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Indian Overseas Bank Personal Loan

Indian Overseas Bank Personal Loan


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Indian Overseas Bank (IOB)

Established in 1937 before World War 2 by Thiru.M.Ct.M. Chidambaram Chettyar to encourage overseas banking and foreign exchange operations. It is now managed by "The Nationalized Banks (Management and Miscellaneous Provisions) Scheme, 1970, formulated by the Central Government, after consultation with the Reserve Bank of India, in exercise of the powers conferred by section 9 of "The Banking Companies (Acquisition and Transfer of Undertakings) Act 1970".

The bank is operating with about 3700 domestic branches, including 1150 branches in Tamil Nadu, 3 extension counters, and eight branches and offices overseas as of 2014. It also has 3300 ATMs across India.

How to Apply for Indian Overseas Bank Personal Loan

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How to Apply for Indian Overseas Bank Personal Loan - Low interest rate, No hidden costs and administrative charges, Less paperwork, Long tenure, Minimum Income Requirement, Pensioners get attractive offers. CreditMantri offers you the best personal loans matched to your credit profile. Create your credit profile, know where you stand on your credit and apply for loans and credit cards that are right for you. Disclaimer: The information presented has been collated from publicly available sources on the internet. CreditMantri is not responsible for any changes in the same.

What is a personal loan?

A personal loan is an unsecured (i.e. without collateral), multi-purpose loan usually taken to cover short-term money requirements. Personal loans usually have a speedy approval process hence making it one of the most popular loans in the market.

An Introduction to Indian Overseas Bank Personal Loans

Being one of the largest bank in India, Indian Overseas Bank offers a wide range of services in the personal loan segment. It is the most preferred bank by all kinds of people for any financial service. For any immediate financial requirement like wedding, medical treatments, house repair, pleasure vacation etc. can be fulfilled using the personal loans offered by Indian Overseas Bank.

Indian Overseas Bank Personal Loan

Advantages of Indian Overseas Bank

  • Low interest rate
  • No hidden costs and administrative charges
  • Less paperwork
  • Long tenure
  • Minimum Income Requirement
  • Pensioners get attractive offers

Documentation Required for Indian Overseas Bank Personal Loans

Important documents to be submitted while applying for personal loans with Indian Overseas Bank

  • Completed loan application
  • 3 Passport size photographs
  • Proof of identify (photo copies of Voters ID card/ Passport/ Driving licence/ IT PAN card)
  • Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill)
  • Statement of Bank Account/ Pass Book for last six months
  • Form 16/IT returns for the last two financial years for salaried employees
  • IT returns for the three years for self-employed professionals

Indian Overseas Bank Personal Loans

Catering to the needs of various sections of people, tailor-made Indian Overseas Bank personal loans is the best option to fulfil your short-term needs. You can choose the best personal loan based on your requirement.

Key Features

ParticularsClean loanConsumption loan
Age21 and above
Maximum loan amountMore than 75 lakhs
Tenure60 months
Interest14.05% (MCLR for 1 year)13.05% (MCLR for 1 year)

Clean loan

Clean loans are a personal loan offered to employees in Government, Public Sector Undertakings, reputed private enterprises, firms, companies etc. and confirmed in service.

Eligibility Criteria

Individual must be an employee in Government, Public Sector Undertakings, reputed private enterprises, firms, companies etc.

The take home pay, after deduction of the proposed loan installment should be more than 50% of the gross pay. LIC agents are also eligible to apply for the loan subject to conditions.


Two, third party personal guarantee, the salary of each guarantor being at least equal to that of the borrower.

Other conditions: 

1. The employee should have a S.B. account in the branch from where the loan is proposed to be availed. 

2. Salary of the employee should be routed through the S.B. account at the branch where the loan is sanctioned. 

3. Undertaking letter from the employer undertaking to deduct from salary, loan installment every month and remit to bank to be produced. 

4. Letter from the employer, undertaking to recover the dues from the terminal benefits of the employee in case of death, retirement or resignation to be produced.

Documents required: 

Application form, Salary certificate of applicant and guarantor with deduction particulars, undertaking letter from employer to deduct monthly installment and recover the dues from terminal benefit in case of necessity. 

Consumption Loans - Sahayika

Known as consumption loan for meeting social financial commitments such as marriage in the family, education of children, medical treatment etc. The loan can be availed for any financial commitment with in the ambit of law. Bank will not verify the purpose declared.

Eligibility criteria

Individual, confirmed permanent employee of a reputed organization or a professional or self-employed or businessperson with three years standing in the field of activity, can apply for the loan. For salaried person, the take home pay is at least 40% of the gross salary after taking into account the installment for the present loan.

Maximum loan  

Maximum loan amount is Rs.10 lakh. The loan amount, however, depends on the value of the security offered and repaying capacity. For professionals, self-employed and business persons, the maximum loan is restricted to total annual income of previous year, as declared in the I.T. return or assessment order but not exceeding Rs.10 lakh. 


50% on immovable property; 25% on securities such as NSC, KVP, IVP, ULIP etc.; 10% on Life policies (surrender value) of LIC of India and other private insurance companies.  


Repayable in Equated Monthly Installments up to a maximum period of 60 months. Shorter repayment period is also permitted. 


