If you really think about it, it's easier getting a loan for a car than a loan for bus fare!
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    Bank of India (BOI) Car Loan Interest Rates

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    9.5% Fixed
    ₹500 + S.T.
    50L - 1Cr
    7 Years
    Response Time Within 30 minutes
    Think about
    Eligibility Criteria

    Bank of India (BOI) Car Loan Interest Rates is Rated as "Excellent!" by 14 Users

    Fees & Charges

    Promised Interest Rate

    Customer Service



    Overview of the Bank of India Car Loan

    Established in 1906 at a time when most banks within India were not owned by Indians, Bank of India is headquartered in Mumbai, Maharashtra and was initially aimed at serving people from varied backgrounds and communities within the country. The Bank of India currently has over 4000 branches across the country and over 50 offices abroad. These branches also include representative offices, subsidiaries and also a joint venture. Since 1969, the Bank of India has been government-owned due to nationalization.

    For all those drooling over their next set of wheels, but unable to afford the hefty sums, fret not, Bank of India offers loans that are suited to everyone's needs and requirements along with being immensely convenient. With easy to procure loans at competitive rates, Bank of India is a one stop shop for availing car loans.

    Bank of India Car Loan Interest Rate

    Car Loan Interest rates vary with each bank and is dependent on a number of factors. Banks and financial institutions offer competitive interest rates so as to coerce prospective applicants into availing a loan from them. Loan tenures are another main concern for applicants. Bank of India offers a loan tenure of up to seven years for the purchase of four wheelers. However if the four wheeler is being purchased by a corporate or a firm then a maximum loan repayment tenure of five years is applicable. Bank of India offers loans for all types of cars be it hatchbacks or S.U.Vs or any other kind. The current rate of interest applicable is Base Rate +0.45%.

    Bank of India Car Loan Rates Table

    Base Rate


    Rate of Interest


    Processing Fee

    Rs. 500

    Loan Tenure

    A maximum of 7 years


    A maximum of 25%

    Maximum limit for finance

    A maximum of Rs.200 lakhs depending on whether the make and model is Indian or foreign and if the borrower is an individual or a corporate entity

    How to calculate the interest rate on the Bank of India Car Loan

    Customers who have borrowed loans from Bank of India in order to purchase a vehicle can repay the same via Equated Monthly Installments or EMIs. EMI includes both the principal amount along with the interest amount. There is an increase in the principal amount and a reduction in the amount of interest to be paid as the loan tenure progresses.

    The formula for calculating the EMI on a car loan is -

    E = P*r*[(1+r)^n/((1+r)^n-1)]

    Where E is the Monthly EMI, P is the principal amount, r is the rate of interest per month, n is the number of years.

    For an amount of Rs. 1,00,000 at an interest rate of 10.40% with a loan tenure of 1 year, the total amount that would be paid will be about Rs. 1,04,814 with interest amount coming up to Rs. 4814.

    For example, the following will be the amortization table for a car loan of Rs. 8,00,000 for a period of 3 years at an interest rate of 10.40% from Bank of India.

    Year Total amount to be paid Balance amount Principal amount Interest amount


    Rs. 77223

    Rs. 736032

    Rs. 63968

    Rs. 13256


    Rs. 308894

    Rs. 492284

    Rs. 243748

    Rs. 65146


    Rs. 308894

    Rs. 221942

    Rs. 270342

    Rs. 38552


    Rs. 231670


    Rs. 221942

    Rs. 9728

    The quantum of principal amount that is paid is directly proportional to the loan repayment period whereas the interest rate is inversely proportional to the loan tenure.

    Factors affecting Bank of India Car Loan Interest Rates

    There are numerous factors that have an impact on the interest rates for a Bank of India car loan. These in turn help determine the loan amount that is offered to the prospective applicant, along with the amount that is decided as the EMI to be paid. Some of these factors are given below.

    • Amount of down payment - The amount paid as down payment is a significant factor in determining the loan amount and interest rates. Higher the amount paid, lower will be the amount to be given by the bank or financial institution. Hence customers who pay higher down payments are perceived to be less risky by the bank and therefore stand a greater chance of availing loans at better interest rates.

    • Income - Annual income of the applicant is seen as important by banks and financial institutions. Most of these institutions have a minimum annual income that is necessary for customers to have in order to avail a car loan and this minimum amount varies based on whether the customer is salaried or self employed among other factors.

    • CIBIL Score - CIBIL scores are highly significant and applicants with higher scores have a greater chance of availing loans at good interest rates. Those with scores above 750 are seen to have a greater chance of repaying the loans on time and hence can procure loans more easily.

    • Tenure - Loan tenures for car loans vary with each bank and financial institution. The amount of interest and EMI varies with the tenure. The longer the tenure, higher will be the interest rate to be paid therefore most choose a shorter tenure so as to reduce the overall interest amount that is to be paid.

    • A relationship with the bank is also significant. Bank of India has various offers and benefits for customers who have a previous working relationship with the bank.

    How CIBIL scores affect Bank of India Car Loan Interest rates

    The CIBIL TransUnion Score is generated by the Credit Information Bureau India Limited or CIBIL which, provides and maintains a person’s credit related information that is related to his/her loan payments. This 3 digit number is seen as a very important criterion by banks and financial institutions before determining the eligibility of a person to avail loans. This score varies from 300 to 900 and the higher the scores, higher are the chances of availing loans. Apart from this, banks and institutions prefer lending to those they see as low financial risk and have a greater chance of repaying the loan with the designated interest rate.

    FAQ about Bank of India Car Loan Interest Rates

    • What is the requirement in terms of security for the loan?

    The requirements are as follows -

    ~Hypothecation of the vehicle for which loan is being availed

    ~The charge is to be registered with RTO

    ~In case the applicant is an NRI then the guarantee of an Indian resident is required.

    • What are the types of advances available?

    The types of advances available are demand loans or term loans.

    • What is the maximum limit on the amount of finance provided by Bank of India?

    The maximum limit differs based on the type of vehicle -

    ~ for cars of Indian origin, the limit is Rs 50 lakhs

    ~ for cars that are imported, the limit is Rs. 100 lakhs

    ~ for corporates and companies the limit is Rs. 200 lakhs and this also includes a fleet of vehicles

    ~ for NRIs, the limit is Rs. 50 lakhs

    • What is the loan margin applicable to Bank of India for new cars?

    Bank of India offers the following loan margin

    Amount Margin in terms of percentage

    A maximum of Rs. 10 lakhs

    No margin - on ex. showroom prices and this excludes tax and registration charges and comprehensive insurance

    Between Rs. 10 lakhs to Rs. 25 lakhs

    15% margin on road price and this includes tax and registration charges and comprehensive insurance

    More than Rs. 25 lakhs

    25% margin on road price and this includes taxes and registration charges and comprehensive insurance.

    What terms are the maximum loan limit subject to?

    The maximum limit is subject to the following -

    24 times the gross monthly payment in the case of salaried employees/ pension or twice the gross average annual income as given in the I.T returns of the previous 3 years

    Twice the average annual cash accrual as per company's or firm’s audited balance sheet, P&L A/c of the firm/company.


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