Bank of India Personal Loan Interest Rate begin at 10.25% p.a. for loan quantities up to Rs 20 lakh and repayment terms up to 3 years. The public sector bank also offers personal loans to physicians labelled as BOI Star Doctor–Plus and pensioners labelled as BOI Star Pensioner Loan Scheme with annual interest rates of 12.35% and 11.85%, respectively.
Table of Contents
Bank of India Personal Loan Interest Rate
BOI Star Personal Loan Interest Rates
| Particulars | Interest rates (p.a.) |
| Clean/Unsecured | 14.75% |
| Financing secured under tie-up arrangements | 13.75% |
| For senior citizens above 60 years of age and above loan of Rs 50,000 | 12.75% |
| Star Pensioner Loan Scheme | 11.75% |
| BOI Star Personal Loan- Doctor Plus | 12.25% |
Star Suvidha Express Personal Loan
| Particulars | Interest rates (p.a.) |
| Salaried/Pensioner | 10.25% |
| Others | 11.25% |
In addition, Bank of India offers personal loans for physicians and personal loans for pensioners under the BOI Star Doctor–Plus and BOI Star Pensioner Loan Schemes with annual interest rates of 12.25% p.a. and 11.75% p.a.
What are the factors affecting personal loan interest rates?
The differential interest rates of the Bank of India’s various Personal Loan schemes and for its various applicant categories have not been disclosed. Note that, as with any other lender, Bank of India may consider a variety of factors, such as monthly income, job profile, credit score, employer’s profile, etc., when determining the interest rates for its personal loan applicants. Let’s examine a few of the most important variables that affect the interest rate on your personal loan.
Credit score
When determining interest rates, the credit ratings of loan applicants are frequently considered by many lenders. Applicants with credit scores of 750 or higher are more likely to qualify for loans with reduced interest rates than those with lower scores. The timely repayment of credit card bills and EMIs, the avoidance of multiple credit card applications or loans within a short time frame, and the maintenance of a minimum credit utilisation ratio all contribute to the maintenance of higher credit scores, thereby increasing eligibility for credit cards, house loans, and personal loans.
In addition, errors in the credit report can lower the credit score, which is why it is essential to monitor credit reports at regular intervals, identify such errors, and take the necessary precautions to prevent this from occurring.
Income
Bank of India provides high-net-worth individuals with personal loans. Higher income indicates a greater capacity to repay loans, which further reduces banks’ credit risk. Other lenders, like Bank of India, prefer to offer lesser personal loan interest rates to applicants with higher incomes.
Employer
When determining interest rates, the employer profile of loan applicants is frequently considered by many institutions. Personal loans for salaried borrowers typically have lower interest rates than those for self-employed borrowers. Given their greater job and income security, government and public-sector applicants with a salary also receive reduced interest rates. Personal loan applicants employed by MNCs and reputable private sector organisations are also offered lower interest rates, as these organisations are better able to withstand economic downturns than other private sector applicants.
Existing relationship with the lender
Numerous lenders offer personal loans with preferential interest rates to borrowers with existing deposit or lending accounts with them. Those who intend to apply for a personal loan should therefore always contact banks/NBFCs with whom they have an existing banking or lending relationship in order to receive lower interest rates.
Additional Read: 25 Best Instant Personal Loan Apps in India
What are the tips for obtaining low-interest personal loans?
- Maintain a credit score of 750 or above.
- Check for pre-approved personal loan offers from banks and NBFCs.
- Keep track of personal loan interest rates offered by top banks/NBFC, especially during festive seasons.
- Enquire with banks/NBFCs with whom you have deposit or loan accounts.
- Visit online financial marketplaces to check and compare personal loan offers from different banks.
