Indian Bank Personal Loan
Personal loans from Indian Bank are readily available to salaried and independent workers at competitive interest rates. Age, income, and credit score are some eligibility conditions. Online or in-person branch applications are accepted by Indian Bank for personal loans. The bank offers rapid loan disbursal and adaptable payback choices as a further service to its clients. The bank offers personal loans at interest rates of 10% p.a. Customers can apply for a loan amount of a maximum of twenty times their monthly salary for a tenure of up to 84 months.
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Features and Benefits of Indian Bank Personal Loan
Indian Bank is among the esteemed PSUs established in the early 20th century. Its headquarters is in Chennai, Tamil Nadu and is managed wholly by the Government of India. They are quite visionary, with a quote which states that they deliver meritorious financial services keeping in mind the customer focus, sustainable growth and employee engagement. It is one of the institutions which gives a captivating interest rate on personal loans that can cover untimely emergencies.
If you have any queries like how you can apply for an Indian Bank personal loan or what is the current Indian Bank personal loan interest rate, this piece can answer those queries.
You must wonder why will you choose Indian Bank for your loan, then below are the features and benefits mentioned to make you sure for the choice of Indian Bank:-
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Engaging Rate of Interest
Indian Bank offers an array of interest rate which ranges from 9.05%-13.65% per annum which is quite attractive to other bank’s offers. The loan approval process is faster as the documentation required for loan approval is quite simple.
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Easy disbursement of Loan Amount
Loan withdrawal becomes very easy as the loan amount is deposited to the candidate’s bank account, making it easy to use.
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Beneficial options for Loan Repayment
Indian Bank provides the candidate with the option of a maximum of 84 EMIs for loan repayment, and the tenure can be chosen at their convenience.
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Sufficient Loan Amount
Indian Bank covers emergencies like debt payment, medical aid, weddings etc., with the loan amount up to 20 times against the candidate’s monthly income.
Eligibility Criteria for Indian Bank Personal Loan
Certain criteria lie in the category of Indian Bank personal loan eligibility:-
- Age Limit – From 21 years to 65 years
- Nationality – Indian
- Credit Score – 750 (Preferred)
- Type of Employment – Self-employed or Salaried
- Status of Employment – should be In-business or Employed for at least 2 years and a minimum of 1 year with current business/employer
- Maximum Amount of Loan – INR 70 lakh (Depends on the repayment capability)
- Minimum Income – INR 4000 to INR 20,000 per month (depends on the area, which is higher in cities)
- Time Period – Minimum 6 months to Maximum of 5 years
Indian Bank Personal Loan Fees and Charges
Indian Bank covers a wide range of individuals and offers interest rates according to their income history and the loan amount. Indian Bank charges a very minimal processing fee on these loan amounts, which are covered below:
| Loan Type | Fees and Charges |
| IND Covid Emergency Pension Loan | Nil |
| IND Covid Emergency Salary Loan | Nil |
| IB Clean Loan to Salaried | Charged 1.00% on Total Loan Amount |
| IB Pension Loan Scheme | Nil on Amount up to INR 25,000 |
| INR 250 on Amount Above INR 25,000 | |
| Stamp Duty | Depends on State Laws |
| Interest on Overdue EMI | 2.00% on the Overdue Amount |
| Prepayment | NA Until 12 EMIs Are Paid |
| Pre-Closure | NA Until 12 EMIs Are Paid |
| Charges for Amortisation Schedule | INR 200 Plus GST |
Documents Required for Indian Bank Personal Loan
Banks issue personal loans after these documents are verified:-
- You need 2-3 passport-size photographs.
- Any of the following identity documents- Aadhaar card/ PAN Card/ Driving license/ Passport etc.
- Any of the address proof- VOTER ID/ Ration Card/ Passport/ Electricity Bill/ Landline Bill etc.
- Any document for Employment Proof- Employee ID/ Employee order/ Photo ID etc.
- Any of the Income Proof- FORM 16/ Latest Salary Slip/ ITR for last three years/ Audited account statement of last three months.
- These other relatable documents- Post-dated cheques, Guarantee by the third party, Form of Loan Application, PPO Pensioners portion (in case of IB Pension Loan), RBI Relief Bond, Original NSC, LIC Policy etc.
What are the Indian Bank Interest Rates?
They give a wide array of interest rates that attract different categories of individuals who want funds to solve their untimely emergency. As of October 2022, the Indian Bank personal loan interest rate varies between a range of 9.00%-14.00%, and Indian Bank publishes its monthly interest rate list, which is available on its official website.
