing the bank branch for the latest update
- Visiting the IOB branch and meeting the concerned Loan Manager
Regularly tracking the status will clarify the application stage, reasons for any delay, and expected loan approval date, if applicable.
How To Calculate IOB Personal Loan EMI
Before finalizing the IOB personal loan amount, using the EMI calculator to assess regular monthly EMI payable on loan for a given interest rate and tenure period is prudent. This helps confirm repayment capacity from monthly income without default.
IOB gives an online EMI calculator on the Paisabazaar portal for self-calculating EMI. Steps are:
- Enter the loan amount needed
- Input personal loan tenure – 2 years, three years, etc.
- Assume the rate of interest as per current rates
- Click “Calculate EMI”
The EMI calculator provides a detailed break-up, including EMI amount, total interest outgo, and overall repayment obligation. Adjusting tenure, loan amount, and interest rate, arrive at optimal EMI matching income.
IOB Personal Loan Account Statement
While repaying the IOB personal loan in EMIs, you can check the outstanding loan amount status anytime by:
- IOB Net Banking: Log in through Internet banking to access the personal loan account dashboard, which provides the opening balance, EMI paid, next due date, interest outstanding, current balance, etc.
- IOB Mobile Banking App – Check personal loan account statements, generate loan certificates, and get interest certificates for tax purposes
- Visit Home Branch – Carry passport/ID card for verification to obtain personal loan outstanding balance statement across branch counter.
- Call Branch/Credit team – Contact IOB Phone Banking or loan department and obtain personal loan balance details after providing account details.
Thus, using any of the above mediums, you can easily access the current status of your running IOB personal loan account.
IOB Personal Loan Prepayment And Foreclosure
While the standard practice is to service IOB personal loans for the entire tenure to benefit from more extended EMI payouts, the bank allows part prepayments or forecloses loans as the whole subject to the following:
Prepayment Charges
There are no prepayment penalties if loan tenure is less than or equal to 12 months.
For longer tenures, prepayment is allowed only once 12 EMIs have been paid without penalty. Subsequent prepayments attract charges of 2% of the loan or principal outstanding, whichever is lower.
Foreclosure Of IOB Personal Loan
IOB allows foreclosure or early closure of personal loans post payment of a minimum of 12 EMIs. No foreclosure penalties or charges are applicable.
To foreclose:
Submit an application at your home branch mentioning your intent for full & final settlement.
- Ask for pending dues statements and make full payment via cheque/DD.
- Collect No Dues certification from IOB, completing foreclosure formalities.
By making informed personal loan decisions and ensuring financial discipline, you can fulfill lifestyle needs and build a healthy credit profile for faster future approvals. Follow the application process as shared above to avail an IOB personal loan.
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