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 5 years. The rate of interest applicable to her loan amount is 14.80% 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.
| Loan Amount | Rs.3 lakh | |||
| Processing Fee | 2% | |||
| Loan Tenure | 5 years or 60 months | |||
| Rate of Interest | 14.80% p.a. | |||
| Month | Principal Paid (A) (Rs.) | Interest Paid (B) (Rs.) | Total Payment (A+B) (Rs.) | Outstanding Loan Balance (Rs.) |
| 1 | 3,406 | 3,700 | 7,106 | 2,96,594 |
| 2 | 3,448 | 3,658 | 7,106 | 2,93,147 |
| 3 | 3,490 | 3,615 | 7,105 | 2,89,657 |
| 4 | 3,533 | 3,572 | 7,105 | 2,86,124 |
| 5 | 3,577 | 3,529 | 7,106 | 2,82,547 |
| 6 | 3,621 | 3,485 | 7,106 | 2,78,926 |
| 7 | 3,665 | 3,440 | 7,105 | 2,75,261 |
| 8 | 3,711 | 3,395 | 7,106 | 2,71,550 |
| 9 | 3,756 | 3,349 | 7,105 | 2,67,794 |
| 10 | 3,803 | 3,303 | 7,106 | 2,63,991 |
| 11 | 3,850 | 3,256 | 7,106 | 2,60,142 |
| 12 | 3,897 | 3,208 | 7,105 | 2,56,244 |
| 13 | 3,945 | 3,160 | 7,105 | 2,52,299 |
| 14 | 3,994 | 3,112 | 7,106 | 2,48,305 |
| 15 | 4,043 | 3,062 | 7,105 | 2,44,262 |
| 16 | 4,093 | 3,013 | 7,106 | 2,40,169 |
| 17 | 4,143 | 2,962 | 7,105 | 2,36,026 |
| 18 | 4,195 | 2,911 | 7,106 | 2,31,831 |
| 19 | 4,246 | 2,859 | 7,105 | 2,27,585 |
| 20 | 4,299 | 2,807 | 7,106 | 2,23,287 |
| 21 | 4,352 | 2,754 | 7,106 | 2,18,935 |
| 22 | 4,405 | 2,700 | 7,105 | 2,14,530 |
| 23 | 4,460 | 2,646 | 7,106 | 2,10,070 |
| 24 | 4,515 | 2,591 | 7,106 | 2,05,555 |
| 25 | 4,570 | 2,535 | 7,105 | 2,00,985 |
| 26 | 4,627 | 2,479 | 7,106 | 1,96,358 |
| 27 | 4,684 | 2,422 | 7,106 | 1,91,674 |
| 28 | 4,742 | 2,364 | 7,106 | 1,86,933 |
| 29 | 4,800 | 2,306 | 7,106 | 1,82,133 |
| 30 | 4,859 | 2,246 | 7,105 | 1,77,274 |
| 31 | 4,919 | 2,186 | 7,105 | 1,72,354 |
| 32 | 4,980 | 2,126 | 7,106 | 1,67,375 |
| 33 | 5,041 | 2,064 | 7,105 | 1,62,333 |
| 34 | 5,103 | 2,002 | 7,105 | 1,57,230 |
| 35 | 5,166 | 1,939 | 7,105 | 1,52,064 |
| 36 | 5,230 | 1,875 | 7,105 | 1,46,834 |
| 37 | 5,295 | 1,811 | 7,106 | 1,41,539 |
| 38 | 5,360 | 1,746 | 7,106 | 1,36,179 |
| 39 | 5,426 | 1,680 | 7,106 | 1,30,753 |
| 40 | 5,493 | 1,613 | 7,106 | 1,25,260 |
| 41 | 5,561 | 1,545 | 7,106 | 1,19,700 |
| 42 | 5,629 | 1,476 | 7,105 | 1,14,070 |
| 43 | 5,699 | 1,407 | 7,106 | 1,08,372 |
| 44 | 5,769 | 1,337 | 7,106 | 1,02,603 |
| 45 | 5,840 | 1,265 | 7,105 | 96,763 |
| 46 | 5,912 | 1,193 | 7,105 | 90,851 |
| 47 | 5,985 | 1,120 | 7,105 | 84,866 |
| 48 | 6,059 | 1,047 | 7,106 | 78,807 |
| 49 | 6,134 | 972 | 7,106 | 72,673 |
| 50 | 6,209 | 896 | 7,105 | 66,464 |
| 51 | 6,286 | 820 | 7,106 | 60,178 |
| 52 | 6,363 | 742 | 7,105 | 53,815 |
| 53 | 6,442 | 664 | 7,106 | 47,373 |
| 54 | 6,521 | 584 | 7,105 | 40,852 |
| 55 | 6,602 | 504 | 7,106 | 34,250 |
| 56 | 6,683 | 422 | 7,105 | 27,567 |
| 57 | 6,766 | 340 | 7,106 | 20,801 |
| 58 | 6,849 | 257 | 7,106 | 13,952 |
| 59 | 6,933 | 172 | 7,105 | 7,019 |
| 60 | 7,019 | 87 | 7,106 | 0 |
Ms. Michelle Talreja will be paying off EMIs of Rs.7,105 or Rs.7,106 for 60 months, i.e. till the month of May 2024. She will be paying off a total amount of Rs.4,32,331, wherein the interest amount of Rs.1,26,331 and processing fee worth Rs.6,000 is included.
