Thinking of a Personal Loan to pay off your debts?

Take a look at Indian Overseas Bank Personal Loan Scheme

Indian Overseas Bank Clean Loan to Salaried Class (Personal Loan)

This loan helps borrowers to get funds to meet their urgent financial needs including wedding expenses, travel expenses, medical expenses, etc. This personal loan can also be repurposed into a consolidation loan to pay off their high-interest credit card debts and loans, thereby consolidating their debts.

Features of IOB Clean Loan

Why this Loan?

  • The Indian Overseas 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 three years of service who need financial assistance to meet urgent personal needs other than speculative purposes
  • This is a collateral-free loan

Loan Amount

  • The maximum loan amount offered under this loan scheme is up to a maximum of ten times the monthly gross salary of the borrower or Rs. 15 lakh, whichever is lower. The actual loan amount to be sanctioned to a borrower is determined by the bank after carefully reviewing the loan application and checking the monthly income, repayment capacity, credit score, etc. of the borrower

Interest

  • The interest rate applicable to this loan is defined as the sum of two factors: Repo Linked Lending Rate (RLLR) and a Spread factor of 3.25%. As of October 2020, the RLLR of IOB is 6.85% bringing the effective interest rate at 10.80%

Repayment

  • Loans up to Rs. 10 lakh: This loan must be repaid within 3 years in EMIs
  • Loans Above Rs. 10 lakh: This loan must be repaid within 5 years in EMIs

Eligibility

  • Permanent/confirmed employees of Public Sector Undertakings, Central Government, State Government units, reputed national and multinational companies with at least three years of service who have a Savings Bank account with IOB
  • The salary of the employee should be routed through the Savings Bank account at the IOB branch where this loan is sanctioned

Security Needed

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

Processing Charges

  • The bank charges anywhere from 0.50%  to 0.75% of the loan amount for processing this loan

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
  • 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 or income tax returns
  • Authorisation to debit Savings Bank account

Reference Facts

  • Indian Overseas Bank Website: www.iob.in and www.iobnet.co.in (net banking)
  • Headquarters: Chennai, Tamil Nadu
  • Call Centre Toll-Free Number: 1800 425 444