Indian Bank Personal Loan Interest Rate

Personal loans can be an effective choice for fulfilling your financial needs and objectives. Many kinds of personal loan choices are available from Indian Bank, a trusted finance brand in the banking industry, to satisfy different needs. We are going to explore the details of Indian Bank’s personal loan interest rates for 2023 in this post so that you can make a smart decision regarding your financial requirements.

Indian Bank Personal Loan Details

Let’s begin by exploring the interest rates offered by Indian Bank for different types of personal loans:

Indian Bank Personal Loan Interest Rate Details

Loan TypeEligibilityInterest Rate RangeProcessing Fees
Pre-Approved Personal LoanMonthly net salary > ₹25,00012.40% onwardsAs per Bank’s decision
Age: 21-78
CIBIL Score > 750
IB Clean Loan (Personal Loan)Government, State Government,10% – 10.15%1% of the loan amount
and Private Employees
IB Saral10.60%
IB Professional10.25% – 10.50%
IB Insta Cash10.25% onwards
Pension LoanLoan for Pensioners11.15% – 11.40%₹250 + GST

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Types of Indian Bank Personal Loan

  1. Pre-Approved Personal Loan
    • Eligibility: Monthly net salary above ₹25,000.
    • Age: 21-78.
    • CIBIL Score: Above 750.
    • Processing fees: As per the Bank’s decision.
  2. IB Clean Loan (Personal Loan)
    • Eligibility: Loan amount sanctioned 20x for total monthly net salary.
    • Age: 21-78.
    • Someone Guarantee is required in some cases.
    • Processing fees: 1% of the loan amount.
  3. Pension Loan
    • Eligibility: Loan amount sanctioned 15x for total monthly net salary.
    • Age: 21-78.
    • Someone Guarantee is required in some cases.
    • Processing fees: ₹250 + GST.

How Indian Bank Personal Loan Interest Rate Compares with Other Lenders

Before finalizing your personal loan application, it’s crucial to compare Indian Bank interest rate with those offered by other banks and non-banking financial companies (NBFCs). Here’s a comparison of Indian Bank’s interest rates with some other prominent lenders:

Banks/NBFCsInterest Rates (p.a.)
SBI10.30% – 15.10%
HDFC Bank11.00% onwards
ICICI Bank10.75% onwards
Axis Bank10.25% onwards
IndusInd Bank10.49% onwards
Kotak Mahindra Bank10.99% onwards
IDFC First Bank10.75% onwards
Tata Capital10.99% onwards
Federal Bank11.49% onwards
Bajaj Finserv13.00% onwards
DMI Finance12.00% – 40.00%
L&T Finance12.00% onwards
Kreditbee12.25% – 30.00%
MoneyTap12.96% onwards
Piramal Finance12.99% onwards
Aditya Birla13.00% onwards
MoneyView15.96% onwards
Cashe27.00% onwards

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Tips to Avail a Personal Loan at a Lower Interest Rate

To secure a personal loan at a lower interest rate, consider the following tips:

  1. Maintain a high credit score by paying bills and EMIs on time and avoiding excessive credit applications.
  2. Review your credit report regularly to correct any errors that could negatively impact your credit score.
  3. Increase your income and reduce existing debts to improve your debt-to-income ratio.
  4. Leverage your existing relationship with the lender, such as a salary account or other accounts, to negotiate a better rate.

Factors Affecting Indian Bank Personal Loan Interest Rate

Factors That Impact Indian Bank Personal Loan Interest Rates Several factors can affect the interest rates you are offered when applying for a personal loan from Indian Bank:

  1. Occupation and Employer: Your job and where you work play a significant role in determining your eligibility and interest rate. Typically, individuals with salaried positions in government and public sector organizations enjoy lower interest rates because of the stability and security these jobs offer.
  2. Income: Although Indian Bank does not provide specific interest rates based on income, lenders generally offer lower rates to individuals with higher incomes. A higher income signifies a greater ability to repay the loan, making you a more attractive borrower.
  3. Existing Relationship with the Indian Bank: Indian Bank offers special interest rates to existing housing loan customers who have their salaries deposited with the bank. Similarly, other lenders may provide lower interest rates to customers with established relationships, such as savings or fixed deposit accounts Establishing a good connection with your bank might make it possible to get better loan conditions.
  4. Credit Score: Indian Bank has set a minimum credit score requirement of 700 for personal loan applicants. However, having a higher credit score often results in more favorable interest rates. Maintaining a good credit score by responsibly managing your financial commitments is essential.

Indian Bank Personal Loan Eligibility

Eligibility criteria for Indian Bank’s personal loans vary depending on the loan type:

For IB Clean Loan (To Salaried Class):

  • You should have a stable job either with the government, state government or in a private company.
  • Must be employed for at least three years before applying for the loan.
  • Must earn a minimum take-home salary of 40% of the gross salary following the servicing of the proposed EMI.

For IB Pension Loan:

  • Central and State Government employees, family pensioners, pensioners who are re-employed, and former employees of Indian Bank now retired can avail this loan.
  • You can start applying for this loan when you are up to 75 years old, and you should finish paying it back by the time you’re 78 years old.

