‘Pushpaka’ – Indian Overseas Bank’s car loan scheme comes with flexible repayment options, easy monthly payments and additional benefits. IOB customers can take car loans with the bank financing a relatively huge portion of the new car value when compared to its competitors.
Features of an IOB Car Loan
Customers looking for auto financing with flexible options and easy repayments should avail the Indian Overseas Bank car loan scheme – Pushpaka.
- Indian Overseas Bank finances up to 90% of the new car value for all customers.IOB car loan amount – An eligible customer can get new and used car loans at attractive interest rates from Indian Overseas Bank. The maximum loan amount that a borrower can get from the bank depends on the type of loan (new car loan and used car loan), the make and model of car, and in the case of a used car loan, the value of the car. For a new car, you can get up to 90% of the cost of the car. For a used car, you can get up to 75% of the market value of the car.
- IOB customers can repay their car loans with monthly EMIs for loan tenures up to 84 months. New car loans are repayable in 84 equated monthly installments while used car loans have a flexible repayment period with respect to the age of the second-hand/pre-owned vehicle, subject to a maximum loan tenure of 84 months.
- The bank requires all car loan borrowers to submit security for a new vehicle by hypothecation of the vehicle, by mentioning the bank’s name in the vehicle’s RC book as the borrower’s bank and by securing insurance for the full value of the new vehicle with the bank clause included.
- IOB charges different processing fees depending on the loan amount taken. For auto loans below Rs.5 lakh, a processing fee of 0.50% is charged, subject to a minimum of Rs.500. For auto loans above Rs.5 lakh, a processing fee of 0.60%, subject to a minimum of Rs.10,000 is charged by the bank.
- Indian Overseas Bank does not impose any pre-closure charges for customers looking to prepay their IOB car loans.
IOB Car Loan Interest Rates
As per the latest guidelines from RBI, the interest rates offered IOB is linked to MCLR (Marginal Cost Based Lending Rate). The retail credit scheme interest rate of IOB for 1-year MCLR is 8.40% effective from 10 October 2017.
| Pushpaka loan – 4-wheeler loans for new vehicle | 8.90% |
| Pushpaka loan – 4-wheeler loans for used vehicle | Up to Rs.10 lakh – 9.90%, Above Rs.10 lakh – 10.90% |
Note: The interest rate is subject to periodic revision as per the revised rates of GST, bank’s credit policy and RBI’s quarterly reviews. Make sure to confirm with the bank on prevailing rates at the time of applying and choose the terms accordingly.
IOB Car Loan Eligibility
Applicants need to qualify based on the mentioned employment and income criteria to be eligible to avail an IOB car loan.
Indian Overseas Bank requires that the applicant should be a permanent employee with any of the following employers – Government offices, private enterprises or public sector undertakings. Self-employed businessmen are also eligible to apply for an Indian Overseas Bank car loan. The loan needs to be applied under the name of the firm or the self-owned company.
Income eligibility
individuals need to have a take-home pay of more than 50% of the gross salary from their current employer. This income requirement should cross the 50% mark after the deduction of Provident Fund and insurance for an applicant.
Another IOB car loan income criteria that an individual needs to meet is that the total monthly income of applicant along with his spouse and all other incomes should be more than Rs 8000/-.
Documents required for an IOB Car Loan
The following documents must be submitted by salaried and self-employed professionals when applying for an IOB car loan:
- A duly-filled and signed car loan application form which is available on the bank website.
- Income proof – Salary certificate, IT return or assessment order.
- For used car loans, the applicant must get the valuation certificate from 2 reputed car dealers.
- Address proof – Utility bills (telephone or electricity bills) or Ration card.
- Identity proof – PAN card, Driving License, Voters ID Card or Passport.
