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.
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.
|Rate of Interest||
|Loan Amount||A maximum of Rs. 100 lakhs|
|Loan Tenure||Up to 84 months|
|Income criteria||A gross amount of Rs. 20000 per month|
|Up front fee||Nil|
|Margin||15% on on-road cost|
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.
|Year||Total Payment||Balance||Principal Amount||Interest Amount|
|2015||Rs. 1,15,915||Rs, 11,04,064||Rs. 95,936||Rs. 19,979|
|2016||Rs. 4,63,658||Rs. 7,38,606||Rs. 3,65,459||Rs. 98,200|
|2017||Rs. 4,63,658||Rs. 3,33,073||Rs. 4,05,532||Rs. 58,126|
|2018||Rs. 3,47,744||0||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..
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 -
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.
The maximum amount provided as loan by Oriental Bank of Commerce for the purpose of purchasing four wheelers is Rs.100 lakhs.
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.
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.
One time Road tax, showroom price, registration charges along with the insurance cost for the first year.
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||40%||In case it is above Rs. 50000 per month||30%|
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.