Bank of India Used Car Loan
Bank of India Used Car Loan lets you finance a pre-owned car with tenures of up to 36 months and rates linked to MCLR or Base Rate. Eligible salaried, self-employed and professional applicants can borrow under the bank's Star Vehicle Loan against hypothecation of the vehicle. Full ownership of the car transfers to you once the loan is repaid in full.
Features and Benefits of Bank of India Used Car Loan
Maximum Amount of Funding
Bank of India finances up to 70% of the market value. An authorized assessor determines the actual car value.
Marginally Low Interest Rates
The bank does not differentiate interest rates between new and used cars, offering competitive rates. Current rates available on Bank of India's official website.
Favorable Loan Tenure
Repayment periods extend up to 36 months through Equated Monthly Installments (EMIs).
One Time Processing Fees/Handling Charges
- Processing Fee: 1% of loan amount
- Minimum: Rs. 500
- Maximum: Rs. 10,000
- Higher for corporates and partnership firms
- Waived for: Senior citizens, bank staff, former employees, and pensioners drawing from the bank
Loan Security
The loan operates under hypothecation agreement, registered with the local Regional Transport Office (RTO). Full ownership transfers to the borrower after complete repayment.
Bank of India Used Car Loan Eligibility Criteria
- Salaried employees working in government, semi government or corporate sector with regular income are eligible to apply for a used car loan.
- Professionals and self employed businessmen meeting the required criteria can also apply.
- Non - Resident Indians can avail a car loan with guarantee from resident Indian who should be a close relative.
- Individual applicants should not exceeding 65 years in age at the time of availing advance.
- Non - Individuals falling in the category of Companies, Partnership Firms, Proprietary concerns and all business entities. HUF's(Hindu Undivided Family) do not qualify.
Bank of India Used Car Loan Interest Rates
Bank of India's Star Vehicle Loan can be used to purchase a used car, with the bank charging interest based on either the MCLR system or Base Rate. MCLR based rates are applicable to new customers, whereas existing borrowers can choose to migrate to MCLR or stick to the base rate.
Bank of India Marginal Cost of Funds Based Lending Rate (MCLR) (For new borrowers)
Bank of India introduced MCLR based rates following guidelines released by the RBI. These rates are indicative of current economic trends, with the table highlighting the current rates.
MCLR Benchmark Tenure | Benchmark Rates (MCLR) (p.a.) |
Overnight | 7.85% |
1 month | 8.15% |
3 month | 8.35% |
6 month | 8.65% |
1 year | 8.80% |
3 year | 8.90% |
Note: The interest rates are effective from 1 August 2026.
Used car loan interest rates
Bank of India offers used car loans at an attractive interest rate starting from 10.40% p.a.
Bank of India Base Rate (For existing borrowers)
Current Base Rate: 9.50% p.a. (effective 1 April 2026 to 30 June 2026) Interest charged varies by loan tenure, subject to case-by-case changes.
Note: Interest rates are subject to change without intimation. Check Bank of India's official website for prevailing rates.
EMI Calculation for Bank of India Used Car Loan
Bank of India Used Car Loan calculator lets you calculate monthly EMIs in easy steps. In less than a minute, find out your total liability with the amortization table. Tools such as the EMI calculator always comes handy in getting an aerial view of the costs involved, thus helping you plan in a better manner.
Summary
Bank of India Used Car Loan helps eligible salaried, self-employed and professional applicants finance a pre-owned car with tenures of up to 36 months and rates linked to MCLR or Base Rate. The loan is secured by hypothecation with the RTO, with full ownership transferring to you once repayment is complete. Check your eligibility above and use Bank of India's EMI calculator to plan your Used Car Loan repayments before applying.
FAQs on Bank of India Used Car Loan
1.What is Bank of India Used Car Loan?
Bank of India Used Car Loan is a financing facility that helps you purchase a pre-owned car through the bank's retail lending portfolio. It covers a portion of the car's value, determined by an authorised assessor, and is repaid through EMIs. The loan is available to individual and non-individual applicants who meet the bank's eligibility norms.
2.How much can I borrow under Bank of India Used Car Loan?
Bank of India Used Car Loan funds a percentage of the used car's market value or sale consideration, whichever is lower. An authorised assessor appointed by the bank determines the car's value before the loan is sanctioned. The exact funding percentage is listed in the loan features above.
3. Does Bank of India charge different interest rates for new and used cars?
No, Bank of India Used Car Loan does not differentiate interest rates between new and used cars. The bank applies the same competitive rate structure to both categories. Current rates are available on Bank of India's official website.
4.What is the maximum tenure for Bank of India Used Car Loan?
Bank of India Used Car Loan can be repaid over a tenure of up to 36 months. Repayment is made through Equated Monthly Instalments (EMIs). A longer tenure lowers your EMI but increases the total interest you pay.
5.Are there processing fees on Bank of India Used Car Loan?
Yes, Bank of India Used Car Loan carries a one-time processing fee calculated as a percentage of the loan amount, subject to a minimum and maximum cap. The fee is higher for corporate and partnership applicants. Senior citizens, bank staff, former employees and pensioners drawing a pension from the bank are exempt from this fee.
6.Who is eligible for Bank of India Used Car Loan?
Bank of India Used Car Loan is available to salaried employees in government, semi-government or corporate roles with a regular income, along with professionals and self-employed individuals who meet the bank's criteria. Non-Resident Indians can also apply with a guarantee from a resident Indian close relative. Individual applicants must not exceed 65 years of age at the time the loan is advanced.
7.Can companies or partnership firms apply for Bank of India Used Car Loan?
Bank of India Used Car Loan eligibility for non-individual applicants covers companies, partnership firms, proprietary concerns and other qualifying business entities. Hindu Undivided Families (HUFs) do not qualify under this loan. Check with Bank of India for the specific documentation your entity type requires.
8.How is the interest rate calculated for Bank of India Used Car Loan?
Bank of India Used Car Loan interest for new borrowers is linked to the Marginal Cost of Funds based Lending Rate (MCLR), while existing borrowers may continue on the Base Rate system or migrate to MCLR. The applicable rate depends on the tenure benchmark chosen and the bank's prevailing spread. Check the current rates on Bank of India's official website.
9.What security does Bank of India take for a Used Car Loan?
Bank of India Used Car Loan is secured through a hypothecation agreement on the vehicle, registered with the Regional Transport Office (RTO). This means the bank holds a charge on the car until the loan is repaid. Full ownership of the vehicle transfers to you once the loan is completely repaid.
10.Can I use an EMI calculator for Bank of India Used Car Loan?
Yes, Bank of India provides a Used Car Loan calculator that computes your monthly EMI within minutes. It also generates an amortisation table showing your total liability over the loan tenure. This helps you plan your repayments before applying.
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