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  • Oriental Bank of Commerce (OBC) Car Loan Interest Rates

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  • Oriental Bank of Commerce (OBC) offers car loans at very affordable interest rates to its customers. The bank offers car loans at interest rates ranging between 9.05% and 12.15%. You can avail a car loan from OBC and choose the loan amount and the repayment tenure depending on your financial capability.

    However, it is important to understand that the interest rate charged levied on your loan will depend on factors such as the loan amount, repayment tenure, credit score, etc.

    OBC Car Loan

    Features New Car Loan Second Hand Car Loan

    Interest rates

    • For male applicants: 9.15%
    • For female applicants: 9.05%

    12.15%

    Loan tenure

    • For loan amount above Rs.25 lakh: 10 years
    • For loan amount up to Rs.25 lakh: 8 years and 4 months

    Up to 5 years

    Processing fee

    0.50% of loan amount subject to minimum of Rs.500 and maximum of Rs.7,000 + Service Tax

    0.50% of loan amount subject to minimum of Rs.500 and maximum of Rs.7,000 + Service Tax

    Loan amount

    • You can avail a loan amount equal to 40% of your monthly gross income of up to Rs.50,000 per month.
    • You can avail a loan amount equal to 30% of your monthly gross income if it is above Rs.50,000 per month.

    Up to Rs.10 lakh

    EMI per lakh

    Rs.1,272 per lakh

    Rs.2,235 per lakh

    Prepayment charges

    NIL

    NIL

    Oriental Bank Car Loan Interest Rates
    Oriental Bank Car Loan Interest Rates

    Factors affecting Oriental Bank of Commerce Car Loan Interest Rates

    There are many different factors that have an impact on the car loan interest rates decided by Oriental Bank of Commerce. Some of the most important factors are given below -

    • Income - The minimum income required is a criterion set by most banks in order to decide the suitability of a customer availing a loan. The minimum amount is decided based on the occupation of the customer such as if he/she is salaried or self-employed or if he/she is a non-resident Indian, etc. Based on the income, collaterals that are required also vary. Sometimes having a co-applicant may also help.
    • Loan repayment tenure – Generally, it is believed that longer tenures are suitable and preferred as the EMI that is paid each month will be lesser, however customers may end up paying a lot more interest. Apart from this, longer tenures also signify more risk to the bank as there is a higher chance of loan payments getting hampered or interrupted due to unforeseen circumstances like accidents and such or even inflation. Therefore, higher rates of interest may be charged on longer tenures, which is why a shorter tenure is advisable.
    • CIBIL Scores - Credit scores and the resultant CIBIL score are taken into account by banks. These credit scores are maintained by the Credit Information Bureau of India Limited. Having good credit scores is akin to a reassurance to banks that the customer can repay loans without much hassle. Therefore, maintaining a good CIBIL score is important. In addition to this, having good CIBIL scores may also result in the bank providing better interest rates.
    • Relationship with the lender - A prior relationship with the bank is another benefit that can be availed by borrowers as the process of procuring loans becomes a lot simpler and is more convenient. Customers who already have a working relationship with the bank can also avail certain concessions on their interest rates.
    • Down Payment - Down payment is mandated by certain banks while availing a loan. The higher the amount provided as down payment, the lower is the interest rate charged on the loan as the amount to be repaid to the bank is less. A higher down payment is seen as less risky by the bank while providing loans and is therefore advised.
    • Car model - Cars are depreciating assets, as in their value decreases over time and this is seen more clearly in some models as compared to others. Also, certain cars come with additional features that make them all the more expensive. These factors may result in the bank charging additional interest rates as the risk for the bank increases. Banks need assurance that the customer will repay the availed loan with the applicable interest rate. Hence, the type of car they are financing plays a role in the interest rate that is charged.

    Oriental Bank of Commerce (OBC) Frequently Asked Questions

    1. I am looking to avail a car loan from OBC to purchase a car. What should be the income criteria I will need to fulfil in order to be eligible for the availing of the car loan?
    2. If you are looking to purchase a car from OBC to purchase a new or a pre-owned car, then the minimum gross monthly income you will have to show is Rs.30,000.

    3. Can I have a co-applicant while applying for a car loan from OBC? If yes, then who can be my co-applicants?
    4. Yes, you can have a co-applicant who can apply for a car loan from OBC. Your parents, brother, sister, daughter, daughter-in-law, or your spouse can be the co-applicant.

    5. Can I apply for an OBC Car Loan online?
    6. Yes, you can apply for an OBC Car Loan online. You will have to visit the official website of OBC and under the ‘Vehicle Loan’ section, click on ‘Apply Now’. You will have to enter your details such as your name, mobile number, date of birth, etc. and upload the relevant documents required by the bank. Your documents will be verified by the bank, and if they are correct, the lender will disburse the money to your bank account.

    7. Who can apply for an OBC Car Loan?
    8. Salaried individuals with a minimum experience of 1 year, professionals such as doctors, self-employed individuals, farmers and agriculturists, and Non-Resident Indians (NRIs) can apply for an OBC Car Loan.

    9. How can I check the status of my loan?
    10. You can visit the official website of OBC and under the ‘Vehicle Loan’ section, click on ‘Loan Status’. A separate page will open where you will have to enter the ‘loan reference number’ which you would have received after applying for a car loan. After entering the reference number, enter the captcha code provided for security purposes and click on ‘Submit’. You will then be able to check the status of your loan.

    11. What collateral or security should the applicant provide?
      • Based on the vehicle that is to be purchased, the collateral required varies. Apart from this, the income of the applicant also determines the collateral.
      • For the purchase of four wheelers, in case the applicant’s gross monthly income is below Rs. 40,000 then he/she should provide one personal guarantee that is acceptable to the bank.
      • Hypothecation of the new car that has been purchased out of the bank finance with the hypothecation charge registered in the RTO book.
    12. What are the components of finance under OBC Car Loans?

    One-time Road tax, showroom price, and registration charges along with the insurance cost for the first year.

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