Immovable property or Liquid securities like NSC, IVP, KVP, ULIP, UNITS etc. or Life policies of LIC of India and other private insurance companies approved by IRDA 


  • Application indicting the purpose for which the loan is required, amount of loan required and the repayment period
  • Proof of employment and income
  • Proof of standing in the field of activity for Professionals, self-employed and business people
  • Income tax assessment order or return with ITO acknowledgement for Professionals etc.
  • Details of the security offered and copies of the documents

Indian Overseas Bank MCLR (Marginal Cost of funds based Lending Rate) (For new borrowers)

Following the guidelines issued by the Reserve Bank of India, IOB will offer personal loans based on MCLR based interest rate, effective from April 1, 2016.

MCLR Benchmark Tenor (Period)Benchmark Rates (MCLR)
Overnight9.50 %
1 month9.55 %
3 months9.60 %
6 months9.65 %
1 year9.70%
2 years9.80 %
3 years9.90 %

Indian overseas Bank Personal Loan Interest Rates (MCLR)

Following are the interest rates offered by Indian Overseas Bank for its Personal loans IOB Clean Loan and IOB Sahayika Loan.

IOB Clean LoanIOB Sahayika Loan
14.05% (MCLR for 1 year)13.05% (MCLR for 1 year)

Indian Overseas Bank Base Rate & Prime Lending Rates (For existing borrowers)

All existing borrowers of Indian Overseas Bank can avail personal loans at the existing Base Rate, which is subject to change from time to time.

Base Rate (With effect from 15.10.2016)9.70%
Prime Lending Rate (With effect from 5.12.2016)15.50%
Loan AmountOther BorrowersWomen
Up to 30 lakhs@ BR i.e. 9.70%@ BR i.e. 9.70%
Above Rs 30 lakh & Up to Rs 75 lakh@ BR i.e. 9.70%@ BR i.e. 9.70%
Above Rs 75 lakh@ BR + 0.25% i.e. 9.95%@ BR i.e. 9.70%

Indian Overseas Bank Personal Loan Interest Rate (Base Rate)

Following are the interest rates for personal loans offered by Indian Overseas Bank.

LoanRate of Interest (Floating)
IOB Clean Loan13.45%
IOB Clean Loan14.70%

All existing borrowers who have taken personal loans with Indian Overseas Bank have the choice to either continue with the Base Rate System or migrate to the MCLR based interest rate system.

Other Charges

Loan Processing ChargeRs. 204 for every lakh in the loan amount
Pre-payment ChargesNo prepayments allowed prior to 12 EMIs
No Due Certificate / No Objection Certificate (NOC)NIL
Duplicate of No Dues Certificate / NOCNIL
Solvency CertificateNA
Charges for changing from Fixed to Floating Rate of InterestNot applicable
Charges for changing from Floating to Fixed Rate of InterestNot applicable
Stamp Duty & other Statutory ChargesAs per applicable laws
Credit Assessment ChargesNot applicable
Non -standard repayment chargesNot applicable
Pre-closure Charges2.23% for both rural as well as non-rural areas

Indian Overseas Bank Personal Loans Overview

Indian Overseas Bank provides attractive interest rates on personal loans when compared to other lenders. Low interest rate with Rs. 204 for every lakh in the loan amount as processing fees and no hidden charges makes Indian Overseas Bank personal loans a prospective and viable option for borrowing for your urgent financial requirements. With long tenure and part-prepayment, Indian Overseas Bank personal loans do not impose much burden on the customers.

Indian Overseas Bank Personal Loan FAQs

1. What are my loan limits?

Your personal loan limit would be determined by your income and repayment capacity.

2. Can my spouse income be included for calculating the loan amount?

Yes, your spouse's income can be included provided he/she guarantees the loan or the loan is taken jointly.

3. Do I have to pledge some form of security?

No Security is Needed

4. What is the repayment schedule like?

The minimum amount that you are expected to pay every month is the EMI. You are allowed to pay more than the EMI if you wish to, and we do not charge any prepayment penalty.

5. What is EMI?

EMI stands for Equated Monthly Instalments. This instalment comprises both principal and interest components. Use the EMI calculator to find out your monthly payments based on the loan amount, the rate of interest and the repayment period. Choose the combination that best meets your financial resources and requirements.

6. What is the processing fee? Are there any other charges?

There is Rs. 204 for every lakh in the loan amount as processing fee for Personal loan.

7. Do I have the option of choosing a fixed or floating rate for the loan?

You have the option to avail the loan with either a fixed interest rate or a floating one. In the case of a fixed rate loan, the interest rate on the loan will remain fixed through the entire tenure of the loan, whereas in the case of a floating rate loan, the interest rate could decline or rise in line with the changes in the Bank's Medium-Term Lending Rate (SBMTLR).

8. How does Indian Overseas Bank Personal loan compare with those offered by other banks?

There is total transparency with regard to the rate of interest and the fees charged by us. Indian Overseas Bank offers personal loans at the cheapest rates of interest, with no security or collateral Indian Overseas Bank offer loans for the longest tenors (60 months), with the flexibility provided to reduce the tenor by prepaying the loan without any penalty. The Bank provides finance for any personal need or requirement; the total amount being determined on the basis of repaying capacity. With an Indian Overseas Bank personal loan, you can choose between fixed rates of interest and floating interest rates.

9. How can I apply for the Indian Overseas Bank personal loan?

You can either apply online or visit the nearest Indian Overseas Bank loan centre for a personal loan.

10.Will there be any charges for prepayment towards my Indian Overseas Bank personal loan?

There are no pre-payment charges levied towards the personal loan.

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