Indian Overseas Bank
26 Mar 2007
You can apply if you are permanently employed in a…
- A government office
- A public sector undertaking
- A reputed private enterprise, or
- If you are a self-employed professional.
What do I need to apply?
If you’re a salaried individual: A take home of more than 50 per cent of the gross salary, after PF and Insurance deductions
If you’re a self-employed professional: A minimum period of three years of activity in your related field; you should be an income tax payee with a copy of the latest I.T. return/assessment orders.
What can I use the loan for?
You can use the loan to buy a new or used car.
How much can I get?
New car - You can get up to 80 per cent of the cost of the car. Used car - You can get up to 75 per cent of the market value of the car subject to a maximum of Rs 5 lakh.
What rate of interest will I have to pay?
The current rate of interest is 13.50 per cent p.a. for loans up to Rs 2 lakh and 14.50 per cent for loans above Rs 2 lakh. This is subject to change from time to time without prior intimation.
How do I repay my loan?
If you have bought…
- A new car, you can repay your loan in 60 equated monthly instalments
- A used car, you can repay your loan in 36 equated monthly instalments
Amount of EMI for a loan of Rs 1 lakh
| Period | EMI for Interest p.a. | |
| 14.50 per cent | 13.50 per cent | |
| 3 years | Rs 3,433 | Rs 3,386 |
| 5 years | Rs 2,344 | Rs 2,293 |
What security do I need to provide? You can secure your loans by hypothecating the vehicle you’ve purchased The Banks lien on your car should be marked in the R.C. book Your car should be insured for the full value with the bank clause.
How much do I have to pay for processing my loan?
If your loan is up to Rs 2 lakh you will have to pay a fee of Rs 120 in rural areas and Rs 150 in other areas. For loans above Rs 2 lakh you will have to pay a fee of Rs 120 per Rs 1 lakh in rural areas and Rs 150 per Rs 1 lakh in other areas.
What documents are required for applying?
To apply for this scheme, you will need…
- An application form
- Your salary certificate, IT return or assessment order as a proof of income
- Quotation/proforma invoice - for a new car
- Valuation certificate from two reputed auto dealers - for a used car
- If you’re a self-employed professional, businessman… you will need to produce a proof of your standing in your related field.
How can I apply?
Download the application form in MS-Word format Save it on your computer, print it out and send it to the nearest/convenient IOB branch for processing. While all efforts have been made to update the information, constituents are requested to contact the branches for latest details.
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