Bank of india Personal Loan

Bank of India Personal Loan Interest Rates

The table given below shows the Bank of India Personal Loan interest rates:

Loan Type	Interest Rate
Unsecured Loans	13.75% p.a.
Loans Secured Under Tie-Up Arrangements	12.75% p.a.
Loans for Senior Citizens Over Rs. 50,000	11.75% p.a.
Pensioners	10.75% p.a.
BOI Star Personal Loan- Doctor Plus	11.25% p.a.

Factors Affecting Bank of India Personal Loan Interest Rates

Even though Bank of India offers personal loans starting at 12.75% per annum, the interest rate offered to applicants vary according to several factors. Below are some factors affecting the interest rates:

• Applicant’s Income: If the applicant has a higher income, the higher the chances of personal loan approval from the Bank of India. The applicant’s income is considered to determine the applicant’s repayment ability.
• Repayment History: The credit profile reflects the applicant’s poor repayment track record. If the applicant displays a less-than-satisfactory credit report, the chances of approval go down. The ideal applicant should have a credit score of over 750.
• Applicant’s Age: The applicant’s age is also considered while processing the personal loan application. If the applicant is young and has a higher income, there are more chances of approval. If the applicant is closer to retirement age, then the applicant will be granted higher interest rates. This is because banks and NBFCs prefer the loan to be closed before the applicant is 70 years old.
• Loan Amount: The approved loan amount also plays a major role in determining the interest rate for the loan. The loan amount is assessed in comparison with the income of the applicant. If the applicant’s income is lower than the approved loan amount, they will be granted a higher loan amount.

How Does the EMI Calculation Work for Bank of India Personal Loan?

Once you have obtained a personal loan from the Bank of India, you must repay the amount through Equated Monthly Installments(EMI). The EMI amount usually contains the applicable interest rate and a part of the principal amount. However, it is important to know how exactly the EMI is calculated. Below are the two most common methods of EMI calculation:

Flat Rate Method

In this method of EMI calculation, the interest applicable and the principal amount are combined. The sum of both these is then divided by the number of months in a year.

Example

Let’s assume that X borrows Rs10,00,000 from the Bank of India at an applicable interest rate of 8% per annum for a loan tenure of 10 years. The calculation of EMI in this method will look like as given below:

(Rs. 10, 00,000 + (Rs. 10, 00,000 x 10 x 0.08)) / (10 x 12)

The EMI amount for this loan will be Rs. 15,000

Reducing Balance Method

Given below is the formula used for calculating the EMI using the reducing balance method:

(P x I) x ((1 + r)n)/ (t x ((1 + r)n)- 1)

In this formula.

• P stands for the principal amount,
• I is the applicable interest rate,
• r is the monthly applicable recurring interest rate,
• n is the total number of EMI payments
• t is the number of months in a year.

Let’s assume the same example for this method, given below is what the EMI calculation will look like:

((Rs. 10, 00,000 x (0.08)) x (1 + (0.08 / 12)) 120) / (12 x (1 + (0.08/12)) 120 – 1).

The EMI amount, in this case, will be Rs. 12,133.

Note: The EMI amount in the reducing balance method is lower than in the flat rate method. This is because, in flat rate methods, the principal amount of the loan is constant throughout the tenure. On the other hand, in the reducing balance method, the EMI is calculated on the reduced principal amount every month.

How Does the Bank of India Compare with Other Lenders?

The table given below shows how the Bank of India compares with other banks and NBFCs providing personal loans in India:

Bank/NBFC	Applicable Interest Rate (%)	EMI for a Loan amount of Rs. 5 lakhs for 5 Years (Rs.)	EMI for a Loan amount of Rs. 1 lakh for 5 Years (Rs.)
IndusInd Bank	10.49 onwards	10,744 onwards	2,149 onwards
HDFC Bank	11.00% onwards	10,746 onwards	2,149 onwards
Karnataka Bank	11.32 onwards	11,122-12,426	2,224-2,485
Citi bank	10.75 onwards	10,747 onwards	2,149 onwards
Indian Bank	9.90-11.40	10.477-10,599	2,095-2,120
Tata Capital	10.99 onwards	10,869 onwards	2,174 onwards
Indian Overseas Bank	10.90-11.90	10,846-11,097	2,169-2,219
ICICI Bank	10.75 onwards	10,746 onwards	2,149 onwards
Bank of Maharashtra	9.40-14.20	10,464-11,557	2,093-2,311
Bank of Baroda	9.70-17.05	10,428-12,306	2,086-2,461
IDFC First Bank	10.49 onwards	10,744 onwards	2,149 onwards
Axis Bank	10.25 onwards	10,685 onwards	2,137 onwards
UCO Bank	11.45-11.70	10,859-10,921	2,172-2,184
Kotak Mahindra Bank	10.99 onwards	10,869 onwards	2,174 onwards
South Indian Bank	11.25-19.00	10,934-12,970	2,187-2,594
Bank of India	10.30-14.40	10,685-11,441	2,137-2,288
Punjab & Sind Bank	10.90-12.90	10,722-11,224	2,144-2,245
Canara Bank	11.60%- 15.30	10,772-11,712	2,154-2,342
Bajaj Finserv	13.00 onwards	11,377 onwards	2,275 onwards
HSBC	9.54-15.50	10,621-12,027	2,124-2,405
Union Bank of India	10.30-14.40	10,574-11,608	2,115-2,322
Federal Bank	10.49-17.99	10,744-12,694	2,149-2,539

Bank of India Personal Loan Customer Care Number

In case the you have any doubts or queries regarding the Bank of India personal loan, you can get in touch with customer care in the below mentioned ways:

• Toll Free Number: 1800 103 1906
• Chargeable Number: (022) – 40919191
• Address: BANK OF INDIA, STAR HOUSE, C – 5, “G” Block, Bandra Kurla Complex, Bandra (East), Mumbai 400 051