2. Ms. Carolina Diniz, a resident of Bengaluru, draws a monthly salary of Rs.50,000. She has availed a personal loan of Rs.5 lakh through Bank of India (BOI). The loan repayment tenure for the loan is 5 years. The rate of interest charged by the bank on the loan amount is 12.90% p.a. The amortisation schedule for Ms. Carolina’s loan has been given below:
For a salary of Rs.50,000 per month
| Loan Amount | Rs.5 lakh | |||
| Processing Fee | 2% | |||
| Loan Tenure | 5 years or 60 months | |||
| Rate of Interest | 12.90% p.a. | |||
| Month | Principal Paid (A) (Rs.) | Interest Paid (B) (Rs.) | Total Payment (A+B) (Rs.) | Outstanding Loan Balance (Rs.) |
| 1 | 5,976 | 5,375 | 11,351 | 4,94,024 |
| 2 | 6,040 | 5,311 | 11,351 | 4,87,984 |
| 3 | 6,105 | 5,246 | 11,351 | 4,81,879 |
| 4 | 6,171 | 5,180 | 11,351 | 4,75,708 |
| 5 | 6,237 | 5,114 | 11,351 | 4,69,471 |
| 6 | 6,304 | 5,047 | 11,351 | 4,63,167 |
| 7 | 6,372 | 4,979 | 11,351 | 4,56,795 |
| 8 | 6,440 | 4,911 | 11,351 | 4,50,354 |
| 9 | 6,510 | 4,841 | 11,351 | 4,43,845 |
| 10 | 6,580 | 4,771 | 11,351 | 4,37,265 |
| 11 | 6,650 | 4,701 | 11,351 | 4,30,615 |
| 12 | 6,722 | 4,629 | 11,351 | 4,23,893 |
| 13 | 6,794 | 4,557 | 11,351 | 4,17,099 |
| 14 | 6,867 | 4,484 | 11,351 | 4,10,232 |
| 15 | 6,941 | 4,410 | 11,351 | 4,03,291 |
| 16 | 7,016 | 4,335 | 11,351 | 3,96,275 |
| 17 | 7,091 | 4,260 | 11,351 | 3,89,184 |
| 18 | 7,167 | 4,184 | 11,351 | 3,82,017 |
| 19 | 7,244 | 4,107 | 11,351 | 3,74,773 |
| 20 | 7,322 | 4,029 | 11,351 | 3,67,450 |
| 21 | 7,401 | 3,950 | 11,351 | 3,60,050 |
| 22 | 7,480 | 3,871 | 11,351 | 3,52,569 |
| 23 | 7,561 | 3,790 | 11,351 | 3,45,008 |
| 24 | 7,642 | 3,709 | 11,351 | 3,37,366 |
| 25 | 7,724 | 3,627 | 11,351 | 3,29,642 |
| 26 | 7,807 | 3,544 | 11,351 | 3,21,835 |
| 27 | 7,891 | 3,460 | 11,351 | 3,13,943 |
| 28 | 7,976 | 3,375 | 11,351 | 3,05,967 |
| 29 | 8,062 | 3,289 | 11,351 | 2,97,905 |
| 30 | 8,148 | 3,202 | 11,350 | 2,89,757 |
| 31 | 8,236 | 3,115 | 11,351 | 2,81,521 |
| 32 | 8,325 | 3,026 | 11,351 | 2,73,196 |
| 33 | 8,414 | 2,937 | 11,351 | 2,64,782 |
| 34 | 8,505 | 2,846 | 11,351 | 2,56,278 |
| 35 | 8,596 | 2,755 | 11,351 | 2,47,682 |
| 36 | 8,688 | 2,663 | 11,351 | 2,38,993 |
| 37 | 8,782 | 2,569 | 11,351 | 2,30,212 |
| 38 | 8,876 | 2,475 | 11,351 | 2,21,335 |
| 39 | 8,972 | 2,379 | 11,351 | 2,12,364 |
| 40 | 9,068 | 2,283 | 11,351 | 2,03,296 |
| 41 | 9,166 | 2,185 | 11,351 | 1,94,130 |
| 42 | 9,264 | 2,087 | 11,351 | 1,84,866 |
| 43 | 9,364 | 1,987 | 11,351 | 1,75,503 |
| 44 | 9,464 | 1,887 | 11,351 | 1,66,038 |
| 45 | 9,566 | 1,785 | 11,351 | 1,56,472 |
| 46 | 9,669 | 1,682 | 11,351 | 1,46,803 |
| 47 | 9,773 | 1,578 | 11,351 | 1,37,030 |
| 48 | 9,878 | 1,473 | 11,351 | 1,27,153 |
| 49 | 9,984 | 1,367 | 11,351 | 1,17,169 |
| 50 | 10,091 | 1,260 | 11,351 | 1,07,077 |
| 51 | 10,200 | 1,151 | 11,351 | 96,877 |
| 52 | 10,310 | 1,041 | 11,351 | 86,568 |
