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Bank of India Personal Loan Review: BOI Interest Rate, Eligibility

Bank of India personal loans are best suited to pensioners, physically-challenged borrowers, and those who require personal funding amidst the COVID-19 pandemic.

Bank of India Personal Loan Review: BOI Interest Rate, Eligibility

Bank of India personal loans are best suited to pensioners, physically-challenged borrowers, and those who require personal funding amidst the COVID-19 pandemic.

Editor's Rating

4.0/5.0

Good for

  • Senior citizens, physically-challenged borrowers, and salary account holders
  • Borrowers seeking a small personal loan of Rs. 10,000
  • Borrowers who want the option of a secured personal loan

Bad for

  • Borrowers seeking a large personal loan above Rs. 10 lakhs
  • Self-employed borrowers with low income
  • Borrowers seeking a long loan tenure
  • Borrowers who want an online application process

Bank of India offers a range of personal loans, including loan schemes that are tailored to pensioners, physically-challenged borrowers, and salary account holders in need of funding during the COVID-19 pandemic. Depending on your eligibility, BOI interest rates start as low as 6.85%. However, most unsecured personal loan interest rates at Bank of India begin at 12.35%, which is comparably higher than most other banks. Thus, If you are seeking a small personal loan and also match BOI's eligibility criteria, then the Bank of India personal loan is a good option to consider.

Summary of Bank of India Personal Loans
Low interest rates for pensioners, physically-challenged borrowers and salary account holders
Interest rates for other borrowers start at 12.35%
Loan term maximum of 3 to 5 years
Small personal loans available

Table of Contents

What Makes Bank of India Personal Loans Stand Out to Borrowers

Unlike most lenders, Bank of India offers both unsecured and secured personal loans, as well as loan schemes for borrowers affected by the COVID-19 pandemic. In the table below, you can find each BOI personal loan scheme and features that make them stand out amongst the rest.

Bank of India Loan SchemeFeatures
BOI Unsecured Personal Loan
  • No collateral needed.
  • Interest rates starting at 12.35%.
  • Loan tenure is up to 3 years, or 5 years in case of exception.
BOI Secured Personal Loan
  • Collateral can be used.
  • Interest rates starting at 11.35%.
  • Longer loan tenures up to 5 years.
BOI Star Pensioner Loan Scheme
  • For pensioners up to the age of 75.
  • Interest rates starting at 10.35%.
  • Maximum loan quantum of Rs. 5 lakhs.
  • No processing fee.
BOI COVID-19 Personal Loan
  • For salary account holders and BOI customers.
  • Interest rates starting at 6.85%.
  • 3 year tenure and 6 months moratorium.
  • No processing fee.
BOI Star Mitra Personal Loan
  • For physically-challenged borrowers.
  • Interest rates starting at 8.75%.
  • Maximum loan quantum of Rs. 1 lakh.
  • No processing fee.

Bank of India Personal Loan Interest Rates

Bank of India has high interest rate of 12.35% unless you are eligible for a personal loan scheme.
Bank of India has high interest rate of 12.35% unless you are eligible for a personal loan scheme.

Bank of India's unsecured personal loan — the BOI Star Personal Loan — charges interest rates from 12.35% and up, which is one of the highest personal loan interest rates amongst the banks that our financial analysts reviewed. However, it's possible to avail much lower interest rates if you are eligible for a BOI personal loan scheme.

Below, you will find the different rates of interest that Bank of India advertises on their website.

Bank of India Loan SchemeMinimum Interest Rate
BOI Unsecured Personal Loan12.35%
BOI Secured Personal Loan11.35%
BOI Personal Loan for Senior Citizens10.35%
BOI Star Pensioner Loan9.35%
BOI Star Mitra Personal Loan8.75%
BOI COVID-19 Personal Loan6.85%

With a BOI secured personal loan, you are eligible for interest rates as low as 11.35%. However, you would need to put down collateral in exchange for personal funding.

Accepted Collateral for BOI Personal Loan

  • Gold or gold ornaments
  • NSC or Indira Vikas Patra
  • Bonds
  • Assignment of LIC policies
  • Relief Bonds

Senior citizens and pensioners will find the best BOI interest rates, which start at 9.35%, and are the lowest rates offered to pensioners amongst all the banks we analysed. If you are 60 years old or above, you should consider Bank of India for your personal financing needs.

The BOI Star Mitra Personal Loan is dedicated to supporting physically-challenged borrowers, and likewise, offers very generous interest rates of 8.75% and up. Similarly, the BOI COVID-19 personal loan charges rates as low as the repo rate — currently 6.85% — for salary account holders who are in need of funding during the pandemic.

Bank of India Personal Loan Eligibility Criteria

Consider this if you seek a BOI personal loan

Min. Loan Amount Rs. 10,000
Max. Loan Amount Rs. 10 lakh
Processing Fee 2.00%
Interest Rate Type Floating
Loan Tenure 36 months

Bank of India requires borrowers to be a customer of the bank, or in others words, hold a salary account with BOI. This is not unusual, as many banks prefer to lend to borrowers who they already have a relationship with.

To be eligible for a BOI personal loan, you should be a salaried employee, pensioner, or self employed professional with a high net worth. Bank of India does not advertise its income requirement, but it does share personal loan eligibility per job position, as seen below:

Salaried BorrowerSelf Employed Borrower
Unsecured Personal Loan10 times monthly take home pay50% of gross annual income per last income tax return
Secured Personal Loan20 times monthly take home pay100% of gross annual income per last income tax return

Nonetheless, the maximum BOI loan amount that you can avail is Rs. 10 lakhs, while minimum loan amounts vary depending on where you are located. For instance, if you live in a metro or urban center like New Delhi, you can borrow as little as Rs. 10,000. For borrowers in rural or semi urban centers, there is no minimum loan amount.

Finally, your Bank of India personal loan tenure is determined by the type of loan you apply for. BOI unsecured loans have a loan term maximum of 3 years, or 5 years in exceptional cases, while all BOI secured loans have a loan term maximum of 5 years. If you are seeking an unsecured loan, you will find longer loan tenures at HDFC or SBI, amongst many other banks with a loan term maximum of 4 years or more.

Read More: HDFC Personal Loan Review | SBI Personal Loan Review

Bank of India Personal Loan Processing Fee and Other Charges

Bank of India charges a standard processing fee of 2.00% of the total loan amount, with a minimum of Rs. 1000 and maximum of Rs. 10,000. However, your processing fee will be waived if you fall under one of the following categories:

  • Senior Citizen (above 60 years old)
  • BOI Pensioner Loan
  • BOI COVID-19 Personal Loan
  • BOI Star Mitra Personal Loan

Bank of India Personal Loan: Apply

You can apply for a COVID-19 personal loan online, but all other BOI personal loans have an in-person application process. Unfortunately, the lender does not provide a list of personal loan required documents.

Bank of India Personal Loan Customer Care

To find out more about the Bank of India personal loan application process, you should visit the nearest BOI branch for details or call one of the numbers below.

Natalia Sanchez-Kumar

Natalia Sanchez-Kumar is a Junior Research Analyst at ValueChampion, specialising in loans in India. She is a History graduate of New York University and has worked in the area of social impact, Future of Work and socio-technological research in the US and India. She has co-authored policy proposals alongside the International Labour Organisation in Sri Lanka and the Maldives, as well as hosted a data privacy conference with Facebook in New Delhi.