Bank of India (BOI) is one of the largest public sector banks offering a custom suite of personal loans to meet several requirements of individuals. These can be marriage, education, travel, medical emergency, etc. The loan can be granted even without any security, which means it is easily accessible. You can apply for a loan online, which further adds to your convenience. But as it’s an unsecured loan, BOI would like to carry out an eligibility test based on various factors. So, which are the factors that will dictate the Bank of India Online Personal Loan approval? Let’s find out.
How Does Bank of India Test Your Candidature for Personal Loans?
The bank checks the candidature taking into account the following factors –
Income – It is perhaps the biggest criteria that will decide the loan eligibility. Not only the approval is contingent on this, but also the maximum loan amount that you can get from Bank of India. Bigger the income, greater are the chances to get the loan application approved.
Credit Score – As the loan remains unsecured, the bank would like to make sure you have a spotless credit history. It does so to get the confidence that you can repay the loan smoothly. Credit scores are assigned by credit bureaus such as CIBIL in the range of 300-900 in India.
Job Stability – You also need to be stable in your job, so people who switch jobs frequently may struggle to get approval. Therefore, it is vital that you have a significant continuity in work.
Residence Stability – Bank of India would prefer lending to people having their own home or staying in rental accommodation for a greater period of time. The residence stability ensures confidence amongst the lender and makes it believe that you will repay the loan.
How Can the Existing Loan or Credit Card Obligations Impact Eligibility?
When you are free of debts, you can get more loan than when you have an existing loan or credit card obligation. With existing obligations, your ability to pay for the new loan can reduce. This could result in a lesser loan than expected. But if you do have the income that can allow greater payments, there won’t be any problem for the bank to lend you more. All that the bank wants is to ensure you pay off the debts.
What Other Things Do You Need to Do?
After knowing the eligibility, you should focus on the EMI that you will pay to Bank of India. The Equated Monthly Installment (EMI), which combines both principal and interest portions of the loan, must get paid on time to build on to your credit history. You can check the Personal Loan EMI Calculator to compute the repayment you’re likely to do. The calculator will make all the calculations based on the loan amount, interest rate and tenure. Greater the loan amount and interest will be, more will be the EMI and interest outgo. Meanwhile, the longest tenure will keep the EMI low but will increase the interest payment to be made.