Bank of India Car Loan

Bank of India Car Loan Key Features – Jan 2021

Bank of India Car Loan Interest Rate 7.35%* per annum
Min Loan Amount ₹ 100,000
Max Loan Amount
(Loan to Value)
Loan up to 85% of On Road Price
or 100% of Ex-showroom Price
Loan Tenure 1 year to 7 years
Lowest EMI / Lac ₹ 1,634
Minimum Net Monthly Income ₹ 15,000
Minimum ITR for Self Employed ₹ 300,000
Age Criteria Salaried: 21 years to 60 years
Self Employed: 21 years to 65 years
Types of Cars For All New Passenger Cars, Multi Utility Vehicles (MUVs), and Sport Utility Vehicle (SUVs).
Processing Fee Up to 0.40% Only
Foreclosure Charges Nil
Basic Documentation ID Proof, Address Proof, Salary Slip, Bank Statement, and Car Quotation

About Bank of India Car Loan

Bank of India Bank provides Instant Car Loan at 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

Bank of India Car Loan Eligibility

Salaried Individual
  • Age – 21-60 years of age
  • Net Monthly Income – should be a minimum of ₹ 15000
  • Employment Duration – Minimum 1 year
  • Income Eligibility – Depends on Form 16 and Salary Slip
Self-Employed Individuals
  • Age – 21-65 years of age
  • Minimum ITR  – Rs. 4 lakh, Rs. 18 lakhs (for selected car models)
  • Employment Duration – Minimum 3 years
  • Income Eligibility – Depends on the latest Income Tax Returns
Self-Employed Non-Individuals (Company/Partnership)
  • Minimum ITR  – Rs. 4 lakh, Rs. 18 lakhs (for selected car models)
  • Employment Duration – Minimum 3 years
  • The applicant has to present IT returns and audited financials of 2 years with Calculated Income.
Priority Customers
  • Applicant should have a vintage of at least 6 months
  • Average Quarterly Balance – Minimum Rs.1 lakh for last 2 quarters
  • Maximum Loan Amount – 3 X Average Quarterly Balance of Last 2 quarters

Bank of India Car Loan Interest Rates and Charges

Charges New Car Loan Used Car Loan
Interest Rate 7.35% p.a. to 11.30% p.a. 14.80% p.a. to 16.80% p.a.
Processing fee Up to 0.40% Only Up to 0.40%
Issuance of Duplicate Repayment Schedule Charges Rs.500 per instance Rs.500 per instance
Foreclosure Charges 5% of the principal outstanding 5% of the principal outstanding
Penal Interest 2% per month 2% per month
Part Payment charges 5% of the paid amount 5% of the paid amount
Cheque/Instrument Swap Charge Rs.500 per instance Rs.500 per instance
Documentation Charge Rs.500 per instance Rs.500 per instance
Issuance of Duplicate No Dues Certificate Charges Rs.500 per instance Rs.500 per instance
Registration Certification Collection Charge Rs.200 per instance Rs.200 per instance
Cheque Bounce/Instrument Return Charges Rs.500 per instance Rs.500 per instance
Issuance of Duplicate Statement Charges Rs.500 per instance Rs.500 per instance
Loan Cancellation/Re-booking Charges Rs.2,500 per instance Rs.2,500 per instance
Issuance of Credit Report Rs.50 per instance Rs.50 per instance

 

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 that you will be paying each month will be higher. This will be an indication of your higher repayment capacity which will build a sense of confidence in you. So, if you wish to boost your Eligibility for Car Loan, you can opt for a shorter repayment tenure.
  • Keep your credit score in check – If you wish to increase your eligibility 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. Checking your credit score regularly will allow you to take corrective measures to improve it if your score is low or if it gives you the confidence to approach the bank if it is high.
  • Maintain a low debt-to-income ratio – A low debt-to-income ratio means that you have a good balance between your earnings and your spendings. Before banks decide 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. To enhance your eligibility for a car loan, you should ensure that you maintain a low debt-to-income ratio.
  • 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. A lower loan amount means that the loan will be repaid faster. Therefore, the chances of you being eligible for a loan are higher.

