Indian Overseas Bank (IOB) Personal Loan Eligibility

IOB Personal Loan Eligibility Criteria

IOB Passion Personal Loan Eligibility Criteria

IOB Special Personal Loan HNI VIP Eligibility Criteria

Other Eligibility Criteria for IOB Personal Loans

IOB has a common requirement for all the personal loans it offers. This is regarding the security or collateral they accept for these loans. For all the three loans, the bank will hypothecate the product you buy. The bank will also accept a guarantee made by a suitable third party.

Factors Affecting IOB Personal Loan Eligibility

1. Age: Each loan offered the bank caters to a specific age group. There is a minimum age and a maximum age. The maximum age relates to the age of the individual at the time of the maturity of the loan.
2. Type of individual: Some loans are available only to specific types of people. For example, the IOB Passion loan is available only to those who are passionate about sports, music, arts, etc. and have the necessary skills for the same. People interested in making such activities their hobbies are also allowed to borrow money under this loan.
3. Monthly Income: How much you earn every month has a bearing on your loan eligibility. While normal loans are available to all individuals who earn above a certain low-income limit, there are loans set apart for high net worth persons who earn a high level of income.
4. Job stability: Sometimes, IOB may require you to prove that you've been working with one organisation for at least a year or two. This indicates the stability of your job. A stable job means a stable monthly income. This means that you have the financial stability to repay the loan if you take it.
5. Security or collateral: To take one of these IOB loans, you need to offer collateral. This could be in the form of a third-party guarantee or you can hypothecate the product you are buying.
6. Credit score: If you're looking to get favourable loan terms, you need to have a good or an excellent score. The bank will hesitate to give you a loan if your credit score is average or low. A low score is an indication of high loan-default risk. Having a score of at least 750 or more can help you get certain benefits in the form of lower interest rates, better repayment options, etc.

How to Improve Your Chances of Getting an IOB Personal Loan

1. Try and improve your credit score: As we mentioned earlier, your credit score plays a very important role in determining your loan eligibility. So, check your score before you apply. If you find that your score is below 750, you should work on improving it. Improving your credit score will boost your chances of successfully getting the loan. Start by paying your EMIs on time and utilising your credit limit wisely.
2. Apply when you have a higher income: Although each loan option has its own income criteria, banks prefer to grant loans to people who earn a higher income. Your age and income play a role in this. People in their late twenties may finder it easier to get a loan than those who are just starting their careers. The higher your income and work experience, the better your approval chances are.
3. Lower your debt-to-income ratio: This refers to how much of your income is going towards paying off current loans. The more you spend on repaying loans, the higher this ratio will be. IOB may not give you a loan if this ratio is high. If it is more than 40% or 0.40, you should look at reducing it by paying off some loans before you apply.

IOB Personal Loan Details

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