The bank has waived loan processing charges and will provide home loan at concessional rates, BoI general manager Salil Kumar Swain said
State-owned Bank of India (BoI) under its festive offer for retail products is offering home loans at a concessional interest rate with no loan processing charges to woo customers.
The bank has waived loan processing charges and will provide home loan at concessional rates, BoI general manager Salil Kumar Swain said.
Home loan of up to Rs 30 lakh would be available at 8.35% while loan above Rs 30 lakh would be linked to the repo rate, he said.
At the same time, the bank offering education loan at a competitive rate, he added.
The bank has also launched an SME welcome offer, he said, adding, loans between Rs 50 and Rs 5 crore would be available at a concessional rate depending on the value of a security.
Last month, the country’s largest lender State Bank of India (SBI) announced several offers including cheaper rates for home and auto loan borrowers, to cash in on festival fervour.
Customers can avail cheaper loans with added benefits such as waiver in processing fees, pre-approved digital loans and loans with no escalation in interest rates spread across various categories, SBI had said.
Bank Of India Loan Interest Rate:
The bank offers personal loans at an interest rate of 12% to 14.50%. The maximum loan amount that can be availed is Rs. 10 lakh. This loan can be paid back over a maximum period of 5 years. A processing fee of 2% plus applicable taxes is charged on the loan amount.
Bank of India offers two different personal loan schemes – Mitra Loan and Pensioner Loan scheme. The interest rates on these loans are:
Factors Affecting Bank Of India Personal Loan Interest Rates:
- Repayment Capacity: Banks will check the credit rating of the individual in order to ascertain their eligibility for the loan. Applicants with a poor repayment track record will find it difficult to get a loan sanctioned. Applicants with average credit scores may still get approval for their loan albeit with a higher rate of interest.
- Relationship with the Bank: Existing applicants are generally given priority and are offered loans at attractive interest rates. Also, individuals who share a good rapport along with good payment records and decent banking activity with the bank can avail loans at lower interest rates.
- Loan Tenure: The loan tenure plays a significant part in determining the interest rate offered to the applicant. Short period loans usually have higher interest rates when compared to loans with longer tenures.