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Documents Required for Indian Bank Personal Loan Interest rate

When applying for a personal loan from Indian Bank, certain documents are needed to verify your eligibility and financial capability. Here is a list of documents that banks typically require:

  1. Passport-Size Photographs: You’ll need 2-3 recent passport-size photographs to include with your loan application.
  2. Identity Proof: Provide any one of the following identity documents:
    • Aadhaar card
    • PAN Card (Permanent Account Number)
    • Driving License
    • Passport
  3. Address Proof: Choose one of the following as proof of your address:
    • Voter ID
    • Ration Card
    • Passport
    • Electricity Bill
    • Landline Bill
  4. Employment Proof: To show that you are employed, furnish any of the following documents:
    • Employee ID
    • Employee order
    • Photo ID
  5. Income Proof: Demonstrate your income with one of the following:
    • FORM 16 (for salaried individuals)
    • Latest Salary Slip
    • Income Tax Returns (ITR) for the last three years
    • Audited account statement of the last three months (for self-employed individuals)
  6. Other Relevant Documents: Depending on your specific situation and the type of personal loan you are applying for, you may need additional documents such as:
    • Post-dated cheques
    • Guarantee by a third party
    • Form of Loan Application
    • PPO Pensioners portion (if applying for an IB Pension Loan)
    • RBI Relief Bond
    • Original National Savings Certificate (NSC)
    • LIC Policy, and more.

Indian Bank Personal Loan Online Application

You can conveniently apply for an Indian Bank personal loan online through their official website or by visiting your nearest branch. The online application process is user-friendly and provides quick access to loan approvals. Below are provided both steps.

Online Process

  1. Visit the Indian Bank website and go to the Personal Loan page.
  2. Click on the Apply Now button.
  3. Fill in the required details such as your name, date of birth, contact information, employment details, and income details.
  4. Upload the required documents, such as your Aadhaar card, PAN card, salary slips, and bank statements.
  5. Submit the application form.
  6. You will receive a loan offer from Indian Bank. If you are satisfied with the offer, you can accept it and sign the loan agreement online.
  7. Once the loan agreement is signed, the loan amount will be disbursed into your bank account.

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Offline Process

  1. Visit your nearest Indian Bank branch.
  2. Meet a loan officer and express your interest in applying for a personal loan.
  3. The loan officer will give you an application form and explain the required documents.
  4. Fill in the application form and submit it along with the required documents.
  5. The loan officer will verify your documents and process your application.
  6. Once your loan is approved, you will receive a loan offer. If you are satisfied with the offer, you can accept it and sign the loan agreement.
  7. Once the loan agreement is signed, the loan amount will be disbursed into your bank account.

Indian Bank Personal Loan Interest Rate for Salary Account

When applying for a personal loan, you could be eligible for lower interest rates from 10% to 12.40% if you hold a salary account with Indian Bank. Your chances of getting a loan at a favorable rate rise if you have a salary account with the bank which shows that you are financially stable.

Minimum Salary Required for Indian Bank Personal Loan 

To be eligible for a personal loan from Indian Bank, you need a minimum monthly salary of ₹20,000. However, if you have a salary account with Indian Bank, you can avail a loan amount of up to 20 times your monthly salary, ensuring you access to a minimum of ₹4 lakh.

Other Fees and Charges for Indian Bank Personal Loan

In addition to the interest rates and processing fees, it’s essential to be aware of any other charges associated with Indian Bank personal loans. These expenses could include documentation fees, penalty fees for late-payments and prepayment penalties. A complete list of fees and charges is available on the bank’s official website.

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Indian Bank offers competitive personal loan interest rates for 2023, catering to various financial needs. Understanding the eligibility criteria, documentation requirements, and factors affecting interest rates is essential to make an informed borrowing decision. By following the tips mentioned above, you can enhance your chances of securing a personal loan at a lower interest rate, ensuring that your financial goals are within reach.

Suggested Read: Floating Interest rate Vs Fixed Interest rate 

 FAQs related to Indian Bank Personal Loan Interest Rate

Q.1 What is the interest rate of Indian Bank Personal Loan?

The interest rates for Indian Bank Personal Loans in 2023 vary based on the type of personal loan and eligibility. Rates start at 10% and go up to 15.96% or more, as detailed in the article.

Q.2 What is the EMI for a 5 Lakh Personal Loan from Indian Bank for a Government Employee?

The Equated Monthly Installment (EMI) for a 5 Lakh Personal Loan from Indian Bank for a government employee depends on the loan tenure and the specific interest rate offered. You can use the Indian Bank Personal Loan Interest Rate Calculator on their website to calculate the exact EMI based on your loan details.

Q.3 What types of personal loans does Indian Bank offer?

Indian Bank provides various personal loan options, including Pre-Approved Personal Loans, IB Clean Loans (Personal Loans), and Pension Loans. Each type has different eligibility criteria and interest rates.

Q.4 Can I apply for an Indian Bank personal loan if I’m self-employed?

Yes, Indian Bank offers personal loans to self-employed individuals as well. The eligibility criteria and interest rates may vary for self-employed applicants. Refer to our article for details on interest rates for different applicant categories.

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