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Over the past eight decades, Bank of Maharashtra has established itself as a strong player in the public banking sector, having the largest network of branches in the state of Maharashtra. Headquartered in Pune, the bank has grown into a tech-savvy, customer centric financial institution offering diverse banking solutions to its customers across various states in India. With more than half of Maharashtra’s population being in the rural areas, the bank has introduced various schemes and financial instruments catering specifically to the agriculture based rural areas. The bank also targets other urban customers with a gamut of banking products ranging from loans, credit cards, deposits, investments, etc., Bank of Maharashtra offers vehicle loans for both new and used cars with the Maha Bank Vehicle Loan Scheme available specifically for the purchase of second hand cars.
Bank of Maharashtra used car loans are available at attractive interest rates for the purchase of second hand four wheelers not older than three years. The used car loan given by Bank of Maharashtra is a term loan and can be procured by salaried individuals, entrepreneurs and agriculturists.Quantum of Loan
Bank of Maharashtra gives up to 20 times the net monthly income for salaried employees, depending on the last salary drawn and the bank’s deduction norms. For all other types of applicants, the bank provides up to 2 times the average annual income based on the latest Income Tax returns filed and the gross taxable income, whichever is lower. This is again decided based on the bank’s deduction norms. Bank of Maharashtra as a maximum cap on the loan amount set as Rs 5 lakhs for second hand four wheelers.Loan Margin
Bank of Maharashtra finances up to a minimum of 50% of the value of the used car as per the valuation report of the insurer.Loan Repayment
Borrowers can repay their Bank of Maharashtra used car loans with loan tenures up to 60 months.Processing Charges
Bank of Maharashtra levies a processing fee of 0.25% of the loan amount or a minimum of Rs 500/-.Security for the loan
Hypothecation of the vehicle is required and the bank’s hypothecation charge should be registered with the Regional Transport Office Authorities. Specific to used cars, the insurance policy taken previously for the vehicle should be transferred in the name of the purchaser along with the bank clause and should also be registered with the RTO authorities. A guarantor is not mandatory for customers taking a Bank of Maharashtra used car loan.Deductions
The deductions on the loan amount should not exceed 60% of the gross income inclusive of the monthly installment amount.
Applicants should be 18 years old or above to qualify for a Bank of Maharashtra used car loan.
Permanent salaried individuals working in Central and State Government organizations, corporate salary account holders, PSU employees with a minimum employment experience of two years and 1 year in their current company are eligible to apply for a used car loan. The applicant should also have maintained a 1 year relationship with Bank of Maharashtra to apply for the used car loan.
Businessmen and self-employed entrepreneurs with a regular source of income as shown in their last two years IT returns are eligible to apply for a used car loan from Bank of Maharashtra.
Agriculturists having a minimum of 5 acres of land engaged in production oriented activities or a minimum land holding of 5 acres of irrigated land and easily accessible liquid assets qualify for a Bank of Maharashtra used car loan.
Interest on the Mahabank Vehicle Loan for used cars depends on the relationship of a borrower with the bank. Existing borrowers can pay interest as per the base rate, while new borrowers will be charged an interest based on MCLR.
Bank of Maharashtra Marginal Cost of Funds Based Lending Rate (MCLR) (For new borrowers)
MCLR takes factors like cash reserve ratio, repo rate, current fiscal trends, etc. to compute the interest payable. The tenure of a loan plays a key role in determining the final amount payable, with the table highlighting the rates for May 2016.
|MCLR Benchmark Tenure (Period)||Benchmark Rates (MCLR)|
Used car loan interest rates – May 2016
The interest payable by new borrowers under MCLR is highlighted in the table.
|Mahabank Vehicle loan||MCLR Interest|
|For used cars||MCLR + 0.75%|
Bank of Maharashtra Base and Prime Lending Rates (For existing borrowers)
|Base Rate||9.70% per annum, effective 05/10/2015|
|Prime Lending Rate||15% per annum, effective 01/10/2011|
Bank of Maharashtra interest rate for used cars (Based on Base Rate)
Existing borrowers who do not wish to migrate to MCLR can pay interest according to the base rate. The table below indicates the current rate applicable in such cases.
|Mahabank interest||Base Rate + 0.75% per annum|
Note: Interest rates mentioned here are subject to change without prior intimation. Rates are as of June 2016. Applicants are advised to check prevailing rates before applying.
Any individual intending to take a car loan always worries about the amount of interest rates and EMIs he will pay to the bank, adding up to the total cost of the car. Any borrower would not want to overstretch and repay any loan with additional funds. A reliable tool available for prospective borrowers are car loan EMI calculators which give a detailed forecast of how much EMI, interest and principal a customer would have to pay towards his used car loan. BankBazaar’s car loan EMI calculators give customers an elaborate repayment schedule of their Bank of Maharashtra used car loans for the selected loan tenures. Customers need to input certain details like loan amount, tenure, processing fees, interest rate charged by Bank of Maharashtra for used car loans to get a comprehensive loan repayment statement from the car loan EMI calculator tool present under the “Finance Tools” menu on the BankBazaar home page.