This seasoned banking and financial institution was founded by a cartel of imminent businessmen in 1906. Since then, the Mumbai headquartered bank has grown leaps and bounds by expanding footprint to every nook and corner of the country. Bank of India was under private ownership until July 1969 when it was nationalised by the Government of India. At present, it has over 4828 branches in India along with 56 offices in 22 foreign countries.
For BOI, a host of retail loan products represent the retail lending portfolio clubbed with other credit products that cater to the needs of corporate customers. In car loan segment, the bank extends financing facility for used cars at appealing rates and attractive terms.
For used cars, the bank can finance up to 70% of the market value or sale consideration, whichever is lower. This quantum of financing makes it one of the most considerable in the market today. The actual value of the car may be determined by the bank authorised assessor as a part of the process.Marginally Low Interest Rates
Bank of India seems to stay away from the concept of differentiating interest rates for new and used cars. For used car procurement, the bank lends at an interest rate of 11.45% pa, which makes it very economical and one of the lowest in this segment.Favorable Loan Tenure
With Bank of India, you can payback the loan amount in Equated Monthly Installments(EMI’s) of up to 36 months. Choose a tenure that matches your repayment capacity.One Time Processing Fees/Handling Charges
The banks bills a processing fee of 1% of the loan amount towards handling the documentation. The min. fee is Rs. Rs.500 with an upper ceiling of Rs.10,000. This fee will be higher for corporates and partnership firms.
Note: The processing fee component will be waived for senior citizens, staff members and former employees of the bank. Pensioners drawing pension amount from the bank are also eligible for a waiver.Loan Security
The loan provided for the used car is based on hypothecation agreement and be registered with the local RTO(Regional Transport Office). After full repayment of the loan with interest and other charges, full ownership rights will be conferred on the borrower.
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 (Period)||Benchmark Rates (MCLR)|
Used car loan interest rates
Interest rates charged by Bank of India include a Business Strategy Spread (BSS) of 0.30%. This BSS is over and above the MCLR, with the final interest payable highlighted below.
|Used car loan MCLR interest rate||BSS (0.30%) + MCLR + 1.25%|
Bank of India Base Rate (For existing borrowers)
The current Base Rate at Bank of India is 9.70% per annum, effective 05/10/2015.
Bank of India interest rate for used cars (Based on Base Rate)
Existing borrowers can continue to pay interest computed according to the base rate or choose to migrate to MCLR. The interest charged by BOI depends on the tenure of a loan, with rates subject to change on a case to case basis.
Note: Interest rates mentioned above are as of June 6, 2016. These rates are subject to change without intimation and applicants should check prevailing rates with the bank.
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.