Central Bank of India Car Loan
Central Bank of India provides a comprehensive car loan scheme to its customers. The bank offers monetary assistance for financing both new cars and pre-owned/old cars. Borrowers get the flexibility to select the loan tenure to suit their needs. The principal loan amount, along with the interest accumulated, can be paid back in Easy Monthly Instalments (EMIs). The interest rates offered are really affordable and practical. This helps you in keeping your finances and the monthly budget balanced. Central Bank of India is known for its quick disbursal of loan and hassle-free documentation process.
Features and benefits of Central Bank of India Car Loans
- The loan can be availed for new and pre-used/old cars.
- This car loan is provided only for cars of personal use, and not for passenger vehicles.
- The quantum of finance provided for buying new cars is Rs.75 lakhs and for second hand/pre-used cars is Rs.10 lakhs.
- The car loan sanctioned is only for the on road price of the car, i.e Cost Of car + Registration Charges + Insurance + Road Tax. Any cost incurred over and above this (accessories, etc.) shall not be financed by the bank.
- Hypothecation is a must for cars financed by Central Bank of India. The same should be registered with Regional Transport Office Authorities.
- The loan margin is as follows –
| Loan Amount | Margin (minimum) |
| Up to Rs.20 lakhs | 10% |
| More than Rs.20 lakhs | 20% |
| Any amount – for old vehicles | 25% |
The repayment period has been especially designed for the convenience of borrowers. It also depends on the type of vehicle (car or two wheeler) and the age of the car, if it is a pre-owned/second hand car. The table below provides a comprehensive list of the repayment period (in months)
| Car type | Repayment period (months) |
| New Car | 84 |
| Old car – up to 3 years old | 60 |
| Old car – more than 3 years old | 48 |
Central Bank of India Car Loan interest rates
Central Bank of India offers car loan at practical and easily affordable rates of interest. This makes it easier for borrowers to repay the loan within the stipulated tenure. The rates of interest also depends on various factors like the loan tenure, type of vehicle and loan repayment period.According to new mandate by the RBI, the current interest rates of the bank depend of the 1-year Marginal Cost of Funds-Based Lending Rate (MCLR) system. The table below provides a comprehensive list of the interest rates.
| Type of car | Rate of interest |
| New car | 1- Year MCLR + 0.40% |
| Old/pre-owned car | 1-Year MCLR + 1.50% |
The rate of interest for Central Bank of India Car Loan remains same for both floating and fixed rate.
The rate of interests mentioned above are subject to change every year as per the ongoing MCLR rate offered by the bank. Make sure you know the current rates before you apply for a car loan at Central Bank of India. In order to learn the current rate of interest, get in touch with your concerned branch or call the friendly customer care team of the bank.
Central Bank of India Car Loan Eligibility Criteria
- The applicant needs to be at least 18 years old to avail this car loan and cannot be over 65 years old.
- The applicant need to be one of the following, with a steady source of income –
- Self-employed
- Independent entrepreneur
- Permanent salaried employees
- Farmers are also eligible to apply for this loan, irrespective of their land holding or being engaged in any agricultural activities (in terms of production) or any other allied activities.
- Non-resident Indians are also eligible to apply for this loan, so can companies, societies, proprietorship & partnership firms etc.
- The minimum gross income of the applicant (salaried/non-salaried) should be Rs.2.4 lakh per annum.
