Oriental Bank of Commerce is an India-based bank established in Lahore is one of the public sector banks in India. The bank offers features such as internet banking, phone banking NRI banking etc. The bank has launched yet another people's participation in the planning process at grass root level essentially to tackle the maladies of poverty. The Grameen Projects venture aims to alleviate poverty plus identify the reasons responsible for the failure or success. They provide quality, innovative services with state-of-the-art technology in line with customer expectations. Continue reading to view more details about this loan.
| Interest Rate (Monthly reducing balance) | Upto 36 months- BR+0.50%= 10.20% Upto 84 months- BR+0.75%= 10.45% Base Rate(BR) = 9.70% |
| Processing Fees | Nil |
| Pre Closure Charges | Nil |
| Loan Tenure | 1 year to 7 years |
| Guarantor Requirement | Guarantor required |
OBC is one of the oldest public sector banks in India. Founded in 1943, the bank provides a plethora of loan products which includes vehicle loans for cars. With appealing features and low interest rates, the bank provides finance options for all types of private use cars and extends the scheme for second hand cars as well.
The trust of public sector bank coupled with benefits such as “Zero” processing fee and high quantum of loan can help you derive the best out of your investment in a car. Car loan from OBC is available for all types of groups such as Salaried Individuals, Professionals, Agriculturalists, Business Entities and Non Resident Indians (NRI). The bank also allows co applicants to add weightage to the loan application.
Finance is available for cars of all types and makes. Quantum of loan can go as high as 15% of the “On Road” cost of the vehicle. This features ensures little burden on your wallet when it comes to your contribution.
The bank provides a maximum loan amount of up to 1 Crore. This feature ensures that you’re dream of owning a car of your choice is fulfilled. Plus, the income criteria is quite low at just Rs.20,000 per month.
Oriental Bank bills interest on the concept of reducing balance starting at just 10.50% for a loan tenure of 36 months. A concession of 0.25% is available for certain category of customers such as captive, home loan borrowers etc.
Up to 84 EMIs can be availed for repayment of the car loan which gives sufficient time to repay the loan. In terms of age, Salaried individuals who do not draw a pension can repay up to 60 years while the counterparts who are eligible for pension can do so for up to 65 years. No age bar for Business owners and Professionals.
BankBazaar.com is a leading web marketplace dedicated to comparison of loan and other banking products. Applying for a car loan with us gives you an edge by helping you understand the rates and features. You can also get the best interest rates on car loans along with full support, from application to disbursal.
As stated earlier, Oriental bank offers low interest rates based on the base rate system. The current rate of interest is Base Rate + 0.50% for all new cars. The base rate component is subject to periodic revision. Please check on official resources such as the bank’s web portal for latest base rate.
Ascertaining EMI before availing a car loan helps in deciding the terms of the loan such as the tenure. Use the Car Loan EMI calculator available under the “Finance Tools” section of this website to calculate the monthly installment value. This tool not only helps in ascertaining the value, but also gives a salient breakup of the various components involved in the car loan such as total interest charges, amortisation details etc.
Before you begin, keep handy, information such as the Loan Amount, Tenure(In Years and Months), Rate of Interest and Processing fee(if any).
Once you have this data ready, use the sliders on the scale to choose the Loan Amount & Tenure. Provide the Interest Rate and Processing fee, both in percentage. If you would like to make Pre payments at frequent intervals, provide the details, else, Click “Calculate”.
A detailed breakup of all the key financials would now appear on the screen for reference.
Oriental Bank of Commerce Car Loan can be used to purchase all variants of four wheelers, both new and second hand. The vehicle is to be registered as private vehicle for non - commercial uses only.
To apply for an Oriental Bank Car Loan, the applicant must be earning a gross monthly income of at least Rs. 20, 000.
The following class of applicants can apply for an Oriental Bank Car Loan.
The applicant’s spouse, mother, father, son, unmarried daughter, brother and daughter - in - law can register as co - applicants for the car loan.