What factors affect Indian Bank’s Personal Loan Interest Rates
Whenever any emergency hits you, you think of the financial institution that provides personal loans without the hassle and lowest interest rates. Indian Bank personal loan interest rates lie in the same category that covers a broad spectrum of people. But, before Bank issues a loan, they do a quality check over the candidate’s profile by using some factors to measure the trustworthiness of the candidate, default history etc. Some of these factors are mentioned below:-
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Income
The first and foremost factor a bank looks into is your income and the savings you pursue with that income. If you are a person who spends more and saves less, banks consider the candidate less worthy as you’ll not be able to make timely payments. Still, if you’re someone that saves more and has high disposable income, that candidate is considered worthy by the bank to issue the loan amount and even in lesser interest rates.
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Employer’s Status
Personal Loans lie in the category of unsecured loans, and banks consider your profile from the purview of the organisation that has hired you. If your employer has a good reputation, the bank implies it as your good reputation and issues loans with ease and even at a lesser interest rate.
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Credit/ CIBIL Score
Banks usually consider a score of 750 a good credit score. Banks determine the creditworthiness of candidates by the measure of credit score; if it’s 750 or above, it reflects good financial health, which in turn means timely repayment of old loans, good income, no remaining debt etc. It even attracts lower interest rates for the candidate’s loan amount.
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Lender’s Relationship
Both entities are responsible for maintaining a healthy relationship, and it takes a lot of time to gain mutual trust during the process. A loan is issued without hectic work if they maintain and nurture that relationship.
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Income-Debt Ratio
The debt payments are divided by the total income. Banks recognise it as an important part of calculating the applicant’s credibility, even if being a part of a large renowned organisation works in a candidate’s favour. Still, if one already has prior debt yet to be paid back, there is a huge burden over the candidate’s pocket, which they settle by charging a higher interest rate.
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History of Defaults
It is the last check for banks against the candidate’s profile; as if there is any standing history of the candidate from any loans etc., it reflects your profile as a defaulter to the banks, and in that view, banks might charge a higher interest rate on the loan amount.
How Can You Calculate the EMI for Indian Bank Personal Loans?
EMI is the amount of loan that you have to repay over a specified period at a fixed interest rate. As Indian Bank offers a range of 9.05%-13.65% interest rates, EMI is calculated on these rates depending upon the different categories of the loan issued like IB Pension Loan scheme, IB Clean Loan to Salaried etc.
The basic formula by which EMI is calculated is [P x R x (1+R)^N]/[(1+R)^N-1] where P is the Principal amount which means P is the total loan amount issued by the bank, R is the interest rate, N is the period in months, i.e. if the loan is issued for two years, the value of N will be 24 months or as such.
Comparison of Indian Bank with other lenders
Below table shows the comparison of Indian Bank with other such banks and their interest rates:-
| BANK | LOAN AMOUNT and PROCESSING FEE | TENURE | INTEREST RATE |
| Indian Bank | Till INR 10 lakh / Up to 1 % of the loan amount | 1-5 year | 9.35% |
| ICICI Bank | Till INR 20 lakh / Up to 2.25% of the loan amount | 1-5 year | 10.50% – 19.25% |
| Citi Bank | Till INR 30 lakh / Up to 3% of the loan amount | 1-5 year | From 10.50% |
| Bajaj Finserv | Till INR 25 lakh / Up to 3.99% of the loan amount | 1-5 year | From 12.99% |
| HDFC Bank | Till INR 40 lakh / Up to 2.50% of the loan amount | 1-5 year | 10.50% – 21.50% |
| Axis Bank | INR 50,000 – INR 15 lakh / Up to 2% of the loan amount | 1-5 years | 7.35% – 24.00% |
Customer Care Number of Indian Bank personal loan
If you face any difficulty in filing or issue regarding Indian Bank personal loan, you can contact the toll-free number:- 1800-425-00-000/ 1800-425-4422.
FAQs
Yes, they offer a range of 9.05%-13.05% interest rates which covers a wide array of public and private entities.
The interest rate of personal loans in Indian banks ranges from 9% to 14%.
Indian Bank provides various benefits to its customers like easy disbursement of loan amounts, direct credit to bank accounts, lower interest rates, huge loan amounts, easy document verification process etc.
The interest rate that Indian Bank offers depends on the type of loan the candidate chooses, and it offers a range of 9.05%-13.65%, which relates to each type of loan.
The documents required for a personal loan in Indian Bank are the last 3 months' salary slip, the last 3 years' ITR, 2-3 passport-size photographs, address proof, and identity proof mentioned and recognised by the bank.
You can always visit the bank’s branch and know the personal loan status or can call on the toll free number 1800 425 00 000 / 1800 425 4422 for any query regarding personal loan.
Yes, Indian Bank consider the CIBIL Score of 750 good for the issuance of a personal loan.
Indian Bank gives the candidate a maximum of INR 70 lakhs personal loan amount(depending on the repayment capacity), and you can choose the minimum amount per your financial emergency.
There are a few mandatory KYC documents that you have to submit before you apply for Indian Bank, which are Aadhaar Card, PAN Card, Driving License, Ration Card, Election ID etc., as per the bank’s condition.