Bank of India Car Loan

Bank of India Car Loan Key Features – Apr 25 2024

About Bank of India Car Loan

Bank of India Bank provides Instant Car Loan at an attractive rate of interest to the consumer for buying their dream car whether new or second hand. It is an easily available loan that can be procured by anyone even by ones who have a slightly low credit/CIBIL score.

Advantages of Bank of India Car Loan

Bank of India Car Loan Eligibility

Bank of India Car Loan Interest Rates and Charges

How to Increase Your Eligibility for Bank of India Car Loan

• Opt for a shorter tenure: When you opt for a shorter tenure to repay the money, the EMI you will pay each month will be higher in the Bank of India. This will be an indication of your higher repayment capacity for the Bank of India Car Loan, which will build a sense of confidence in you.
• Keep your credit score in check: If you wish to increase your Eligibility for a Car Loan for a Bank of India car loan, ensure that you have a credit score of over 750. You can use the Free Credit Score tool to check and maintain such a healthy credit score for the Bank of India Car Loan.
• Maintain a low debt-to-income ratio: A low debt-to-income ratio in the Bank of India means you have a good balance between your earnings and your spending. This is because before the Bank of India decides to lend to you, they will check the percentage of your earnings that goes into paying your debts, and a low debt-to-income ratio will indicate your high repayment capacity for the Bank of India Car Loan.
• Apply for a loan for a lower amount: By applying for a loan for a lower amount, you can increase your eligibility for a Bank of India car loan. In addition, a lower loan amount means that the loan will be repaid faster; therefore, the chances of you being eligible for a Bank of India loan are higher.

Factors Affecting Bank of India Car Loan Eligibility

The eligibility criteria for a car loan for the Bank of India will depend on the below-given factors:

• Income: If your income is on the higher side, there is a good chance that your eligibility for a Bank of India car loan will be higher. This is because a higher income indicates a higher repayment capacity. To be eligible for a Bank of India car loan, your yearly income should be at least Rs.3 lakh.
• Loan amount: Your Eligibility Criteria for Car Loan from Bank of India will be higher if you apply for a lower loan amount as if the loan amount is lower, Bank of India knows that the loan will be paid off quicker. Hence, they will be more confident to give you the loan for the Bank of India Car Loan.
• Repayment tenure: Choosing a longer repayment tenure can decrease your eligibility for a car loan in the Bank of India. It might give an impression to the bank that you do not possess the ability to pay Your Bank of India loan.
• Credit score: This is an important factor that every bank, including the Bank of India, considers when determining your car loan eligibility. A credit score of 750 and above is considered to be a healthy credit score by the Bank of India and most lenders.
• Relationship with the bank: As stated earlier, Bank of India offers instant car loans to their existing customers, which allow Bank of India’s customers to avail a loan instantly, at their convenience, with very few List of documents required for a Car Loan.

Bank of India Car Loan Documents Required

Salaried Individual

Self-Employed Individuals

Self-Employed Non-Individuals:

1. Partnership Firms/Societies

2. Private Limited/Limited Companies

Processing fees* (Non – refundable)

All loan providers from both the private and public sectors usually charge some amount as a fee for providing a loan to the applicant, these fees are basically used to cover all the external expenses at the time of providing the loan or during the loan tenure. The two most commonly charged loans are as follows:

Charges for Foreclosure – If you try to pay off the whole debt before the expiration of the term, you’ll have to pay certain fees. After paying one EMI, the Bank of India makes prepayment of a vehicle loan with no penalty.

Processing Charge – A processing charge of 0.25 percent of the loan sum is requested by the Bank of India. 

Bank of India Car Loan EMI Calculator

The applicant has the option to know the EMI’s before availing of a Car Loan. Thus, you can easily check through the link below:

Car Loan EMI Calculator

Bank of India Car Loan Types

Bank of India Bank offers different types of car loans to its customers. You have the option of choosing the offer which suits your need the best. It offers the following types of Car Loans:

1. New Car Loan –  Those who wish to buy a new car, this is the scheme for you. You can take a Bank of India Car Loan for a minimum of Rs. 1 lakh and a minimum tenure of 7 years.
2. Used Car Loan – If you wish to buy a used car then you can choose this scheme which offers a minimum loan of Rs. 1 lakh and a minimum tenure of 5 years.
3. Loan Against Car – You can opt for this scheme if you need urgent funds where you can keep your cars as collateral with the bank where you can get Rs. 10 lakh or up to 50% of your car’s value.

New Car Loan: Pre-owned Car Loan & Loan against Car:

Pre-owned car loans are also available from the Bank of India. With quicker approval, an Bank of India Car Loan allows you to easily buy a wide variety of certified/pre-owned vehicles.

Features of a Pre-Owned Car Loan:

• Customers who take out a Star Car Loan will borrow up to 70% of the deal value.
• Loans with a maximum term of 3 years are available.
• As applied to a new car loan, the loan balance available could be smaller. As a result, EMIs shall be less on a monthly basis.
• The repayment period is long.
• The loan application process is straightforward and can be done entirely online.
• As compared to a new vehicle, the insurance premiums and depreciation rates are lower.
• Just the bare minimum of documents must be requested.

As compared to this a loan against a car is when individual pledges his vehicle for the purpose of quick funds like in case of a medical emergency, etc. 

Bank of India Car Loan Pre Calculated EMI

How to Apply for a Bank of India Car Loan?

