Are you dreaming of your car? If yes IOB Vehicle Loans will take you on the perfect ride. Owning a car is the dream of the majority of the people, but surely not all of us can continue it. The reason is the lack of finance or inadequate budget planning. Cost-cutting is surely a thing that can help you in achieving your dreams. But is it alone being quite enough to go? Surely not. One needs to take the help of some bank or financial institute to fulfill their dream of a car. Indian Overseas Bank provides users the facility of getting secure and low-interest rates in the market. Trust and reliability are the two wonderful factors that you will enjoy at IOB Vehicle loans. If you have some queries in your mind the article will serve as a great guide for you.
Eligibility Criteria for Indian Overseas Bank Vehicle Loan
The parameters for salaried professionals and self-employed changes a little bit. If you are looking forward to having IOB vehicle loan you need to pass on the eligibility criteria of:
For salaried professionals
- He/She needed to be in the age group between 21 to 58
- His/Her income should not be less than that of 1,00,000 per annum
- He/She needed to be a particular employer for at least one year and should also need to have an overall experience of two years
- He/She needed to be in the age group between 21 to 65
- He/She needed to have a minimum net profit of Rs. 60,000 for standard cars and for premium and mid-sized cars it should be in between 1,00,000 per annum
- He/She needed to be in the business for about three years.
Documentation required for IOB Vehicle Loan
Be prepared with the following documents if you are seeking a vehicle loan from Indian Overseas Bank. The documents being mentioned here are valid for both salaried and self-employed professionals.
- Duly filled and signed application form
- Income proof
- IT returns or assessment order
- Address proof such as PAN card, Voter ID card, Passport, Ration card or Driving license, etc.
- Age proof
- Resident proof
- Two passports sized photographs of the applicant
Factors affecting IOB Vehicle Loan
The interest rates of the IOB Vehicle loan usually get changed from time to time. If you are willing to know what they are, here makes a quick look at these:
- The amount you used as a down payment is one of the basic factors that affect the amount of IOB vehicle loan as well. Higher will be the down payment lower will be the interest rates you will get here.
- The amount of the car loan also depends upon the condition of the car as well. The interest rates will be lower to the new cars as they would have considerably less risk. Whereas the interest rates will be higher on pre-owned cars.
- A credit score is a self-explanatory factor for the IOB vehicle loan. It usually reflects your repayment habits and hence ultimately affects your IOB vehicle loan as well.
- The loan tenure of the car loan also affects the interest rates of Indian Overseas Bank. Shorter will be the period of car loan you are looking for lower will be the interest rates and vice versa.
- The ration of the individual expenses and the gross income of the loan seeker also puts on a greater impact on the IOB vehicle loan.
- Employment status and tenure of the car loan also puts on an impact on the IOB vehicle loan.
- The previous dealing of the bank can also affect the rates of Indian Overseas Bank a lot.
Features of IOB Vehicle Loan
Indian Overseas Bank is well known for providing effective and faster vehicle loans on low-interest rates. The car loan being provided by IOB is also known as the Pushpaka car loan scheme. It is a wonderful platform where one can easily enjoy several repayment options such as easy payments and other benefits. If you are willing to know in deep about IOB vehicle loan, here are the top most features of it
- One can easily get car loan for about 90% of the ex-showroom price and can also get a minimum loan for Rs. 1 Lakh also.
- The maximum repayment tenure for the IOB vehicle loan is about 7 years. It means that you will have maximum time to own a car completely.
- Processing fees for Rs. 2.5 lakh is about Rs. 2825 and Rs. 3850 for a loan of about Rs. 4 Lakh and that is quite low as comparison others in the market.
- IOB does not add any foreclosure charges for the IOB car loan.
- The late payment penalty for the IOB vehicle loan is only about 2% per month.
Can I get an IOB vehicle loan on two-wheelers also?
Yes. IOB provides the facility of getting loans on all kinds of vehicles. One can easily get an IOB vehicle loan on two-wheelers as well unless it is a newer one.
Who are applicable for an IOB vehicle loan?
IOB offers vehicle loans for both Indian as well as Non-Indian residents as well. You just need to be eligible as per your employment status whether you are self-employed or own a business.
Are the processing charges for IOB vehicle loan changes as per the location (Rural or Urban)?
Yes. The total processing charges for both two-wheelers and four-wheelers changes as per rural and urban areas. Rural areas are usually charged with low processing costs whereas the cost for urban areas is usually higher.
What is the interest rate structure for the IOB vehicle loan?
IOB usually follows the government guideline and possess vehicle loans accordingly.