The Oriental Bank Used Car Loan is specifically designed for the purchase of second hand / used vehicles and comes with the following features.
Customers can avail a loan amount that is 20% of market value (under TVS) and 30% of market value (Non TVS), as assessed by the valuer OR the purchase value of the vehicle, whichever amount is less.
The maximum repayment term permissible on this loan is 36 months.
As collateral security for this loan, applicants need to provide one third party personal guarantee, acceptable to the bank
The vehicle must not be older than 2 years at the time of loan application and must be in good running condition.
Oriental Bank of Commerce Used Car Loan Interest Rates
Individuals looking to purchase a used car can avail a loan under “Oriental Car”, a specialised product which finances second hand cars at low interest rates. Borrowers will be charged an interest depending on the date of loan sanction, with loans sanctioned after April 1, 2017 falling under the purview of MCLR.
Oriental Bank of Commerce Marginal Cost of Funds Based Lending Rate (MCLR) (For new borrowers)
OBC introduced MCLR benchmark rates in accordance with RBI’s guidelines, with these benchmarks expected to change on a regular basis. Fluctuations in current economic conditions will reflect in these rates, offering customers a stable interest platform.
| MCLR Benchmark Tenure (Period) |
Benchmark Rates (MCLR) |
| Overnight |
9.35% |
| 1 month |
9.40% |
| 3 months |
9.45% |
| 6 months |
9.50% |
| 1 year |
9.60% |
Used car loan interest rates – July 2017
New customers of OBC will be required to pay interest as per the new MCLR benchmark. The current applicable rate stands at 11.60% per annum. This is computed through a simple formula:
Interest rate = MCLR (1 year) + 3.00% = 11.60%
Customers who have a healthy relationship with the bank can avail a discount on this interest, with OBC willing to reduce rates by 0.25% per annum, depending on certain factors.
Oriental Bank of Commerce Base Rate (For existing borrowers)
| Base Rate |
9.70% per annum (from September 30, 2015) |
Oriental Bank of Commerce interest rate for used cars (Based on Base Rate)
Existing borrowers who do not wish to move to an MCLR platform can continue paying interest computed according to the base rate. The current applicable rate for them is 12.70% per annum. This is computed using a simple formula:
Interest rate = Base Rate + 3.00% = 12.70%
OBC can consider reducing this rate for customers who have a longstanding relationship with the bank.
Note: Interest rates mentioned above are subject to change without prior intimation and are valid as of June 8, 2017. Applicants are advised to check rates before applying.
Oriental Bank Used Car Loan Eligibility Criteria
The Oriental Bank Used Car Loan can be applied for by salaried persons, retired individuals, pensioners, business owners, professionals and agriculturists.
Documentation Required for Oriental Bank Used Car Loan
In order to apply for this loan, applicants need to furnish the following documents:
- Proof of Identity & Address – PAN Card, Driving License, Voter ID Card, Passport, Ration Card etc. (of applicant & guarantor)
- Salary Slip or any proof of permanent / regular employment
- Proof of Age
- Proof of Employment Duration (for confirmed permanent Govt. employees) / Proof of Confirmed Service OR Proof of Length of Service & Income (for IT / professionals)
- Proof of Income – Balance Sheet & Profit and Loss account for past 3 years
- Proof of Date of Business Establishment (for businessmen) / Proof of Land Holding (Agriculturists)
- Copy of Income Tax Returns/Form-16 for last two/three years
- Bank account statement for last 6 months
- Passport sized photographs (of applicant(s) and guarantors
- Proof of Income of spouse (in case he/she is a guarantor)
- Information sheet of guarantor(s) stating their details like PAN card, identity proof, residence, age and income.
- Certificate stating the age of the vehicle, residual life, valuation of vehicle etc. obtained from approved surveyors of General Insurance Companies / authorized dealers under True Value Scheme
- Registration Certificate and Insurance documents of vehicle
Details
Paperless approval option available
