Indian Bank Personal Loan Eligibility

To meet the Indian Bank Personal Loan eligibility criteria, the borrower must be a salaried individual aged 21 years or above. Applicants should be permanent employees with a minimum experience of 2 years with a government or private sector company. 


Indian Bank Personal Loan Eligibility Criteria 

Here are the detailed eligibility criteria for Indian Bank Personal Loan according to the loan scheme:

Eligibility Criteria for IB Clean Loan:

  • Applicants should be salaried, working with Government/ Quasi Government/ Endowments/ Boards/ Corporate Industrial Establishments/ Reputed Companies.
  • The minimum take-home pay must be 40% of the applicant’s gross salary after deducting the proposed EMI.
  • The minimum age required is 21 years and maximum is 60 years.
  • Applicants must have a minimum of 2 years of work experience.
  • Applicants must provide security in the form of employer's sponsorship, third party guarantee, encashable collateral security, authorisation to debit SB account, or post dated cheques.
  • Indian Bank Personal Loan requires a good CIBIL score, preferably more than 700.

Eligibility Criteria for IB Pension Loan:

  • Applicants must be Central or State Government pensioner, family pensioner, re-employed pensioner, or Indian Bank retiree (under VRS or superannuation) whose pension accounts are held with Indian Bank's branch.
  • CRS retirees and EPF pensioners are not eligible for the loan.
  • Age requirement:
    • Regular Pensioner: Maximum entry level age is 75 years and maximum exit level age is 78 years.
    • Family Pensioner: Maximum entry level age is 70 years and maximum exit level age is 73 years.
  • Applicants must provide the guarantee of the spouse (or legal heir/family member/third party acceptable by the bank, if there is no spouse).

 Eligibility Criteria for IB Home Loan Combo:

  • Applicants must be salaried who have already availed of a Home Loan (either individually or jointly) from Indian Bank and has repaid the same satisfactorily for at least 3 years after holiday period
  • Applicants should have created an equitable mortgage.
  • Applicants should have maintained a security margin of at least 15% for house/ plot purchase or house construction.
  • Applicants must have been regular with the Home Loan repayment.

Indian Bank Personal Loan Features 

Loan amountUp to 20 times of monthly gross salary
Rate of interest10%
TenureUp to 84 months
Lowest EMI possibleRs. 1,611 Per Lakh
Processing fee1% of the approved loan amount
Minimum CIBIL score700
GuaranteeGuarantee of spouse (if applicable) & another employee
Minimum entry age21 years

Benefits of Indian Bank Personal Loan

The benefits of Indian Bank personal loans are as follows.

  • Available for meeting domestic emergencies like medical expenses, educational needs, and so on
  • The bank does not question the reason for availing the personal loan.
  • Indian Bank has a transparent pricing policy where they charge competitive rates of interest.
  • Indian Bank has a simplified loan application procedure with relaxed eligibility norms.
  • The bank charges affordable processing fees.

Indian Bank Personal Loans without Collateral

Loan ProductIdeal forMaximum LoanInterest RateLoan tenure
IB Clean Loan to Salaried ClassFor meeting all personal requirementsDepending on the income and repaying capacity9.05% to 13.65%84 months
IB Pension LoanMeet the individual needs of pensioners6 Lakhs10.60% to 11.75%60 months
IND COVID-Emergency Salary Loan (IBCESL)To meet emergency financial demands of COVID-19-affected salaried customers2 Lakhs9.50%36 months
IND COVID-Emergency Pension Loan (IBCEPL)To meet the emergency financial demands of COVID-19-affected pensioners2 Lakhs8.75%36 months

Indian Bank Personal Loans with Collateral 

Loan ProductIdeal forMaximum LoanInterest RateLoan tenure
Loan/OD against depositsMeeting all kinds of personal requirements90% of the value of the deposit10.30% - 10.80%Within the deposit maturity period
Loan/OD against NSC, KVP, LIC Policies, RBI Relief BondsFor personal consumption75% of the value of the security10.95%Maximum of 6 years
Ind MortgagePersonal and Business requirements40% to 50% of the value of the property11.05%84 months
IB Home Loan PlusBonafide needs of HL borrowers60 Lakhs9.15% to 9.65%120 months
IB Rent EncashPersonal or business requirements5 Crores10.80%120 months
IB Reverse MortgageMeet the needs of senior citizens40 Lakhs9.40%15 years with a rollover period

Indian Bank Personal Loan Interest Rate

Indian Bank links the personal loan interest rates to the repo rates announced by the Reserve Bank of India. As on date, the repo rate is 4%. 

IB Clean Loan to Salaried Class
  • Availability of check-off facility: 9.05% - 9.20%
  • No check-off facility but the salary is credited to the Indian Bank account: 9.65% - 9.80%
  • If salary is credited to Indian Bank (For housing loan customers who are salaried class): 9.05% - 9.20%
  • For tenure above 60 months and up to 84 months: 13.50% - 13.65%
IB Pension Loan
  • Repayment tenure up to 12 months: 10.60% - 11.75%
  • Repayment tenure > 12 months and up to 36 months: 11.35% - 11.50%
  • Repayment tenure more than 36 months and up to 120 months: 11.60% - 11.75%
IB Loan/OD against Deposit
  • Against INR Deposit: 10.80%
  • Against FCNRB Deposit: 10.30% - 10.80%
  • Loan against Own Deposit (INR): 1% over the Respective Deposit Rate
IB Loan/OD against NSC, KVP, LIC Policies, and RBI Relief Bonds10.95%
IB Rent Encash10.25% - 10.40%
Ind Mortgage10.50% - 10.65%

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Indian Bank Personal Loan Eligibility FAQs

Does Indian Bank offer personal loans to non-salaried employees?


Yes, Indian Bank has a personal loan product for non-salaried employees having the necessary repayment capacity. The condition is that these persons should have a regular and documented source of income.

What is the check-off facility?


The check-off facility is one where the employer deducts the EMI amount from the salary due to the employee and deposits it into the bank.

Can a person drawing his/her pension through other banks avail a personal loan from Indian Bank?


No, such a person is not eligible for availing a personal loan from Indian Bank.

Can I avail a personal loan for purchasing jewellery?


Yes, an individual can avail a personal loan for jewellery, provided it is for personal consumption and not for speculative use. An individual cannot invest in bullion by availing a personal loan.

Should I submit a declaration that the personal loan is for non-speculative purposes?


Yes, a borrower should undertake that the personal loan will not be utilised for illegitimate or speculative purposes.

What expenses count as speculative purposes?


Any investment made to earn a quick and unnatural profit is speculation. Investing in shares or bullion is speculative. Playing online lottery games or gambling is also risky.

Can a jewellery store owner pledge his/her gold ornaments to avail loan against gold jewellery?


Usually, banks do not allow jewellery store or pawnshop owners to avail gold loans from them.

What factors determine the rate of interest on the Indian Bank personal loan?


The factors that determine the interest rate on personal loans are,

  • Occupation of the borrower
  • Quantum of the loan
  • Repayment tenure
  • Nature of security provided

What constitutes a clean loan?


Any loan that does not come with collateral or prime security is a clean loan. Usually, banks sanction personal loans without collateral based on the income and repaying capacity of the borrower.

Does the credit rating have any bearing on personal loans?


Yes, Indian Bank does not offer personal loans, especially the clean ones to applicants with low CIBIL scores. The general qualifying criterion is that the applicant should have a minimum CIBIL score of 650 to 700. Some banks have a higher threshold level.