Bank of India Personal Loan Interest Rate

Eligibility Criteria for a Bank of India (BOI) Personal Loan

You will be eligible to apply for a personal loan through Bank of India (BOI) if you belong to one of the following classes:

a) Salaried individuals

b) Regular pensioners and/or family pensioners who draw their monthly pension through Bank of India

c) Individuals and professionals with a high net worth

d) Retired employees and staff members of Bank of India (BOI)

Factors Affecting Bank of India (BOI) Personal Loan Interest Rates

1. Repayment capacity: The repayment capacity of a borrower is of seminal importance. Banks usually provide personal loans up to 10 times the monthly salary of a customer. Banks check the CIBIL score of an applicant to determine his or her repayment capacity. Bank of India will offer attractive interest rates to loan applicants with a regular income and a robust credit history.
2. Relationship with Bank of India: If a customer has a good rapport with his or her bank, there is no trust deficit. Consequently, the bank will be in a position to reduce their interest rates offered to privileged customers. Also, a long-standing customer of a bank can negotiate a lower interest rate, provided he or she fulfils all the required eligibility criteria for availing of a Bank of India personal loan.
3. Loan tenure: Interest rate offered by Bank of India depends upon the loan tenure chosen by customers. If the customer opts for a short loan tenure, the bank is most likely to charge a higher interest rate as compared to loans offered on longer tenures.

Illustrations

1. Ms. Michelle Talreja, a resident of Bengaluru, is an employed individual. She draws a monthly salary of Rs.25,000. She has availed a personal loan of Rs.3 lakh through Bank of India (BOI). The loan repayment tenure that she has opted for is 1 year. The rate of interest applicable to her loan amount is 14.85% p.a. The amortisation schedule for the personal loan taken by Ms. Talreja can be shown as follows:

For a salary of Rs.25,000 per month.

Ms. Michelle Talreja will be paying off EMIs of Rs.27,056 for 1 year.  She will be paying off a total amount of Rs.3,24,675, wherein the interest amount of Rs.24,675 is included.

2. Ms. Carolina Diniz, a resident of Bengaluru, draws a monthly salary of Rs.50,000. She has availed a personal loan of Rs.3 lakh through Bank of India (BOI). The loan repayment tenure for the loan is 1 year. The rate of interest charged by the bank on the loan amount is 10.85% p.a. The amortisation schedule for Ms. Carolina's loan has been given below:

For a salary of Rs.50,000 per month

Ms. Carolina will be paying off a monthly EMI amount of Rs.26,494 for a tenure of 12 months to repay her loan completely. The total amount that she would be paying off by the end of the tenure is Rs.3,17,922. This includes a total interest amount of Rs.17,922.

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