Why You Should Go for Oriental Bank of Commerce Personal Loan?


31 Mar 2019 | 15 min read

Oriental Bank of Commerce is among the well-known public sector banks of India. The bank extends different financial services to the customers ranging from deposits and loans to insurance and foreign exchange.  A Personal loan is one of the popular products of Oriental Bank of Commerce as it helps the customers meet their financial needs without much hassle. Competitive rate of interest and easy documentation add to the advantages of the Oriental Bank of Commerce Personal Loan. Let us discuss the features and benefits of Oriental Bank of Commerce Personal Loan and learn how you can apply for it.

Oriental Bank of Commerce Personal Loan Categories

People seek personal loan during a financial emergency. It is usually an unsecured loan and can be availed quicker than other types of loans. Oriental Bank of Commerce offers personal loan under three categories, namely-

  • Personal Loan for Government/PSU Employees
  • Personal Loan for Corporate Employees
  • Personal Loan for Pensioners

Each of these has different eligibility criteria and documentation requirement.

1- Personal Loan for Government/PSU Employees

As suggested by its name, this Oriental Bank of Commerce Personal Loan Scheme is meant for the permanent and confirmed government employees or the employees of public sector undertakings like SAIL, NTPC, ONGC, GAIL, etc. If the applicants have their salary account with Oriental Bank of Commerce, they can enjoy comparatively easier terms and conditions. However, those who do not have a salary account with the bank but employed with PSUs can apply for this loan.

The loan proceeds can be used to meet personal expenses like education, marriage, purchase of big-ticket items. Any legitimate personal reason can be cited for the loans except speculation purpose. Given below are a few key features of the Oriental Bank of Commerce Personal Loan-

  • The applicant can get up to 15-times the gross salary with the maximum amount capped at ₹ 10 Lakhs.
  • The bank requires one personal guarantee preferably from one of the fellow employees of the applicant. The person should not stand as a guarantor in more than two accounts.
  • There is no penalty on making pre-payment towards the loan.
  • The rate of interest is linked to the bank’s one year MCLR.
  • The repayment tenure can be up to 5 years.

Eligibility Criteria of Oriental Bank of Commerce Personal Loan

  • The applicant should be a permanent and confirmed employee of Center/State Government, PSUs or other government-run organizations.
  • Those who have a salary account with OBC should have a minimum net monthly salary of ₹ 10,000 to be eligible for this loan.
  • For those who do not have a salary account with the bank, a minimum gross monthly salary of ₹ 50,000 is required.
  • After deducting the EMI of proposed personal loan, the in-hand salary of the applicant should not be less than 30% of his gross salary.

2- Personal Loan for Corporate Employees

Oriental Bank of Commerce offers this personal loan to permanent employees of corporates, non-government organizations or institutions including schools and colleges. Whether the applicant has his/her salary account with the bank or not, he/she can apply for this loan. The terms, however, may vary a little. The loan proceeds can be used to provide for a medical emergency or personal financial need except for speculation or illegal activity.

Listed below are the essential features of this personal loan-

  • The loan amount may be up to 15 times of the applicant’s gross salary with the maximum loan amount capped at ₹ 5 Lakhs.
  • There is no margin required.
  • A fellow employee who does not stand guarantor in more than two accounts needs to provide a personal guarantee for the applicant.
  • A processing fee of the loan is 1% of the loan amount plus taxes.
  • The longest tenure of the loan can be 5 years.
  • There is no pre-payment penalty on this personal loan.

Eligibility Criteria

  • The applicant must be a confirmed and permanent employee of corporates or non-government organization/institution.
  • He/she should have minimum 3 years of experience.
  • The net monthly salary of the applicant should not be less than ₹ 10,000 if the applicant holds a salary account with Oriental Bank of Commerce.
  • After deducting the EMI of the proposed loan, the applicant’s net salary should not be less than 30% of his/her gross salary.
  • Applicants who do not have a salary account with Oriental Bank of Commerce must have gross monthly salary of at least ₹ 50,000.

3- Personal Loan for Pensioners

Oriental Bank of Commerce Personal Loan is also offered to pensioners to meet their financial needs such as a family trip, medical needs or to cover a family liability. Both pensioners and family pensioners are eligible for the loan. Family pensioner refers to the person authorized to take pension after the death of the primary pensioner; usually it is the spouse of the pensioner. Some of the key features of this loan are-

  • The quantum of loan differs for pensioners and family pensioners. Also, Defence Personnel are eligible for a higher loan amount. Family pensioners of defence as well as other services can get a maximum loan of ₹ 5 Lakhs. The maximum loan amount for defence personnel pensioner is ₹ 10 Lakhs and for others it is ₹ 5 Lakhs.
  • The spouse eligible for family pension should give the guarantee. In case the spouse is not available, the bank can accept guarantee of another family member or a third party.
  • The rate of interest is linked with MCLR.
  • There is no pre-payment penalty.
  • A minimal processing fee of 1% is charged from the borrowers.
  • For both pensioners and family pensioners, the maximum tenure is set at 5 years, but the last repayment is set at 75 years for pensioners and 70 years for family pensioners.

