Bank of India Car Loan Interest Rates

Updated on: Jan 13th, 2022 - 4:24:03 AM

6 min read

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Bank of India offers to finance new and used cars across various applicants, i.e. resident individuals, non-resident individuals, and companies. It includes a defined structure for interest rates based on the CIBIL score for individuals. You may get 100% financing on the ex-showroom price of the car.

Here are all the details you must know regarding Bank of India Car Loans.

Types of car loan schemes of Bank of India

BOI Star Vehicle Loan Scheme

The scheme provides a financing facility to purchase new four-wheeler vehicles as well as used four-wheelers. Residents and non-resident individuals and non-individuals can get the benefit of the facility.

Interest rates of Bank of India car loans

CIBIL Score RangeInterest Rate for Salaried ApplicantsInterest Rate for Self-Employed Applicants
760 and aboveRBLR + 0.60% = 7.45%RBLR + 0.70% = 7.55%
725-759RBLR + 0.85% = 7.70%RBLR + 0.95% = 7.80%
675-724RBLR + 0.90% = 7.75%RBLR + 1.00% = 7.85%
Below 675RBLR + 1.50% = 8.35%RBLR + 1.70% = 8.55%
-1 and 0RBLR + 1.00% = 7.85%RBLR + 1.20% = 8.05%
For Non-Individual ApplicantsRBLR + 0.85% = 7.70RBLR + 0.85% = 7.70

Features and benefits of Bank of India car loans

  • Get financing for new and used cars.
  • Financing up to Rs.50 lakh for cars made in India.
  • Loan repayment tenure of up to 7 years.
  • Individuals and non-individuals can get financing.
  • Non-resident Indians can also get car financing.
  • Guarantee of resident Indian is required in the case of loans to NRIs.
  • Up to 100% financing offered on ex-showroom price.

Eligibility for Bank of India car loans

  • Profession:
    • Salaried Employees
    • Self-employed Professionals
    • Self-employed Non-Resident Indians – advance to be granted jointly with Resident Indians 
  • The age of the individual borrower should not exceed 65 years at the time of availing of the loan
  • Companies, Partnership Firms, Proprietary concerns and other types of Corporate entities
  • HUFs are not eligible
  • For used cars, the age of the vehicle must not exceed three years

Documents required for Bank of India car loans

Salaried employeeSelf-Employed
Filled up loan application formFilled up loan application form
2 Passport Size Photo2 Passport Size Photo
Identity Proof – Passport/ Driving Licence/ Voter ID/ PANIdentity Proof – Passport/ Driving License/ Voter ID/ PAN
Residential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (up to 3 months old), PassportResidential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (up to 3 months old), Passport
Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debitBusiness proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile

Bank of India car loan fees and charges

Processing Charge

New four-wheelers0.25% of the limit; Minimum of Rs.1,000 and Maximum of Rs.5,000
New four-wheelers (Rural Areas)75% of the charge applicable to individual borrowers; Minimum of Rs.1,500 and Maximum of Rs.20,000
Partnership Firms and Corporates2x the charge applicable to individuals

How to calculate EMI on Bank of India car loans

Our car loan calculator helps you figure out the monthly instalments you must pay for a specific loan amount to finance your dream car.

Frequently Asked Questions

Are any charges applicable if I wish to switch over from base rate/MCLR to RBLR?

Irrespective of the customer being an individual or a non-individual, an additional 0.10% CRP will be applied to the interest rate.

Do senior citizens get any concession on the processing charge?

Senior citizens, retired employees of the bank, and pensioners drawing pension from the bank will not be charged with car loans processing fees.

How much loan can I expect?

You can expect financing of up to 24 times the gross monthly income in salaried employees or pensioners. It can be two times the gross average annual income per the last three years’ IT returns. The loan can be up to two times the average annual cash accrual for the last three years’ audited balance sheet and P&L account for firms and companies.

Do I get a 100% loan amount on all types of vehicles?

The margin may differ based on the type of vehicle and its cost.

Amount for New CarsMargin (%)
Up to Rs.10 lakhNil Margin on ex-showroom price, excluding insurance, taxes, and registration charges
Rs.10 lakh-Rs.25 lakh15%-25% Margin on-road price, including insurance, taxes, and registration charges

For corporates, the margin will be a minimum of 25%.

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