Factors Affecting Bank of India Car Loan Eligibility

The eligibility criteria for car loan for 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 for a car loan from HDFC will be higher if you apply for a lower loan amount as if the loan amount is lower, the bank knows that the loan will be paid off quicker. Hence, they will be more confident to give you the loan.
  • Repayment tenure – Choosing a longer repayment tenure can decrease your eligibility for a car loan. It might give an impression to the bank that you do not possess the ability to pay the loan. This is because longer repayment tenure results in lower EMIs and the lender will think that you cannot afford to pay higher EMIs. Therefore, the bank may be reluctant to lend to you.
  • Credit score – This is an important factor that every bank, including the Bank of India, considers when finding out your Eligibility For a Car Loan. A credit score of 750 and above is considered to be a healthy credit score by most lenders. If you have a healthy credit score, banks will be happy to offer you a car loan and your eligibility will be much higher.
  • Relationship with the bank – As stated earlier, Bank of India offers Instant Car Loan to their existing customers through the ZipDrive feature which allows Bank of India customers to can avail themselves of loans instantly, at their convenience, with very few documents required. This indicates that your relationship with the bank is an important factor while determining your eligibility.

Bank of India Car Loan Documents Required

Salaried Individual

Category Documents Required
Identity Proof

(Any 1)

Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Address Proof

(Any 1)

Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Date of Birth Proof

(Any 1)

Birth Certificate
Passport
Driving Licence
PAN
Signature Proof

(Any 1)

Passport
Bankers Verification
PAN
Income Proof Latest Form 16 and Salary Slips
Bank Statement Bank statement of last 3 months
Employment Continuity Proof Work Experience Certificate
ITR of Form 16
Salary Slip with Joining Date
Appointment Letter
Letter of Relieving

Self-Employed Individuals

Category Documents Required
Identity Proof (Any 1) Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Address Proof (Any 1) Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Date of Birth Proof (Any 1) Birth Certificate
Passport
Driving Licence
PAN
Signature Proof (Any 1) Passport
Bankers Verification
PAN
Income Proof Latest Form 16 and Salary Slips
Bank Statement Bank statement of last 3 months
Employment Continuity Proof Shop & Establishment Act Certificate
Current Account Statement
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Business Proof Current Account Statement
Telephone Bill
Electricity Bill
Shop & Establishment Act Certificate
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Registered Lease Document with other utility bills

Self-Employed Non-Individuals:

1. Partnership Firms/Societies

Category Documents Required
Identity Proof (Any 1) Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Address Proof (Any 1) Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Income Proof Audited Balance Sheet
P&L Account and ITR for the previous 2 years
Bank Statement Bank statement of last 3 months
Business Continuity Proof Shop & Establishment Act Certificate
Current Account Statement
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Additional documents Authority Letter/PAN cards

2. Private Limited/Limited Companies

Category Documents Required
Identity Proof Copy of Latest MOA
Copy of Incorporation
Copy of Latest AOA
Address Proof (Any 1)
Current Account Statement
Telephone Bill
Electricity Bill
Shop & Establishment Act Certificate
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Registered Lease Document with other utility bills
Income Proof Audited Balance Sheet
P&L Account and ITR for the previous 2 years
Bank Statement Bank statement of last 3 months
Business Continuity Proof Shop & Establishment Act Certificate
Current Account Statement
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Additional documents
List of Directors and Shareholding Partners
PAN Card
Board Resolution
Certificate of Commencement of Business for Ltd. Co.

Processing fees* (Non – refundable)

All loan providers from both the private and public sector 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 per cent of the loan sum is requested by the Bank of India. With the applicable utility fee, the maximum amount is Rs.0.

