Indian Bank Clean Loan to Salaried Class

Indian Bank Clean Loan to Salaried Class (Personal Loan)

This loan helps borrowers to get funds to meet their urgent financial needs including unexpected health or personal expenses, pay for weddings, travel, hospital bills, etc. This Indian Bank personal loan can also be repurposed into a consolidation loan to pay off your high-interest credit card debts and loans, thereby allowing you to reduce your interest expenses and bringing down your EMI.

For borrowers whose salary is not credited to an account in the bank, the loan can be taken either as a term loan or as an overdraft but not as both. This restriction is not applicable to borrowers who have a salary account with the bank.

Features of Indian Bank Clean Loan to Salaried Class

Why this Loan?

  • The Indian Bank Clean Loan to Salaried Class is meant for permanent employees of Public Sector Undertakings, Central Government, State Government units, reputed national and multinational companies with at least two years of service who need financial assistance to meet urgent personal needs other than speculative purposes
  • The loan can be given to:
    • Borrowers whose salary is credited to an Indian Bank account without any undertaking or check-off,
    • To those whose salary is not credited to an account with the bank but can offer an undertaking or check-off, or
    • Those who have taken a home loan from the bank and the account is regular
  • This is a collateral-free loan but needs the guarantee of your spouse or the nominee in your pension fund or gratuity plan if the salary is not credited to an Indian Bank account

Loan Amount

  • If salary is credited to an Indian Bank account
    • For overdrafts, the maximum limit is Rs 2 lakh or up to 1-month gross salary, whichever is lower
    • The maximum loan amount offered under this loan is Rs 50 lakh or up to a maximum of twenty times the monthly gross salary of the borrower, whichever is lower. This limit applies to both the overdraft and term loan
  • If salary is not credited to an Indian Bank account
    • The maximum loan amount offered under this loan is up to a maximum of twenty times the monthly gross salary of the borrower

Interest

  • The interest rate for personal loans has not been specified for April 2023 but the earlier rates ranged from around 9.50% to 15%+

Repayment

  • This loan must be repaid within 84 months (7 years) in EMIs. The loan must be closed three years before superannuation (retirement)
  • For overdrafts given to borrowers who do not have a salary account with the bank, the maximum tenure is 60 months if the loan amount is less than Rs 5 lakh, and 84 months if the overdraft is over Rs 5 lakh

Eligibility

  • Permanent/confirmed employees of Public Sector Undertakings, Central Government, State Government units, reputed national and multinational companies with at least two years of service even if they do not have a salary account with the bank
  • The applicant must be at least 21 years old
  • The take-home pay after EMI payment should not be less than 40% of gross salary
  • Indian Bank needs a guarantee from the spouse, wherever applicable, or the nominee mentioned in your provident fund, gratuity or National Pension System

Security Needed

  • This is an unsecured loan, meaning you don’t have to offer any collateral to get the loan
  • The bank asks for employer’s sponsorship, authorisation to debit savings bank account and third-party guarantee to secure this loan

Processing Charges

  • The bank charges no fees from government and public sector undertaking employees
  • For other borrowers, it charges a processing fee of 1.0% of the loan amount up to a maximum of Rs 1,000 for processing this loan
  • For pre-approved personal loans, it charges Rs 470 as processing fees

Documents Needed

  • Loan Application Form duly filled and signed by the applicant and co-applicant, if any
  • Two Passport Size Photographs of applicant and co-applicant
  • PAN Card
  • Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
  • Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
  • Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income/Banking Proof for Salaried Professionals: Last 3 months’ salary slip, Form 16 duly attested by the employer or income tax returns
  • Proof of employment such as copy of employment order, photo ID card issued by the employer, employee number, etc.
  • Authorisation to debit Savings Bank account or ECS or NACH mandate

Reference Facts

  • Indian Bank Website: https://indianbank.in
  • Headquarters: Chennai, Tamil Nadu
  • Call Centre Toll-Free Number: 1800 425 00 000