Eligibility Criteria

  • Both pensioners and family pensioners are eligible for the loan.
  • Pensioners should not be more than 75 years old.
  • Family pensioners should not be more than 70 years old.
  • The net takes home a pension of the borrower should not be less than 50% of the gross pension, after deducting EMI of the proposed loan.

Oriental Bank of Commerce Secured Personal Loan

When we talk about personal loans, we usually refer to the unsecured type of loan. However, Oriental Bank of Commerce also offers you some secured loans to meet personal expenditure. There are two types of OBC secured personal loan-

  1. Loan against Deposits

OBC offers personal loans against deposits to anyone willing to pledge his unencumbered deposits with the bank as collateral for the loan. This may be an overdraft or demand loan facility, and the borrower can raise a maximum amount of ₹ 500 Lakhs depending on his deposit. The pledged collateral should be in the name of the primary borrower or jointly with a third-party. Firms, companies, HUFs, trusts, and association of persons can also apply for this facility. For self-deposits, the interest rate will be 1% above the rate of interest on the deposits, and it will be 2% above the price, if you pledge a third-party joint deposit. There is no processing fee. The bank takes 5% to 15% of the margin, depending on the type of deposit, you pledge for the loan.

  1. Loan against Government Securities

Individuals above the age of 18 and firms/companies can apply for this loan against government securities for meeting their personal or business expenditure. Borrowers can raise up to ₹ 50 Lakhs through this facility at an interest rate of 2.00% over their 1 year MCLR with monthly rest. Govt. securities like PSU Bonds, LIC Policies of LIC of India, Securities/Relief Bonds issued by RBI/ICICI/IDBI, NSCs or any other such security transferable/assignable to the Bank are eligible for this loan. If you are pledging an insurance policy, 10% will be taken as the margin whereas in case of all other types of government securities, the margin can go up to 25%.

Oriental Bank of Commerce Personal Loan Rate of Interest

Oriental Bank of Commerce charges a competitive rate of interest on its personal loan offerings so that the borrowers can meet their financial urgency without having to shell out more than required as interest payout. The table given below shows Oriental Bank of Commerce Personal Loan Interest Rate for different schemes-

Type of Loan

Rate of Interest

Personal Loan Scheme for Govt. Employees

1 year MCLR + 2.75%

Personal Loan Scheme for Corporate Employees

1 year MCLR + 3.75%

Personal Loan for Pensioners

1 year MCLR + 2.25%

Apart from the interest, OBC also charges a processing fee on its personal loans. It is 0.50% (minimum ₹ 500) for government employees whereas both the other loans charge 1% processing fee. 2% penal interest is charged over and above the interest rate if the borrower cannot service the EMIs on time or if he makes irregular payment.

Oriental Bank of Commerce Personal Loan Eligibility and Documentation

As mentioned above, Oriental Bank of Commerce Personal Loan is given to three types of customers. The eligibility criteria also differ on the basis of person seeking the loan. There are three main aspects to look at-

Age- The age criteria is shown in the table below-

Type of Borrower

Minimum Age

Maximum Age

Employee of Govt.  organization/PSU

21 years

65 years

Corporate Employees

21 years

65 years



75 years for pensioners
70 years for family pensioners

Employment Type- Both corporate employees and government employees should be confirmed and permanent employees of the organizations listed by the bank.

Income- You can apply for Oriental Bank of Commerce Personal Loan irrespective of whether you have a salary account with the bank or not. The income requirement, however, may differ. For both PSU Employees and corporate employees, the minimum net monthly salary requirement is ₹ 10,000 if they have a salary account with OBC and gross monthly salary of ₹ 50,000 is required in case they do not maintain a salary account with the bank.

Apart from these, some more information may be required by the bank depending on the case.

Documents Required for Oriental Bank of Commerce Personal Loan Application

The applicant will have to submit the following at the time of application-

  • Duly filled the personal loan application form
  • Passport-size photograph
  • Proof of Address- PAN, Voter’s ID, Passport, Driving License or any other photo ID proof approved by the government.
  • Proof of Address- Passport, Voter’s ID, and Driving License, Ration Card or any government approved address proof.
  • Proof of Income- Last 3 months’ salary slips, bank statement, ITR, Form-16, etc.

How to Apply for Oriental Bank of Commerce Personal Loan?

You can apply for Oriental Bank of Commerce Personal Loan by visiting the nearest bank branch. Click here to find an OBC branch near you.

Alternately, you can apply for OBC Personal Loan through Afinoz. It is a financial services platform wherein you can find and compare different personal loan offers and choose the right one. Follow the process given below to apply for a personal loan through Afinoz.

  • Visit Afinoz and select ‘Personal Loan’ from the ‘Products’ section.
  • Answer a few questions such as occupation, work experience, company details, monthly income, current EMI that you are paying and date of birth.
  • Enter the required loan amount, email ID and mobile number.
  • Enter the OTP sent on your number.

