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Introduction

Bank of India was a privately held bank which was nationalized in the year 1969 along with many other banks. The bank has been a pioneer bank in the country with its wide reach across the country and also abroad.

Bank of India has been a very prominent bank in the market for various types of loan products like personal loans, home loans, business loans, vehicle loans and much more. The Bank of India car loans are known as BOI Star Vehicle Loan Scheme. Among the car loans, the bank has loans for purchase of new cars as well as used cars/pre-owned cars.

Bank of India used car loan details like rate of interest, tenure, loan amount that can be availed, processing charges, etc. are mentioned here.

Eligibility Criteria for Bank of India Used Car Loan

Bank Of India Used Car Loan

Bank of India car loans can be applied by all the resident citizens of the country. The bank also allows NRIs to apply for the used car loans subject to certain conditions.

The list of eligible applicants for BOI Star Vehicle Loan Scheme is detailed below.

  • Salaried employees 
  • Professionals
  • Self-employed persons
  • Non-Resident Indians (provided such application is made jointly with a resident Indian who is a close relative of the NRI)
  • Companies
  • Partnership Firms
  • Proprietary concerns
  • Other corporate entities

The bank has laid down an age restriction for the individual applicants. This restriction states that the age of the applicant cannot exceed beyond 65 years at the time of seeking a loan.

Bank of India specifically excludes HUFs from applying for a car loan of the bank.

Also, the age of the vehicle (Used/Pre-owned Car) cannot exceed more than 3 years in order to apply a loan for purchase of such vehicle.

Documents required for BOI Star Vehicle Loan Scheme

The bank will require the basic KYC documents as part of the application process. This includes the basic identification and verification documents like

  • Identity proof of the applicant (PAN Card, Voter’s Id, Driver’s License, etc.)
  • Address proof of the applicant (Aadhaar card, Water Bill, etc.)
  • Recent passport size photographs
  • Details of the vehicle to be purchased out of the loan (Proforma Invoice, RC copy of the vehicle, Insurance copy of the vehicle, etc.)
  • Salary Slip/ IT Returns/ Assessment Order

The bank will verify all the documents submitted along with the application form. If all the documents are duly verified, the bank may sanction the loan as per its guidelines and eligibility of the applicant.

Salient features of BOI Star Vehicle Loan Scheme

The used car loans of the bank are very popular in the market owing to its competitive interest rates and high loan value.

The various features of the bank’s loan scheme are mentioned hereunder.

Tenure – 

The bank offers tenure of 36 months (3 years) maximum for repayment of used car loans taken from the bank.

Rate of interest – 

The bank has the same rate of interest on loans taken for the purchase of new cars as well as used cars. The rate of interest is classified under two categories namely, for salaried class and self-employed class and will depend on the credit score of the applicant. ‘Better the credit score lowers the interest rate’ is the basis of calculation. The interest rate is calculated to be a percentage in addition to the RBLR. The current RBLR rate with effect from 1st April 2020 is 7.25%. The rate of interest offered by the bank differs for individual and non- individual borrowers. The current rate of interest ranges approximately from 7.75% to 8.35% for all categories of applicants.

Quantum of the loan – 

The bank has a detailed condition set for the maximum amount of finance that can be provided as a car loan. The details of the same are given here.

CategoryMaximum Amount

Indian make vehicles

Rs. 50,00,000

Companies and Corporate Entities

  • Rs. 1,00,00,000 (for personal use)
  • Rs. 2,00,00,000 (for commercial use – can be a fleet of vehicles)

Non-Resident Indians

Rs. 50,00,000

The above maximum loan amount that can be sanctioned as loan further depends on individual cases based on the income profile of the applicant. Following are the details of such restrictions,

CategoryCondition

Individuals

  • 24 times of the gross monthly earnings for salaried persons/ pensioners
  • 2 times of the gross average annual income as per last 3 IT Returns for non-salaried individuals

Firms/ Companies

2 times average annual cash accrued (PAT+Depreciation) as per last 3 audited financial statements.

Type of advance – 

The bank provides an advance in the form of demand loans or term loans under the BOI Star Vehicle Loan Scheme. However, for used car loans, the bank provides an advance in the form of demand loans.

Margin – 

The bank requires a margin of a minimum of 30% of the value of the vehicle for which the loan is sought. This value is calculated to be lower of,

  • Depreciated value, or
  • Value assessed or determined by a competent Valuer, or
  • Sale consideration

Security – 

The vehicle purchased out of the loan is considered to be the primary security against the loan and is liable to be hypothecated in the event of non-payment of dues. The hypothecation charge has to be registered with the RTO. The bank further requires a third party guarantee for loans given to NRIs.

Processing fees – 

The bank charges a nominal processing fee on the loan applications. This amount is subject to the following restrictions,

  • Minimum Rs. 500
  • Maximum Rs. 10,000

The bank does not charge any processing fees for loans in the following cases,

  • Senior Citizens
  • Retired Employees of the Bank
  • Pensioners that draw a salary from the Bank

In rural areas, the processing charges on the loans is restricted to 75% of that applicable to individuals provided the loan is taken by the borrowers from rural branches or from rural areas subject to,

  • Minimum Rs. 1,500
  • Maximum Rs. 20,000

The processing charge for partnership firms or corporate applicants is double the charge that is applicable to the individual borrowers.

BOI Used Car Loan Customer Care

BOI Customer Care service can be used by the customers to resolve any query that they may have or to get information regarding any aspect of the loan (application process, documents required, current rate of interest, branch address, etc.)

The customer care service of the bank is available 24x7 throughout the year to provide any assistance to the customers or for any feedback or suggestion that they may have regarding the branches or personnel or any of the products and services of the bank. Customers can contact the bank in the following manner.

   Star House, 

   C-5, “G” Block,

   Bandra Kurla Complex

   Bandra (East)

   Mumbai – 400051

Phone – 022 - 66684444

The bank also has a virtual assistant available at the bank’s website ‘BOI Seva’. This service is available free of cost and to the customers (whether existing or not). The customers can get assistance on topics like,

FAQs: Bank of India Used Car Loan

1. What is the toll free number for the Bank of India?

The toll free number for Bank of India is 1800 103 1906 / 1800 220 229.

2. What should be the maximum age of the vehicle to get a loan for purchase of used cars?

Bank of India provides loans for purchase of used cars provided the car is not more than 3 years old.

3. Can HUFs apply for a loan to purchase a used car?

The bank specifically excludes HUFs from the list of eligible customers to apply for a used car loan.

4. What is the maximum age to apply for a used car loan?

The bank states that the applicant’s age should not be more than 65 years at the time of availing a loan.

5. Can an NRI apply for a used car loan?

The bank allows a NRI to apply for a used car loan provided such loan is co-applied with a resident citizen of the country who is a close relative of the NRI.

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