Indian Overseas Bank Car Loan: Eligibility & Interest Rate
Last Updated : April 25, 2016, 6:02 a.m.
Not many able to fulfill the dream of owning the car. The reason being the lack of finance or the inadequate planning for the same. If you do not have the requisite finances, then make sure you cut down on dining at expensive restaurants, movie tickets and travelling exotic locations across India and the world, etc. Doing the same can help you accumulate significant savings and make you fit into the eligibility criteria set by banks across India for car loan. You can take car loan from banks such as State Bank of India (SBI), ICICI Bank, HDFC Bank, Axis Bank, Bank of Baroda, etc. We will today scan the car loan offering of Indian Overseas Bank (IOB). First discuss the features and charges of the bank’s car loan.
Features, fees & charges
- Minimum loan amount- Rs 1 lac
- Maximum loan amount-up to 90% of the car’s ex-showroom price
- Ex-showroom price includes the charges that the dealer pays to obtain the car from the manufacturer, as well as the excise duty paid by it to the state government on the purchase
- Interest rate-10.20% per annum
- Repayment tenure up to 7 years
- Car loan gets approved after 24 hours of documentation process
- Processing fee of Rs 2,825 for loan up to Rs. 2.5 lacs and Rs 3,850 for loan within Rs 2.5 lacs-4 lacs
- Maximum processing fee of Rs 5,000
- No prepayment allowed within 6 months from the disbursement of car loan
- No prepayment charges
- Foreclosure of loan will bear a charge at 4% of POS if made within a year
- For foreclosure of loan from 13-24 months, you need to bear a charge at 3% of POS
- Post 24 months, there are no foreclosure charges
- Late payment penalty of 2% per month
- CIBIL charges (Only on request)-Rs 50
- Cheque swapping charges-NIL
- Loan cancellation/re-booking charges-You will have to bear interest charges from the date of disbursement till the cancellation of loan
- Duplicate repayment schedule charges-NIL
- Loan reschedulement charges- Rs 1,00 0
- Special NOC-NIL
- Stamp duty, legal, repossession and incidental charges at actuals
After discussing the charges, now get into the eligibility criteria of IOB Car loan
Eligibility Criteria
| Parameters | Salaried Professionals | Self-employed |
|---|---|---|
| Age | 21-58 years | 21-65 years |
| Minimum Income | Minimum net income of Rs 1,00,000 per annum | Minimum annual net profit of Rs 60,000 for standard cars, Rs 1,00,000 for premium and mid-sized cars |
| Employment/Business Continuity | At least 1 year with current employer with overall experience of 2 years | At least remain in the business of 3 years |
Now see the documents that you need to submit for availing car loan.
Documents required for Salaried & Self-employed professionals
- Car loan application form
- Salary Certificate, IT return or assessment order
- For used cars, you need to get the valuation certificate from two reputed car dealers
- Address Proof-PAN Card, Driving License/Voter ID Card/Passport/Ration Card etc. of applicant and guarantor(s), if any
Table showing interests and EMIs on car loan of Rs 5,00,000 for different periods at IOB
| Loan Amount ( In Rs.) | Tenure (In years) | Interest Rate (p.a) | EMI ( In Rs.) | Total Interest ( In Rs.) | Total Amount (Principal +Interest) ( In Rs.) |
|---|---|---|---|---|---|
| 5,00,000 | 3 | 10.20% | 16,181 | 82,501 | 5,82,501 |
| 5,00,000 | 4 | 10.20% | 12,729 | 1,11,010 | 6,11,010 |
| 5,00,000 | 5 | 10.20% | 10,673 | 1,40,368 | 6,40,368 |
| 5,00,000 | 6 | 10.20% | 9,313 | 1,70,567 | 6,70,567 |
| 5,00,000 | 7 | 10.20% | 8,352 | 2,01,598 | 7,01,598 |
(Updated on: 28th October, 2016)