Indian Overseas Bank (IOB) offers car loans for new and used cars at interest rates ranging between 9.15% p.a. and 11.15% p.a. The interest rate offered depends on factors such as the income, credit score, loan amount, loan tenure, and so on.
|Features||New Car Loan||Used Car Loan|
|Interest rate||9.15% p.a.||
|Quantum of finance||Up to 90% of the price of the car||Up to 75% of the current market price of the car|
|Loan tenure||84 months||84 months minus the age of the car|
|Lowest EMI per lakh||Rs.2,083 (at 9.15% p.a. interest for a 5-year tenure)||Rs.2,132 (at 10.15% p.a. interest for a 5-year tenure)|
|Loan documentation charges||Nil to Rs.5,000|
The car loan interest rate offered by IOB is determined by many factors. A few of the factors and how they affect the rate are given below:
A used car under the age of 5 years can be financed with the help of IOB’s car loan.
The car that is purchased using the loan amount will automatically become the security. Hypothecation of the car needs to be bought and the bank’s lien on the car needs to be mentioned in the Registration Certificate of the car.
Yes, NRIs can apply for the loan if a resident Indian act as the guarantee to the loan.
Your take home salary needs to be at least 50% of the gross salary after all deductions. Your income in addition to your spouse’s income needs to be at least Rs.8,000 to buy a car using IOB’s loan scheme.
You can repay the loan in the form of monthly instalments that will be the sum of a percentage of the principal amount and the interest amount. You can calculate the EMI payable using the online EMI calculator.
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