Used car loan of BOI and its impact on your finance

Car Loan Rates EMI 2017 242 views

Used car loan can be a good option to avail as the vehicle depreciate around 10-20% in its value during the first year itself. For example-You can buy a year old Skoda Octavia RS, whose new models are available for about Rs 15 lacs, at a much lesser price of around Rs 10 lacs. Further, an old model of Honda Accord can be available at the cost of new Maruti Swift. Moreover, the used car loan market is gaining momentum with the sale of over 3 million used cars compared to 2.2 million new cars in India. In addition, two out of every three car loan application are made for used vehicles. This gives you an idea of the rapid adoption of used cars among people in India. Seeing such positive trends, several lenders are coming up with suitable financing options for used cars. One such lender is Bank of India (BOI), a major public sector bank. We, through this article, will let you acquaint with the basic features, eligibility, interest rate & other charges, documentation related to used car loan of BOI.

Features, fees and charges

  • Maximum Loan- 80% of the car value
  • Maximum Loan Tenure- 5 years
  • Age of the car must not be more than 3 years
  • Interest Rate- 10.95% per annum
  • Processing Fee-1% of the loan amount
  • Minimum Processing Fee- Rs 500
  • Maximum Processing Fee- Rs 10,000
  • Minimum Margin- 30% of the depreciated value of the car or value assessed by the valuer
  • Other charges as applicable by the bank

Eligibility Criteria

ParametersSalaried ProfessionalSelf-employed
Age21-65 years21-65 years
Minimum Income Not specified
Not specified
Employment/Business Continuity Minimum work experience of 2 years with one year with the existing employerBeen in the business for at least 2 years

Documentation

ProofsSalaried ProfessionalSelf-employed
Age ProofPassport/PAN Card/ Voter ID card, Photo Driving License with birth date/Photo ration card with DOB/Employer certificate/ID/School/College Leaving Certificate Passport/PAN Card/ Voter ID card, Photo Driving License with birth date/Photo ration card with DOB/Employer certificate/ID/School/College Leaving Certificate
Identity Proof PAN Card/ Voter ID/Passport/Driving License, photograph PAN Card/ Voter ID/Passport/Driving License, photograph
Income Proof Latest 3 month salary slip, Form 16One previous year ITR and Adv. Tax Challan of current year showing the payment of higher tax compared to the previous year
Address Proof Latest Telephone Bill/ Electricity Bill/Property Tax Receipt/Passport/ Voter ID Latest Telephone Bill/ Electricity Bill/Property Tax Receipt/Passport/ Voter ID
Sign Verification Proof Passport/Photo Driving License with birth date (laminated, recent , legible)/ Credit Card Statement with Credit Card Copy/Banker's Verification, Copy of Margin money paid to bankPassport/Photo Driving License with birth date (laminated, recent , legible)/ Credit Card Statement with Credit Card Copy/Banker's Verification, Copy of Margin money paid to bank
Application Form with Photograph YesYes
Car Valuation Report YesYes
Loan Agreement Duly Signed with RTO Set (Post Sanction/Pre-Disbursement Documentation) YesYes
Standing Instruction (SI) Request / ECS Form / Post Date Cheques (PDCs). Security Cheques required for SI and ECS (Post Sanction/Pre-Disbursement Documentation) YesYes
Must Read  Go online, do advertising to get the right value for your used car

Table showing interests and EMIs on used car loan of Rs 3,00,000 for different periods at Bank of India

Loan Amount Tenure in YearsInterest RateEMITotal InterestTotal Amount (Principal+Interest)
Rs 3,00,000110.95% Rs 26,508
Rs 8,090Rs 3,18,090
Rs 3,00,000210.95% Rs 13,975 Rs 35,409 Rs 3,35,409
Rs 3,00,000310.95% Rs 9,815
Rs 53,322 Rs 3,53,322
Rs 3,00,000410.95% Rs 7,746 Rs 71,826 Rs 3,71,826
Rs 3,00,000510.95% Rs 6,515
Rs 90,915Rs 3,90,915

Now you have the data available with you to assess your feasibility for the used car loan of Bank of India.

 

 

(Updated on: 21st October, 2016)