A maximum of Rs. 100 lakhs is offered for the purchase of two wheelers under Oriental Bank Car Loan.
For cars purchased from an authorized automobile dealer out of the borrower’s own funds, the reimbursement of finance will be done within 3 months of purchase.
Hypothecation of the new four wheeler (cars and MUVs) purchased out of Oriental Bank car loan is the prescribed security. Also, the hypothecation charge will be registered in RTO books.
Yes, the applicant has to present one personal guarantee acceptable to Oriental Bank in case the gross monthly income is less than Rs. 40, 000.
The margin for Oriental Bank of Commerce Car Loan is set at 15% of the vehicle’s on road cost.
The showroom price, registration charges, first year insurance costs and one time road tax will be financed by Oriental Bank Car Loan.
In case of business entities, the maximum car loan amount is decided based on the cash generations to repay the proposed loan.
Yes, the income of family members including brother, mother, father and spouse can be considered to arrive at the required Net take home income and eligibility while applying for Oriental Bank car loan.
In case of pensioners, professionals and salaried applicants, the maximum car loan amount will be equivalent to 30 times the gross monthly salary or pension provided that the net take home income (which is gross annual income minus IT deductions, proposed loan EMIs and all other deductions) falls in 30% to 40% slab as per Gross Annual Income.
|
Income up to Rs. 50, 000 per month |
40% |
|
Income above Rs. 50, 000 per month |
30% |
Oriental Bank of Commerce Car Loan borrowers can choose a maximum repayment term of up to 84 EMIs.
For salaried applicants who will not earn any pension, they must finish the car loan before they are 60 years old or superannuation, whichever comes earlier.
Salaried applicants who will earn pension must repay the loan before they are 65 years old provided that they have regular income source.
Yes, Oriental Bank offers an interest rate concession of 0. 25% for existing group of employees and home loan borrowers who have been regular in repayment.
No. For foreclosure of Oriental Bank of Commerce Car Loan, no penalty is charged.
For second hand cars, a maximum of Rs. 25 lakhs will be offered as loan.
The margin for second hand cars is set at 20% (under TVS) and 30% (under non-TVS) of the market value which has to be assessed by a valuer or the purchase value of the second hand car, whichever is lower.
The interest rate for second hand car loans with tenures up to 60 months is set at Base rate + 3.00% which is currently set at 12. 70%. Do enquire with Oriental Bank of Commerce about the prevailing rate of interest for car loans before applying as they are subject to frequent change.
The following table describes the prevailing interest rates for new cars to be purchased with Oriental Bank of Commerce Car Loan.
|
Tenure |
Interest Rates |
|
Up to 36 months |
Base Rate + 0. 50% Currently set at 10. 20% |
|
Up to 84 months |
Base Rate + 0. 75% Currently set at 10. 45% |
You will have to submit the following documents related to the vehicle.
Yes, Oriental Bank of Commerce Car Loan borrowers can contact the bank through the toll free number 1800 180 1235 and get their queries answered. Alternatively, they can also visit the nearest Oriental Bank of Commerce branch to get clarity on the car loan application process.
Agriculturists must submit any record of land holding and cropping pattern in addition to other income documents, if available.
Self employed applicants will have to submit the Income Tax return statements for the last 3 years and bank account statements as income documents while applying for an Oriental Bank of Commerce Car Loan.
|
Age of vehicle |
Repayment Period |
|
If car is up to 2 years old |
60 months |
|
If car is older than 2 years but not more than 3 years28) What are the repayment tenure options available for purchase of second hand car using Oriental Bank of Commerce Car Loan? |
48 months |
|
If car is older than 3 years but not more than 4 years |
36 months |
The application form for Oriental Bank of Commerce Car Loan can be downloaded from the bank’s web portal. The customer can also visit the nearest branch office to procure an application form.
No, only cars intended for personal use can be purchased with Oriental Bank of Commerce Car Loan.
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