Once you have completed this process, you will get a call from one of the executives of the bank. He/she will ask you about the right time and place for collecting documents. After submitting the documents, if you get approved by the bank, your loan amount will be disbursed within 7-10 business days.

Why choose Afinoz for Oriental Bank of Commerce Personal Loan?

Apply at Afinoz platform and get 1% cash back on the disbursed loan amount.

Afinoz is a personalized marketplace wherein you can find different financial products from personal loans to credit cards. Some of the reasons why you should get a personal loan for Afinoz are-

  • You can get instant e-approval on your loan application.
  • You can also check your eligibility for a particular personal loan using the online personal loan EMI calculator.
  • After application, you get the option of real-time tracking of your application. You will also get regular updates through SMS and email.
  • Afinoz does not charge any extra amount from the users for its services.
  • You can choose from multiple personal loan options from leading banks.
  • Read about personal loans and how to make smart decisions related to loans.
  • In case of any query or complaint, you can call our 24x7 customer service.

Oriental Bank of Commerce Personal Loan Repayment

Borrowers of OBC personal loan have to pay a pre-defined amount of EMI every month. The EMI consists of principal and interest component. Usually, those who have a salary/savings account with Oriental Bank of Commerce have the option of setting standing instructions on their account for EMI payment. Every month, the EMI amount will be directly deducted from the account on the due date.

Those who do not have an account with the bank have the following options for Oriental Bank of Commerce personal loan repayment-

Auto Debit- People having savings account in other banks also have the option of setting auto-debit instructions for OBC personal loan repayment. The EMI will be automatically deducted.

Post-dated Cheque- Borrowers may also submit post-dated cheques for the future payments to be made towards your personal loan. A fresh set of PDCs is needed after a given period of time, say one year, at the nearest OBC branch.

If you wish to make EMI payment through any other means, you will have to discuss the same with your loan officer beforehand. Oriental Bank of Commerce also allows the borrowers to make pre-payment towards their personal loan. There may be certain terms and conditions related to it along with a minimal penalty. You can call the bank for more information about OBC personal loan prepayment.

Factors affecting your OBC Personal Loan Application

There are a number of factors that impact your personal loan approval by the Oriental Bank of Commerce. These include-

Credit Score- Before granting a loan, the bank checks the applicant’s credit history and credit score. So, if you have a good credit record, the chances of approval will be higher. On the other hand, if you have had delinquencies in the past, the bank may not be too keen on giving you an unsecured personal loan. Even if they consider it, you may not be able to negotiate a lower interest rate.

Income- The income of the applicant makes the basis for the bank to decide whether he/she will be able to repay the loan on time. It mostly impacts the amount of loan that you are eligible to get.

Employment Status- The bank wants to know how stable your job is so that they can make sure that you will be able to service the loan regularly. So, they dig deeper to understand how stable you have been in your current job. They will look at the company you work with, where it is located and for how long you have been associated with it.

Residential Location- Banks have designated the areas where they will provide a particular service. So, if you live in a location that is blacklisted by the bank, the chances are high that your loan will be rejected outright.

Oriental Bank of Commerce Personal Loan EMI Calculator

Before applying for Oriental Bank of Commerce online personal loan, you should do a little research about the rate of interest they are offering and how much EMI you would have to pay if you get approved for the amount you are seeking. You can use our personal loan EMI calculator to check the same and make an informed decision. Using the EMI calculator is easy. Enter the loan amount, interest rate and the tenure for which you would like to take the loan. Once you do this, you can see the loan amount and the total interest payable on the right side of the screen. You can check it multiple times for different loan amounts, interest rates and tenure.

Oriental Bank of Commerce Personal Loan Customer Care Number

If you have any query/complaint related to Oriental Bank of Commerce Personal Loans, you can call on their toll free numbers-

  • 1800-180-1235
  • 1800-102-1235

Queries can also be resolved by contacting your nearest OBC branch.


1- I am a self-employed professional, and I have a savings account with OBC. Can I get a personal loan from them?

Oriental Bank of Commerce currently does not offer personal loans to the self-employed. Nevertheless, since you already have a relationship with the bank, you can approach them for the same by calling on their customer care number or by visiting the nearest branch. The executive will suggest you a different loan product if you are not eligible for their unsecured personal loan.

2- Can I apply for OBC personal loan online?

The bank does not offer the online application facility as of now. You will have to visit the nearest branch for the same or call your relationship manager. You can apply online on our website.

3- How long does it take for Oriental Bank of Commerce to process my loan application?

It usually takes around 10-15 days for the loan process to complete starting from loan application to final disbursal. It may also vary on a case-to-case basis. If all your paperwork is in place, you may even get the disbursal within a week.

4- Can I take a personal loan from OBC for paying my credit card bills?

Yes. You can take a personal loan for any purpose except speculative activities or illegal usage.

5- Do I get any tax rebates on OBC personal loan?

No. Personal loans do not qualify for any tax deduction.

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