There are some decisions to be made, such as whether to purchase a new or used auto, because interest rates vary. In this article, we’ll look at all aspects of Bank of India auto loans.
INTEREST RATE FOR AUTO LOAN
To begin, you must understand the various costs associated with a auto loan, both in terms of the bank’s funding and your personal contribution (down payment). The Bank of India offers a range of interest rates, beginning at 9.35 percent, for different categories.
|Bank of India||New Auto Loan||Used Auto Loan|
|Loan Tenure||Upto Seven years.||Upto three years.|
|Lowest EMI||Rs. 1,627 per lakh.||Rs. 3,196 per lakh.|
|Loan Amount||Up to 85% of on road price.||Up to 70% of vehicle’s market value.|
You should be certain that your lender (Bank) offers auto-adjusted interest rate benefits that extend into the future. That is why you need a reputable lending institution with a dedicated and experienced staff to assist you throughout the process.
BANK OF INDIA PARAMETERS TO DECIDE AUTO LOAN INTEREST RATES
3 basic criteria on which the loan interest rate would largely depend are:
- Loan amount: The amount of your auto loan will determine the interest rate you will pay. The lower the interest rate, the larger the loan amount.
- Your Salary: higher the salary amount, lower would be the interest rate.
- Type of loan opted for: Account holders are now getting a good deal! They would get a lower interest rate on auto loans. Taking out a auto loan is usually beneficial because it allows you to receive tax benefits. However, you should consult a CA or an income tax advisor to determine the benefits and drawbacks of your particular situation.
PENALTIES/OTHER CHARGES FOR AUTO LOAN
Aside from the interest rates, auto loans also have processing fees, foreclosure fees, registration fees, and other fees that may be applicable. Let’s discuss some charges in detail:
- Processing Fee: Bank of India charges 1% of loan amount as processing fee.
- Prepayment Charges: If you want to foreclose on your auto loan or transfer it to another bank, you must send an application to the Bank of India and follow the RBI rules.
PROCESS OF APPLYING FOR AUTO LOAN
You can apply for a Bank of India auto loan by contacting the bank or filling out an online application. When you get a loan through an online marketplace, you have a better chance of having the best loan rates, lowest processing fees, and special offers in the form of cash backs. When you arrive atYou can apply for a Bank of India auto loan by contacting the bank or filling out an online application.an.