Being one of the top nationalized banks in India, Indian Overseas Bank is a customer centric financial institution committed to delivering innovative banking products by leveraging the latest technology. IOB aims to provide cost effective solutions to its large clientele across several states in India. True to its motto about touching hearts and spreading smiles, Indian Overseas Bank advocates the practice of “Green Banking”, as a contributor towards protecting our environment and the world we live in. Aiming to be globally recognized as the preferred banking partner, IOB functions according to its code of ethics offering an extensive array of products. IOB’s product portfolio comprises of personal banking, corporate banking, NRI banking, fund management and agricultural banking. Under its retail banking umbrella, IOB’s key product is the Indian Overseas Bank car loan available for the purchase of both new and used cars.
|Loan Amount||Processing Fees|
|Rural Areas||Up to Rs 2 lakhs||Rs 134/-|
|Above Rs 2 lakhs||Rs. 134/- for every lakh|
|Urban Areas||Up to Rs 2 lakhs||Rs 168/-|
|Above Rs 2 lakhs||Rs. 168/- for every lakh|
To qualify for an Indian Overseas Bank used car loan, applicants need to be permanent employees in Government offices, PSU or private enterprises. Self-employed professionals can also apply for a used car loan in the name of the company or the firm. Non-resident Indians can also procure an Indian Overseas Bank used car loan with a guarantee from a local resident Indian.Income eligibility
Applicants are required to have a take home pay of more than 50% of their gross salary after the deduction of provident fund and insurance. The total monthly family income of the applicant should not be less that Rs 8000/- to meet the eligibility criteria for an IOB used car loan.
IOB’s Pushpaka Loan can be used to finance a used/pre-owned car, with the interest depending on the sanction date of a loan. New customers will be automatically moved to the MCLR based platform, while existing borrowers have an option between MCLR and Base Rate.
Indian Overseas Bank Marginal Cost of Funds Based Lending Rate (MCLR) (For new borrowers)
Recent RBI guidelines have made it mandatory for banks to move their interest to an MCLR based platform, primarily to ensure that the rates reflect current trends. The table below indicates the current MCLR benchmark rates at IOB.
|MCLR Benchmark Tenure (Period)||Benchmark Rates (MCLR)|
Used car loan interest rates – May 2016
IOB charges an interest equivalent to 10.20% per annum on its Pushpaka loan for used cars.
IOB Base and Prime Lending Rates (For existing borrowers)
|Base Rate||9.70% per annum (from 15/10/2015)|
|Prime Lending Rate||15.50% per annum (from 05/12/2011)|
Indian Overseas Bank interest rate for used cars (Based on Base Rate)
Existing customers who wish to continue with their old system of interest will pay interest as per the current base rate. IOB can charge an additional percentage over and above the base rate, depending on provisions like the tenure and loan amount.
Note: Interest rates mentioned here are applicable as of June 7, 2016. IOB holds the right to change these rates at its own discretion, without prior intimation. Eligible borrowers should check rates prevailing at the time of loan sanction.
EMI calculators are efficient tools to calculate the expenditure you will be incurring on an Indian Overseas Bank used car loan. BankBazaar’s used car loan EMI calculators give a comprehensive report of how much you would be spending on a used car loan, with respect to the interest rates and the loan tenure selected. Present under the “Finance Tools” menu on the BankBazaar homepage, these EMI calculators are designed to produce a detailed forecast based on certain inputs like loan tenure, loan amount, interest rates and processing fees. Customers have the option of selecting any loan amount or tenure using the ruler scales provided on the calculator page. The repayment schedule calculated includes the EMI amount and the total interests that a borrower would be paying to IOB when he avails an Indian Overseas Bank used car loan.
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