1. Visit Dialabank and fill a form.
2. Wait for a call from our Relationship Manager who will guide you throughout the process.
3. You can compare different offers from banks and choose the one which suits your needs.
4. Thus, easily apply for a Car Loan through Dialabank and enjoy the best offers.

Tips to decide the right amount of EMI

• Ascertain the amount you need to borrow: It is important that before approaching the Bank of India for a loan, you inform them about the amount of loan you need to borrow. Limit your Bank of India loan amount after accounting for your own available funds.
• Review your current obligations: Before taking a Bank of India loan, it is advisable to check your expenses, including any EMI obligations that you have on your current loans. This assessment will help you estimate the amount of EMI you will be able to pay comfortably for the Bank of India Loan after taking into account other obligations.
• Calculate your Bank of India car loan eligibility: Your Bank of India eligibility is an assessment of your repayment capacity based on your monthly income. Bank of India provides an LTV up to 100 % of the ex-showroom price and expects the borrower to fund the remaining value of the property with their own money.
• Multiplier-based loan amount eligibility: Bank of India also calculates your eligibility by applying a multiplier to your net take-home salary. This is the simplest method for calculating Your Bank of India loan eligibility.
• FOIR based loan amount eligibility: Bank of India will also estimate your Fixed Income to Obligations Ratio (FOIR) to find out the maximum EMI you can service based on your current income and other monthly expenses. Bank of India applies a certain ratio to your income to estimate your monthly expenses and then adds your other EMI obligations in Bank of India or other banks to calculate your fixed obligations.

The Car Loan EMI – EMI Changes in Case of Prepayment

In case you prepay your vehicle loan, a small penalty is issued. Prepayment in Bank of India is 5% from 13-24 months, 3% after 24 months. When you prepay, the outstanding balance on your vehicle loan reduces. Bank of India gives you two options:

• Reduce your loan tenure and keep EMI on your car loan unchanged
• Reduce the amount of EMI and keep your loan tenure the same

How to Calculate EMI on Bank of India Car Loan

Before you avail of a car loan from the Bank of India, you may want to know how much amount you will be paying every month. This is simply known as EMIs or equated monthly installments and it offers an easy way to repay your car loan. By calculating the EMI, you will be able to budget your monthly expenses better.

You can calculate the EMI for your car loan by using the below-given formula:

E = P*r*[(1+r) ^n/((1+r) ^n-1)]

In the above formula, E is the EMI, P the principal amount, r the interest rate, and n the number of years or tenure of the loan.

You can also calculate the EMI by using the EMI Calculator tool wherein you just need to enter the loan amount, interest rate, repayment tenure, processing fee, etc. The tool will calculate the EMI and display it to you.

Bank of India Car Loan for Top Selling Cars

Bank of India Car Loan Customer Care – Toll-Free Number

Bank of India is famous for its customer relations management, as a result, they provide special Car Loan customer care service contact numbers to ensure convenience for the customer:

1800-200-3344  

Customer does not need to look up customer care number every time, they can just get one contact number for all their financial needs with India’s First Financial Helpline with Us.

Dialabank: 9878981166

Other Available Products from Bank of India

Compare Bank of India Car Loan With Other Banks In India

FAQs for Bank of India Car Loan

✅ What is a Bank of India Car loan?

Car loan refers to the various financial products which allow someone to acquire a car, including car finances and leases.

✅ How can I get a Car Loan from the Bank of India?

There are two main ways in which one can avail of a car loan from the Bank of India. One is through an online application and the other is through the in-branch application. The existing customers could also be eligible for pre-approved car loans based on terms and conditions.

✅ How does the Bank of India Car loan work?

Bank of India gives car loans at extremely attractive interest rates based on your eligibility and the amount you borrow as a loan and the loan period that you choose. Any salaried or self-employed borrower between the ages of 21-58 years with a decent credit score, a constant occupation, and a firm income is qualified to apply for a Yes Bank car loan.

✅ How to Check Car Loan status in Bank of India?

You can check your car loan status in the Bank of India by visiting the nearest branch or by checking the bank’s website.

✅ What is the maximum loan amount that I can avail of on a car loan from the Bank of India?

Contact the Bank for the details regarding the same.

✅ What is the loan tenure of the Bank of India Car loan?

The loan tenure of the Bank of India ranges from 1 year to 7 years.

✅ Can I get a 100% Car loan from the Bank of India? 

✅ Can you prepay your Bank of India Car Loan?

You can prepay/foreclose your Bank of India Car Loan at a charge of 5% of the outstanding principal amount.

✅ Does Bank of India Car Loan charge any Processing Fees?

Bank of India Bank charges a processing fee of Up to 0.40% Only

✅ Can I get a Bank of India Car Loan if I have a low Credit score? 

Bank of India Car Loan requires you to have a good credit score of 700 or above. However, in some cases, the loan application may be approved in case the credit score is below 700.

✅ What can you keep as Security with Bank of India Bank to get a Car Loan?

You do not need any other security other than the car itself to get a Bank of India Car Loan.

✅ What is the Bank of India Car loan closure procedure?

• Just go to the bank with the documents required for a car loan.
• Write a letter for pre-closure of the Bank of India Car loan account.
• Pay the pre-closure charges as per the Bank of India Car loan.

✅ What are the Bank of India Car loan preclosure charges?

Bank of India Car loan preclosure charges are Nil.

✅ What is the Bank of India Car loan maximum tenure?

The Bank of India Car loan’s maximum tenure is 7 years.

✅ What is the Bank of India Car loan minimum tenure?

The Bank of India Car loan minimum tenure is 1 year.