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:

• Star Suvidha Express PL (SSEPL) & Star Personal Loan Scheme: 1% of loan amount (min Rs.2,500, max Rs.15,000).

• Star Personal Loan Scheme — Senior Citizens (60+): No processing charge.

• Star Pensioner Loan Scheme: Senior Citizens (60+) — NIL; Others — 0.50% of loan amount (min Rs.250, max Rs.1,000).

• Star Mitra Personal Loan: Waived entirely.

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

• 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.
• 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.
• 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.

Ms. Talreja will be paying off EMIs of Rs.26,914.97 for 1 year at the corrected 13.85% rate. Total amount payable: Rs.3,22,979.64, including total interest of Rs.22,979.59 (corrected from BB's stated Rs.24,675 at the unsupported 14.85% rate).

Illustration 2 (Ms. Carolina Diniz — Rs.3,00,000, 12 months, 10.85% p.a.): EMI Rs.26,494. Python-verified: Rs.26,493.51 — matches BB's figure. 10.85% remains a valid current rate (SSEPL Salaried/Pensioner tier, and Star Pensioner Loan Scheme flat rate). No correction needed.

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