Bank of India (BOI) Personal Loan Eligibility

Factors affecting Bank of India Personal Loan Eligibility

• The income of the applicant: The higher the income of the individual, the better will be their chances of being eligible for a loan from Bank of India. The income of the applicant is taken into consideration to assess whether he/she will repay the loan on time.
• The repayment track record of the applicant: If the applicant has a poor repayment track record which will be reflected in his/her credit score, then chances are that the application will be rejected. Usually, applicants are expected to have a credit score of 750 onwards.
• The age of the applicant: Bank of India takes into consideration the age of the applicant when assessing their eligibility for the loan. If the applicant is young and earns a regular income, he/she has a better chance of being eligible than an applicant closing on his/her retirement years.
• The loan amount chosen: The loan amount that the applicant has applied for also plays a huge role in deciding the eligibility of the candidate. Bank of India assesses the loan amount one has applied for with their net income. If the candidates' income is low and the loan amount, he/she has applied for is huge, chances are that the application will be rejected.
• Doctor's certificate: In the case of the Star Mitra Personal Loan, the applicant will have to submit a medical certificate to prove that he/she is physically challenged to avail a loan.

How to increase chances of Bank of India Personal Loan Eligibility?

• Net Income should be sufficient: Ensure that the net income that you earn is enough in comparison to the loan amount that you'd wish to avail. If your income is low, apply for a reasonable loan amount.
• Apply for a personal loan when younger: Provided that he/she is earning a regular income, the younger the applicant, the better are the chances to be eligible for a personal loan. In addition, the interest rates offered for younger applicants will be better.
• Make sure that are no discrepancies in the submitted documents: To avoid a personal loan application rejection, ensure that the documents that are submitted have no discrepancies with regards to the amount one earns or income proof, age, name, etc.
• Ensure that your credit score is above 750: The repayment track record of the applicant is one of the main factors that decide if the candidate is eligible or not. If your credit score is low, make sure that you improve it before making a personal loan application. FYI, loan application rejections bring down the CIBIL score as well.
• Calculate your EMI NMI (Net Monthly Income) ratio: Make sure that the EMI amount is not more than 40%-50% of your net month income if you wish to be eligible for the personal loan.

A good credit score can help you secure lower interest rates on loans and credit cards.

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