Bank of India offers car loans at an affordable interest rate of 9.45% for a repayment tenure ranging up to 7 years if you are looking to purchase a new car and for up to 3 years if you are looking to buy a pre-owned car. The rate of interest charged on your loan will depend on factors such as the loan amount, credit score, repayment tenure etc.
| Features | New Car Loan | Used Car Loan |
|---|---|---|
|
Interest rates |
9.45% |
9.45% |
|
Loan tenure |
7 years |
3 years |
|
Processing fee |
Rs.500 per application |
1% of loan amount; subject to a minimum of Rs.5,00 and maximum of Rs.10,000 |
|
Loan amount |
Up to Rs.200 lakh |
Up to Rs.200 lakh |
|
EMI per lakh |
Rs.1,632 |
Rs.3,201 |
|
Prepayment charges |
NIL |
NIL |
Some of the important factors affecting the Bank of India car loans have been explained below. Banks might sanction or reject applications based on these factors.
Down Payment - The down payment amount given by a customer also defines the interest rate that the bank will be offering for a car loan. The higher the down payment amount, the lower the interest rate and vice versa. Customers should always pay a good lump sum before they start their car loan. There are dual benefits attached to this, the first being that the interest rate is lowered and second being that the monthly instalment amount also comes down considerably.
Income to Debt Ratio- The income to debt ratio translates to the number of debts that a borrower has, to the income earned on an annual basis. Banks consider this to be a major criterion when they sanction a car loan. If the income to debt ratio is good for an applicant, then the lender will give better interest rates.
Loan Tenure - Lending institutions might offer low-interest rates for car loans with shorter loan tenures. Since the borrower has made a huge lump sum down payment, the procured loan amount will be lower, thereby shortening the loan tenure. Shorter loan tenures ensure that customers are able to save on monthly instalments through the tenure and they do not have to bear the huge burden of paying extra interest charges.
Market Fluctuations - The interest rate might vary based on market fluctuations and changes too. For example, if the Reserve Bank of India lowers its repo rate, then lending institutions might offer relatively lower interest rates. This would benefit the customers and it would be an ideal time to avail a car loan. Inflation rate also contributes to the increase and decrease of a car loan interest rate.
The eligibility criteria you will have to fulfil while applying for a car loan from Bank of India are given below:
No, a member of Hindu Undivided Family (HUF) is not eligible to apply for a car loan from Bank of India. Companies, partnership firms, proprietary concerns and other types of corporate entities also cannot apply for a car loan from Bank of India.
You can get in touch with a Bank of India customer care executive by calling on the following numbers: 1800 220 229, 022-4091 9191, or 1800 103 1906.
Yes, you can visit the official website of Bank of India and click on ‘Vehicle Loan’. On the right-hand side of the page, under the menu section, you will find the EMI calculator. You can calculate the EMI for the car loan you wish to avail by entering the details required. This will give you an idea of the loan amount you must avail, including the repayment tenure and the interest rate suitable for you.
You can also use the car loan EMI calculator provided by BankBazaar and check the EMI you will have to pay after availing a car loan from BankBazaar.
Yes, you can apply for a Bank of India car loan offline by visiting the nearest branch of the bank. You must ensure to carry all the relevant documents with you. A bank official will further assist you with the process of applying for a car loan.
Your credit score plays a huge role in the bank determining the interest rate they should charge you on the loan amount levied by you. It is important you maintain a credit score of 750 and above so that you are charged a lower rate of interest by the lender. Having a higher credit score gives the bank the impression that you will be able to pay back loan in time due to which your loan is processed faster, and a lower interest rate is charged.
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