| 53 | 10,420 | 931 | 11,351 | 76,147 |
| 54 | 10,532 | 819 | 11,351 | 65,615 |
| 55 | 10,646 | 705 | 11,351 | 54,969 |
| 56 | 10,760 | 591 | 11,351 | 44,209 |
| 57 | 10,876 | 475 | 11,351 | 33,334 |
| 58 | 10,993 | 358 | 11,351 | 22,341 |
| 59 | 11,111 | 240 | 11,351 | 11,230 |
| 60 | 11,230 | 121 | 11,351 | 0 |
Ms. Carolina will be paying off a monthly EMI amount of Rs.11,351 for a tenure of 60 months to repay her loan completely. The total amount that she would be paying off by the end of the tenure is Rs.6,91,057. This includes a processing fee of Rs.10,000 and a total interest amount of Rs.1,81,057.
FAQs
1. What are the current Bank of India personal loan interest rates?
As interest rates can change over time, it’s recommended to visit the Bank of India website or contact the nearest branch for the latest interest rate information.
2. How is the Bank of India personal loan interest rate calculated?
The Bank of India calculates personal loan interest rates based on factors such as the loan amount, tenure, applicant’s credit score, and the type of personal loan.
3. Are Bank of India personal loan interest rates fixed or floating?
Bank of India offers both fixed and floating interest rate options for personal loans. Applicants can choose the option that suits their preference and financial situation.
4. Can existing Bank of India account holders get a lower interest rate on personal loans?
Yes, existing Bank of India account holders may be eligible for special discounts or lower interest rates on personal loans. It’s advisable to inquire with the bank to know the specific benefits available.
5. What is the minimum and maximum loan amount offered under Bank of India personal loan schemes?
Bank of India offers personal loans with a minimum loan amount of usually INR 10,000, and the maximum loan amount can go up to INR 10 lakhs or more, depending on the applicant’s eligibility.
6. What is the processing fee for a Bank of India personal loan?
The processing fee for Bank of India personal loans typically ranges from 1% to 2% of the loan amount. However, the actual fee may vary, so it’s best to check with the bank.
7. Can self-employed individuals apply for a personal loan from Bank of India?
Yes, both salaried and self-employed individuals are eligible to apply for personal loans from Bank of India, subject to meeting the bank’s eligibility criteria.
8. How can I apply for a Bank of India personal loan online?
You can apply for a Bank of India personal loan online by visiting their official website and filling out the loan application form. Alternatively, you can visit the nearest branch for assistance.
9. What is the repayment tenure for Bank of India personal loans?
The tenure for Bank of India personal loans usually ranges from 12 months to 60 months, providing flexibility for borrowers to choose a suitable repayment period.
