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    Oriental Bank of Commerce (OBC) Car Loan Interest Rates

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    10.05% Fixed
    Up to ₹7,000 + S.T.
    1Cr Max
    7 Years
    Response Time Within 30 minutes
    What you'll love
    Think about
    Fees & Charges
    Eligibility Criteria

    Oriental Bank of Commerce (OBC) Car Loan Interest Rates is Rated as "Excellent!" by 13 Users

    Fees & Charges

    Promised Interest Rate

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    Overview About Oriental Bank of Commerce Car Loan

    Oriental Bank of Commerce is a public sector bank that has its headquarters in Gurgaon, Haryana and was founded in 1943. Among its various offerings, Oriental Bank of Commerce provides easy to avail car loans for all those looking to own their dream vehicle. Loans are available on a variety of cars that are required for non commercial use. Customers can procure loans without the hassle of excess documentation and at competitive interest prices for a flexible loan repayment tenure. Availing car loans has never been easier thanks to Oriental Bank of Commerce.

    Oriental Bank of Commerce Car Loan Interest Rates

    Interest rates charged on any particular loan varies and this rate is an important factor considered by prospective customers. Oriental Bank of Commerce offers interest rates that vary between 10.20% to 10.45% based on the loan repayment tenure chosen by the client.

    In addition to this, loan tenures are also flexible with Oriental Bank of Commerce offering a tenure of up to 84 months. A maximum of Rs. 100 lakhs is offered as the loan amount for the purchase of four wheelers. Prior customers of Oriental bank of Commerce are also eligible for concession on the interest rates.

    Oriental Bank of Commerce Car Loan Rates Table

    Base Rate


    Rate of Interest

    • If the loan tenure chosen by the customer is within 36 months then - 10.20%

    • If the loan tenure chosen by the customer is above 36 months (within 84 months) then - 10.45%

    Processing Fee


    Loan Amount

    A maximum of Rs. 100 lakhs

    Loan Tenure

    Up to 84 months

    Income criteria

    A gross amount of Rs. 20000 per month

    Prepayment Charge


    Documentation Charge


    Up front fee



    15% on on-road cost

    How to calculate interest rate on the Oriental Bank of Commerce Car Loan Interest Rates

    EMI or Equated Monthly Installments is the method through which loans are repaid to the bank and in essence this is the principal amount and the interest amount based on the rate of interest previously determined by Oriental Bank of Commerce. These EMIs are paid over a period of time chosen by customers in accordance with the bank and usually vary between 12-84 months. Customers, with the help of a simple formula can now calculate the EMI that they will have to pay each month to the bank. It is to be noted that with the progress in the tenure, there is a decrease in the interest amount and increase in the principal amount.

    The formula used for calculating EMIs are as given below -

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

    Where E is the Monthly EMI, P is the principal amount, r refers to the interest rate applicable per month and n stands for the number of years.

    For example, if an amount of Rs. 1,00,000 at an interest rate of 10.45% is borrowed with a loan tenure of 1 year, the tentative total amount that is to be paid is Rs. 1,04,837 with the interest rate being around Rs. 4,837.

    For example, the following will be the amortization table for a car loan of Rs. 12,00,000 for a period of 3 years at an interest rate of 10.45% from Oriental Bank of Commerce.


    Total Payment


    Principal Amount

    Interest Amount


    Rs. 1,15,915

    Rs, 11,04,064

    Rs. 95,936

    Rs. 19,979


    Rs. 4,63,658

    Rs. 7,38,606

    Rs. 3,65,459

    Rs. 98,200


    Rs. 4,63,658

    Rs. 3,33,073

    Rs. 4,05,532

    Rs. 58,126


    Rs. 3,47,744


    Rs. 3,33,073

    Rs. 14,670


    The principal amount increases with the tenure as the rate of interest decreases until the loan is repaid completely. As described in the table above, the total EMI that would be paid will amount to approximately Rs. 13,90,974 whereas the total amount of interest that is paid will be around Rs. 1,90,974..

    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 criteria 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 they are non-resident Indians 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 is 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.
    • A prior relationship with the bank is another benefit that can be availed by borrowers as the process of procuring loans become 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, 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 it all the more expensive. These factors may result in the bank charging additional interest rates as the risk for banks increase. 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.

    How CIBIL scores affect Oriental Bank of Commerce Car Loan Interest rates

    The interest rates provided by Oriental Bank of Commerce varies based on certain important determinants. Top of the list is the CIBIL TransUnion Score. Credit Information Bureau India Limited or CIBIL keeps track of a person’s spends, repayment and general information regarding this. Additionally, if loans have been previously availed then the payment history and regularity of EMI payments is also taken into consideration. Those who present a lower risk in terms of loan repayment are given higher priority by banks while providing loans. CIBIL considers the above factors and provides a score which is the CIBIL TransUnion Score. This 3-digit number plays a very important role and varies between 300 to 900. Banks, lenders and financial institutions rely on this score and deem the customer eligible or not for procuring car loans. With higher scores, the chances of availing the loan of your choice with a good interest rate is greater as those with higher scores are considered to be less risky when it comes to repayment.

    Frequently Asked Questions (FAQs) about Oriental Bank of Commerce Car Loan Interest Rates

    1. What is the maximum amount that is eligible to be loaned under the Oriental Bank of Commerce Car Loan scheme?

      The maximum amount provided as loan by Oriental Bank of Commerce for the purpose of purchasing four wheelers is Rs.100 lakhs.

    2. 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. 40000 then he/she should provide one personal guarantee that is acceptable to the bank.

      The security required is hypothecation of the vehicle purchased out of the bank loan and this is to be registered in the books of RTO.

    3. Who all are eligible to procure a car loan from Oriental Bank of Commerce and are co-applicants allowed?People eligible to receive a car loan from the Oriental Bank of Commerce are salaried individuals with at least a year of service, professionals including doctors, self-employed people, Non-resident Indians and agriculturalists. Co-applicants for the car loan can be any of the family members such as father, mother, spouse, brother, son, son-in-law and daughter of the applicant.
    4. What are the components of finance?

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

    5. What is the maximum loan amount admissible?

      In case the applicant is a professional, pensioner or a salaried individual then the maximum amount provided is 30 months of pension or gross salary provided that his/her net income is between 30%-40% as per the gross annual income.

    In case below Rs.50000 per month


    In case it is above Rs. 50000 per month


    If the applicant owns a business then cash generations are required.

    Apart from this, income of family members of the applicant can also be taken into consideration so as to meet the minimum income requirements.


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