Offering competitive interest rates, Indian Overseas Bank (IOB) provides car loans for purchasing new vehicles. With interest rates starting from 10.05% p.a. for new cars, IOB aims to make car ownership affordable and accessible for individuals.
The bank considers various factors such as income, credit score, loan amount, and tenure while determining the interest rate. Customers can enjoy a maximum loan tenure of 84 months and funding of up to 90% of the car's price.
IOB's new car loan offering comes with lower processing charges, faster disbursement, and a hassle-free sanctioning process, making it a convenient choice for prospective car buyers.
Quantum of Loan: Up to 90% funding of the new car price
Interest Rates: Ranging from 10.05% p.a. to 11.05% p.a.
Repayment Period: Up to 84 months (7 years)
Processing Charges: 0.50% for loans up to Rs. 5 lakh and 0.60% for loans above Rs. 5 lakh
New Car and Used Car Loans: Funding available for both new and used cars
Co-applicants: Allows inclusion of co-applicants to enhance loan repayment capacity
Security: The purchased vehicle acts as security, with the bank's lien marked in the Registration Certificate
Eligibility: Permanent employment in a government office, public sector undertaking, reputed private enterprise, or self-employed professional
Income Eligibility: Take-home pay of more than 50% of gross salary after deductions
Special Concession: Based on a good CIBIL score
Loan amount: Up to 90% of the cost for new cars, 75% of the market value for old cars, and 90% of the cost for two-wheelers
Documents required: Application form, proof of income, quotation/proforma invoice (for a new car/two-wheeler), valuation certificate (for a used car).
IOB Bank's car loan schemes offer flexible repayment options, competitive interest rates, and convenient features to meet the financing needs of individuals looking to purchase a new car.
In 2024, the IOB Bank car loan offers competitive interest rates for financing new and used cars. The minimum interest rate starts from 10.05% per annum, while the maximum interest rate is 11.05% per annum. The actual rate offered may vary based on factors such as the loan amount, tenure, income, and creditworthiness of the borrower.
When it comes to processing fees, the bank charges 0.50% of the loan amount for loans up to Rs. 5 lakh, with a minimum fee of Rs. 500. For loans above Rs. 5 lakh, the processing fee is 0.60% of the loan amount, with a maximum fee of Rs. 10,000.
It's important to note that other charges, such as documentation charges, prepayment charges, and late payment penalties, may also be applicable. These charges may vary, so it's advisable to check the specific terms and conditions provided by the bank before availing of the car loan.
The IOB Bank car loan interest rate varies based on the applicant's CIC (Credit Information Company) or CIBIL (Credit Information Bureau India Limited) score. While specific details may vary, a minimum CIBIL score of 750 is generally desirable for loan approval.
For applicants with a CIBIL score between 750 and 799, the bank may offer a concessional interest rate of 0.25%. Those with a CIBIL score of 800 or above may be eligible for a higher concession of 0.50% (subject to not falling below the Repo Linked Lending Rate or RLLR).
Income: The borrower's income plays a crucial role in determining the interest rate. A higher income may lead to a lower interest rate as it indicates a stronger repayment capacity.
Credit Score: Credit score is a significant factor considered by banks. A good credit score demonstrates creditworthiness and responsible financial behaviour, which can result in a lower interest rate. On the other hand, a low credit score may lead to a higher interest rate or even loan rejection.
Loan Amount: The loan amount requested also affects the interest rate. Higher loan amounts may be associated with slightly higher interest rates due to the increased risk for the lender.
Loan Tenure: The duration of the loan, commonly known as the tenure, can impact the interest rate. Longer tenures may have slightly higher interest rates compared to shorter tenures.
Type of Vehicle: The type of vehicle being financed can also affect the interest rate. Different vehicle segments may have varying levels of risk associated with them, leading to potential interest rate adjustments.
Employment: Permanent employees of government offices, public sector undertakings, reputed private enterprises, or self-employed professionals are eligible.
Age: Minimum age requirement is 18 years and above.
Income: Confirmed service with take-home pay of more than 50% of the gross salary, after PF and insurance deductions. Total monthly income, including spouse and other sources, should meet the minimum income threshold.
Citizenship: Indian residents and NRIs can apply. NRIs need a suitable guarantee from a resident Indian acceptable to the bank.
Specific requirements may vary, so it's advisable to check with IOB Bank for precise eligibility criteria for their new car loan.
To apply for an IOB Bank car loan, follow these steps:
Research: Gather information about the car loan features, interest rates, and eligibility criteria offered by IOB Bank.
Check eligibility: Ensure you meet the bank's eligibility criteria, such as permanent employment in a government office, public sector undertaking, reputed private enterprise, or self-employed professional. Non-Resident Indians can also apply with suitable guarantees.
Documentation: Prepare the necessary documents, including proof of identity, address, income, and quotations/invoices for the car.
Application: Fill out the car loan application form with accurate details.
Submission: Submit the completed application form along with the required documents to the nearest IOB Bank branch.
Verification: The bank will verify your application and documents to assess your creditworthiness.
Loan approval: If your application is approved, the bank will inform you of the loan amount, interest rate, and repayment terms.
Documentation: Complete the necessary documentation and formalities as instructed by the bank.
Disbursement: Once all the formalities are completed, the loan amount will be disbursed to the car dealer or seller.
When negotiating for the best car loan interest rates with IOB Bank, consider the following tips:
Improve your credit score: A good credit score can help you secure better interest rates. Before applying for a car loan, work on improving your credit score by paying bills on time, reducing debt, and correcting any errors in your credit report.
Demonstrate financial stability: Provide evidence of a stable income and financial capability to repay the loan. A strong financial profile increases your bargaining power.
Consider a larger down payment: Making a substantial down payment reduces the loan amount, which can help negotiate for a lower interest rate.
Explore special promotions or offers: Keep an eye out for any promotional campaigns or special offers by IOB Bank. These may include discounted interest rates or reduced processing fees.
Negotiate loan terms: Apart from interest rates, negotiate other loan terms such as loan tenure, prepayment penalties, and processing fees. This can lead to a more favourable overall loan package.
Seek professional assistance: Consider consulting with a financial advisor or loan broker who can help negotiate on your behalf and provide valuable insights.
IOB Bank offers car loans starting from a minimum amount to no maximum limit, subject to the vehicle's value and eligibility criteria.
The minimum CIBIL score required to avail of a car loan from IOB Bank is 750.
Yes, self-employed individuals can apply for a car loan from IOB Bank, provided they meet the eligibility criteria and submit the required documents to demonstrate their income and repayment capacity.
IOB Bank may charge a prepayment penalty for car loans if the loan is prepaid before the completion of the specified lock-in period. The specific terms and conditions can be obtained from the bank.
IOB Bank offers car loan tenures of up to 84 months (7 years) for the repayment of the loan, subject to the applicant's eligibility and loan amount.
Yes, NRIs can apply for a car loan from IOB Bank.
The documents required for an IOB Bank car loan application may include proof of identity, address proof, income documents, bank statements, and the vehicle's quotation or proforma invoice. Additional documents may be required based on individual circumstances.
Having a co-applicant for an IOB Bank car loan is not mandatory.