Indian Overseas Bank Used Car Loan
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.
Features of an Indian Overseas Bank Used Car Loan
- Indian Overseas Bank offers car financing for used cars aged not more than 5 years at low interest rates.
- IOB approves up to 75% of the market value of the used vehicle financed.
- Indian Overseas Bank used car loans come with flexible repayment options up to a maximum tenure of 84 months, depending on the age of the vehicle.
- The bank requires security for the used car loan in the form of hypothecation of the vehicle and the bank's lien should be recorded in the RC book of the vehicle financed. Additionally the used vehicle should be insured for the full value along with the bank clause.
- Indian Overseas Bank levies a processing charge as follows depending on the loan amount sanctioned.
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 |
Eligibility criteria for an Indian Overseas Bank Used Car Loan
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.
Documents required
- Fully filled-in application form
- Salary certificate
- Income Tax Returns
- Income Proof - Assessment Order
- Valuation certificate from two auto dealers
Indian Overseas Bank Used Car Loan Interest Rates
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.
Used car loan interest rates -
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 | 8.85% per annum |
Prime Lending Rate | 12.05% per annum |
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 calculator for Indian Overseas Bank Used Car Loans
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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