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

Calculate Your Loan EMI Here

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 a bank for a loan, you inform them about the amount of loan you need to borrow. Limit your loan amount after accounting for your own available funds. Furthermore, based on the EMI you can service, try to opt for the lowest tenure of loans as long tenure loans can result in huge interest outgo.
  • Review your current obligations: Before taking a loan, it is advisable to check your expenses, including any EMI obligations that you have on your current loans. This assessment will help you to estimate the amount of EMI which you will be able to pay comfortably after taking into account other obligations. Once you arrive at the EMI, you can also decide on the right loan tenure.
  • Calculate your Bank of India car loan eligibility: Your 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 by 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 loan eligibility used by banks. Usually, it is 2.5 to 3 times the annual salary for salaried individuals and 6 times the annual income for self-employed professionals. The multiplier depends on the bank’s internal categorization of your company that is based on its reputation, stability, size, and growth in turnover.
  • 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. The bank applies a certain ratio to your income to estimate your monthly expenses and then adds your other EMI obligations to calculate your fixed obligations. The proportion of fixed income to your calculated fixed obligations gives your FOIR. Generally, banks lend up to a maximum FOIR of 0.50. Based on the FOIR, the bank will also estimate the maximum amount of EMI you can service as a borrower. Bank of India’s assessment may be different from your own assessment. Any differences in assessment may require you to readjust your loan amount requirement. You may also consider paying back other running short-term loans to improve your eligibility.

 

Loan amount (Rs.) Processing fee Interest rate (Mean) EMI for 2 years (Rs.) EMI for 3 years (Rs.) EMI for 4 years (Rs.) EMI for 5 years (Rs.) EMI for 6 years (Rs.) EMI for 7 years (Rs.)
10 Lakh 2% 9.35% 45,845 31,963 25,052 20,929 18,200 16,267
15 Lakh 2% 9.35% 68,768 47,944 37,577 31,393 27,300 24,401
20 Lakh 2% 9.35% 91,691 63,926 50,103 41,857 36,399 32,535
25 Lakh 2% 9.35% 1,14,614 79,907 62,6299 52,322 45,499 40,668
30 Lakh 2% 9.35% 1,37,536 95,899 75,155 62,786 54,599 48,802
35 Lakh 2% 9.35% 1,60,459 1,11,870 87,680 73,250 63,699 56,935
40 Lakh 2% 9.35% 1,83,382 1,27,852 1,00,206 83,715 72,799 65,069

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 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 number 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 Bank

Bank of India Bank Personal Loan Bank of India Bank Car loan Bank of India Bank Home Loan
Bank of India Bank Credit Card Bank of India Bank Two Wheeler Loan Bank of India Bank Education Loan

Compare Bank of India Car Loan With Other Banks In India

Car loan Banks Interest Rates EMI per Rs 1 lakh for 7 Years
Bank Of Baroda Car Loan 8.80% – 10.55% Rs. 1,599 – Rs. 1,689
Canara Bank Car Loan 8.70% – 9.35% Rs. 1,594 – Rs. 1,627
Corporation Bank Car Loan 8.75% – 9.50% Rs. 1,596 – Rs. 1,634
HDFC Bank Car Loan 8.50% – 11.25% Rs. 1,584 – Rs. 1,725
Bank of India Car Loan 8.82% – 12.75% Rs. 1,600 – Rs. 1,806
Union Bank Car Loan 8.85% – 11.85% Rs. 1,601 – Rs. 1,757
Bank of India Car Loan 8.65% – 9.70% Rs. 1,609 – Rs. 1,645

News for the Bank of India Car Loan

2020-08-03 :

Bank of India recorded a profit of Rs. 845.78 crore in the first quarter of the fiscal year 2020. Bank of India’s net profit for the quarter ended June 30, 2020, was Rs.845.78 crores, compared to Rs.3600.65 crores for the quarter ended March 31, 2020. Furthermore, the Bank posted a total income of Rs.12022.48 crores for the time ended June 30, 2020, helped by retail loans such as residential, personal, auto, two-wheeler, and gold loans, as well as company and mudra loans.

2019-08-21: 

The Bank of India and an Indian overseas bank will launch an online retail loan marketplace. Public sector banks such as Bank of India and Indian Overseas Bank are preparing to launch retail loans such as homes, car loans, and personal loans on the psbloansin59minutes platform in order to extend their retail loan market. Currently, it can only be used to approve MSME loans, but it will soon be able to issue retail loans as well. This is intended to ensure that loans are readily available and to save both the borrower and the banker time.

2017-01-09: 

The Bank of India lowers the interest rate on auto loans by 70 basis points. The Bank of India has cut the interest rate on car loans for new car buyers from 10.05 per cent to 9.35 per cent. The rate is in place as of January 7, 2017.

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? 

100% loan amount will be provided on the on-road price of the vehicle for selected models. It offers the most competitive car loan interest rates in the industry. There will be multiple repayment options available.

✅ 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.

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