10. Can I prepay or foreclose my Bank of India personal loan before the completion of the tenure?
Yes, borrowers can prepay or foreclose their Bank of India personal loan before the tenure ends. However, some banks may charge a prepayment penalty, so it’s essential to inquire about such charges.
11. What is the late payment fee for Bank of India personal loans?
In case of late payment, Bank of India may charge a penalty or late payment fee, which is usually a percentage of the outstanding EMI amount.
12. How can I check the status of my Bank of India personal loan application?
You can track the status of your Bank of India personal loan application either online through their website or by contacting the customer care helpline.
13. Can I transfer my existing personal loan from another bank to Bank of India for a lower interest rate?
Yes, Bank of India may offer the option of a personal loan balance transfer, allowing borrowers to transfer their existing loan to Bank of India for better interest rates and terms.
14. Are Bank of India personal loans available for pensioners?
Yes, Bank of India offers personal loan schemes tailored for pensioners, providing them with financial assistance during their retirement years.
15. What are the eligibility criteria for Bank of India personal loans?
The eligibility criteria for Bank of India personal loans may include age, income, employment status, credit score, and other factors. It’s recommended to check the specific requirements with the bank.
16. Can I use an online EMI calculator to estimate my Bank of India personal loan EMI?
Yes, Bank of India may provide an online EMI calculator on their website, which allows applicants to calculate the EMI based on the loan amount and tenure.
17. Is collateral or security required for Bank of India personal loans?
No, Bank of India personal loans are typically unsecured loans, and hence, no collateral or security is required to apply for them.
18. Can I avail of a top-up loan on my existing Bank of India personal loan?
Yes, Bank of India may offer a top-up loan facility to existing personal loan customers, allowing them to borrow additional funds over and above their existing loan amount.
19. Are Bank of India personal loans available for NRIs (Non-Resident Indians)?
Bank of India may provide personal loan facilities to NRIs, subject to meeting specific eligibility criteria and documentation requirements.
20. Can I apply for a Bank of India personal loan with a co-applicant?
Yes, Bank of India allows applicants to apply for a personal loan with a co-applicant, which can increase the chances of loan approval and may also affect the interest rate.
21. How long does it take for Bank of India to disburse the personal loan amount after approval?
After loan approval, Bank of India typically disburses the loan amount within a few working days. However, the time frame may vary based on the individual case and documentation process.
22. Can I negotiate the interest rate on my Bank of India personal loan?
The interest rates offered by Bank of India are usually non-negotiable. However, existing customers or those with a strong credit history may have better chances of negotiating the interest rate.
23. Can I convert my Bank of India personal loan from a floating rate to a fixed rate or vice versa?
Some banks may offer the option to convert the interest rate type from floating to fixed or vice versa during the loan tenure. It’s advisable to inquire with the bank about such options.
24. What is the average time taken for Bank of India to process personal loan applications?
The average processing time for Bank of India personal loan applications may vary, but it typically takes a few working days, subject to complete documentation.
25. Is it possible to apply for a Bank of India personal loan offline through the branch?
Yes, you can visit the nearest Bank of India branch to apply for a personal loan by filling out the application form and submitting the required documents.
26. Can I get a Bank of India personal loan for debt consolidation purposes?
Yes, Bank of India may provide personal loans for debt consolidation, allowing borrowers to merge multiple debts into a single loan with lower interest rates.
27. Is there a maximum age limit for availing of a Bank of India personal loan?
Yes, the maximum age limit for applying for a Bank of India personal loan is generally 65 years. However, this may vary based on the type of personal loan and the applicant’s profile.
28. Are there any special interest rate offers for female applicants on Bank of India personal loans?
Yes, some banks may offer special interest rate discounts or offers for female applicants on personal loans. It’s advisable to inquire with Bank of India about such benefits.
29. What happens if I miss an EMI payment on my Bank of India personal loan?
If you miss an EMI payment on your Bank of India personal loan, the bank may charge a late payment fee and report the delay to credit bureaus, impacting your credit score.
30. Can I use my Bank of India personal loan for any purpose?
Yes, Bank of India typically provides personal loans for a wide range of purposes, including medical expenses, education, travel, wedding, home renovation, and other personal financial needs. However, it’s always best to check with the bank for specific usage restrictions if any.