There are certain considerations to make, such as whether to buy a new or used vehicle, as interest rates differ between the two. We’ll look at all aspects of Bank of India car loans in this article.
INTEREST RATE FOR CAR LOAN
To begin, it’s critical to comprehend the different costs associated with a car loan, both in terms of the bank’s funding and your personal contribution (down payment). The Bank of India offers various interest rates for various categories, starting at 9.35 per cent.
|Bank of India||New Car Loan||Used Car 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 CAR LOAN INTEREST RATES
3 basic criteria on which the loan interest rate would largely depend are:
- Loan amount: The amount of your car 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, the 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 car loans. Taking out a car 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 CAR LOAN
Aside from the interest rates, car loans also have processing fees, foreclosure fees, registration fees, and other fees that may be applicable. Let’s discuss some changes in detail:
- Processing Fee: Bank of India charges 1% of the loan amount as a processing fee.
- Prepayment Charges: If you want to foreclose on your car 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 CAR LOAN
You can apply for a Bank of India car 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 at the bank, they will gather your papers and begin the loan process, which will include checking your CIBIL score, the property’s value, technical and legal inspections, and eligibility calculations. Based on the appraisal results, the bank will make a decision on your loan.