Bank of India Personal Loan Eligibility

Bank of India has specific personal loans for self-employed individuals. However, the primary product, BOI Star Personal loan is not available for the general self-employed individuals. It is only available to salaried employees, pensioners, professionals, and HNW individuals.

The BOI Star Personal loan product is available both as a clean as well as a secured loan.

The clean personal loan does not require any collateral. The secured personal loan requires the borrower to furnish adequate collateral. The quantum of the loan in a clean loan is lower than that of a secured loan. Similarly, the rate of interest on the clean loan is higher than that of the secured loan.

Customers can avail the BOI Star Personal Loan for all personal requirements. It includes expenses for marriage, education, medical, and other family functions. The borrower should not use the loan amount for unproductive purposes.

Usually, the pensioner will have a nominee who is eligible to get a family pension. The bank can recover the loan from the family pension of the deceased pensioner. If there is no family pensioner, the guarantor to the loan becomes liable to repay the loan.

A personal loan is a facility where the bank grants loans with or without any security. The purpose of the loan is to meet the domestic emergencies of the borrower. The Reverse Mortgage Loan serves the same purpose. It supplements the income of the senior citizen borrower. Therefore, it qualifies as a personal loan.

In overdraft with reducible limits, the Drawing Power decreases by the EMI amount every month. It ensures that the borrower closes the demand loan at the end of the repayment tenure.

The nature of the account is such that the borrower can deposit his/her surplus funds into the account. On doing so, the outstanding balance reduces considerably, thereby saving interest for the borrower.

It depends on the bank's classification. Usually, persons with an average gross annual income of more than Rs. 1 crore qualify as HNW individuals.

Any tangible security in the name of the borrower is acceptable as security in a secured personal loan. It should be marketable and easily realisable. The ideal securities are Bank of India FDs, LIC policies having sufficient surrender value, NSCs, and KVPs.