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Central Bank of India is a public sector bank in India. It’s one of the oldest banks in our country and has its headquarters in Mumbai. The bank has its presence across all the states and union territories in India and has its reach in even the remotest parts of the country. The bank has many products and services that are offered to its national and international customers and catered according to their needs and requirements.

The loan products offered by the Central Bank of India include car loans(vehicle loans). These loans are among one of the most popular loan products available in the market and are highly favoured by borrowers. Given below are the details of the car loan offered by the Central Bank of India and the interest rates levied thereon.

Overview of Central Bank of India Car Loan

Central Bank Of India Car Loan Interest Rates

The car loan or the vehicle loans offered by the Central Bank of India are known as ‘Cent Vehicle’. These loans are provided to individual borrowers for the purchase of two-wheelers or four-wheelers for their personal use. Cent Vehicle can also be availed for the purchase of used cars for personal use. The guidelines of the bank specifically prohibit the borrowers to avail these loans for any other purpose other than personal use. These prohibited purposes include purchasing vehicles for the purpose of hiring or ferrying passengers.

Factors affecting the Rate of Interest on Car Loans from Central Bank of India

There are various factors that affect the rate of interest that is charged for the car loans of the Central Bank of India. These factors range from the type of loan that is sanctioned to the credit profile of the borrower. Some of such factors are highlighted hereunder.

Type of Vehicle

The rate of interest depends hugely on the type of vehicle that is to be purchased from the loan. The rate of interest is usually lesser in case of two wheelers as compared to four wheeler loans.

Tenure of Loan

The tenure of loans is another important factor determining the rate of interest on a car loan. The general rule of thumb is that the longer the tenure, the higher the rate of interest and vice-versa. A longer tenure increases the risk of the lender and the shorter tenure reduces such risk.

Credit Profile of the Applicant

The credit profile of the applicant relates to the credit rating of the applicant as well as their repayment capacity. A borrower with a good credit rating is considered to be a lower risk and has a lower rate of interest as compared to a borrower having a lower credit rating.

Income Eligibility

The income eligibility of the person is another important factor in determining the rate of interest. The income eligibility determines the repayment capacity of the borrower. A borrower with a sound repayment capacity will have a reduced rate of interest as the borrower will be a lower risk for repaying the loan.

Margin Money

Margin money is the mandatory requirement to be provided by the eligible borrowers as part of the Cent Vehicle Loans. Margin money is to be provided based on the amount of loan sanctioned. A borrower can pay a higher rate of margin money than the minimum amount to be paid. If the borrower pays a higher amount of margin money, the rate of interest will be lower as the risk of the lender reduces.


The inflation of the country also influences the rate of interest i.e. the floating rate of interest. With an increase in the rate of inflation, the floating rate of interest also increases and vice versa. The fixed rate of interest is not affected by any fluctuation in inflation rate. However, such fluctuation does result in the rate of interest being more expensive or more competitive.

Type of Interest

Central Bank of India offers loans on fixed rate of interest or floating rate of interest. The type of interest directly influences the rate of interest charged on any loan.

Eligibility for Central Bank of India Car Loan

The Bank has set eligibility criteria for the car loans offered by the bank. These criteria are based on the financial status and the income background of the applicant.

The details of the same are mentioned below.

Category of persons

The various categories of persons that are eligible to apply for a Car loan of the Central Bank of India are,

  • Any of the following persons,
    • Permanent employees of any organization
    • Self-Employed Persons
    • Independent Entrepreneurs
  • Farmers that are engaged in production related activities or allied activities. (irrespective of their land holding)
  • Non-Residents

Income Requirement

The bank has also set minimum income requirements for the persons to be eligible for the car loans of this Bank. The minimum income requirement varies depending on the type of vehicle as well as the employment status of the applicant. The details of the same are tabled below.

Category of Persons

Minimum per annum Salary for Four Wheeler Loans

Minimum per annum Salary for Two Wheeler Loans

Salaried Person

Rs. 2,40,000

Rs. 1,20,000

Non-Salaried Person

Rs. 2,40,000

Rs. 1,20,000

Documents Required for Central Bank of India Car Loans

Applicants are required to submit certain documents along with the application form in order to complete the application for car loan. These documents are in the nature of basic KYC documents that certify the identity and the address of the applicant. Along with these documents, the applicant also has to provide documents relating to the income eligibility of the applicant.

The details of the documents to be submitted by the applicant are mentioned below.

Identity Proof

Applicant can submit any of the following documents as an identity proof in this regard

Address Proof

Any of the following documents can be considered as an address proof for the purpose of applying a loan

  • Aadhaar Card
  • Passport
  • Latest Utility Bills
  • Leave and License Agreement
  • Rental Agreement
  • Title Deed of the Residence

Bank Statement

The applicant will also have to submit their bank statement as part of the documentation process.

Income Proof

The documents relating to the income proof of the applicant are varied in case of a salaried person or a self employed person. Following are the required documents in each case.

Salaried Employees

  • 6 months pay slip
  • 2 years Form 16
  • 6 months bank statement showing salary credit and any EMI debit

Self-Employed Persons

  • Business proof (VAT/ Service Tax Registration/GST Registration)
  • Incorporation Certificate (for companies)
  • Proof of Business Existence 
  • Business Address Proof
  • Business Profile
  • Audited Financial Statements (Profit and Loss Account and Balance Sheets certified by CA)
  • Copy of Partnership Deed

Passport Size Photographs

The applicant also needs to provide their recent photographs as part of the documentation process.

Duly filled Application Form

Features of Cent Vehicle Loans

The car loans from the Central Bank of India have many attractive features that make it a very lucrative and favoured option among the borrowers. These features are detailed below.

Quantum of Loan

The amount of finance that can be available to the borrowers depends on the type of vehicles. The maximum amount of loan that can be availed under the Cent Vehicle Loan Scheme is tabled below.

Type of Vehicles

Amount of Loan

Two Wheeler

Rs. 10,00,000

Four Wheeler

Rs. 75,00,000

The loan under Cent Vehicle is granted based on the Road Price of the vehicle. This road price is inclusive of

  • Cost of Vehicle
  • Registration Charges
  • Insurance
  • Road Tax

Rate of Interest

The rate of Interest levied on the car loans of the Central Bank of India is very competitive and is among the lowest interest rates in the market. It is based on the risk assessment of the borrower. The current interest on car loan of this Bank is,

Type of Risk

Rate of Interest

Low risk


Medium Risk



The tenure of the loans provided under the Cent Vehicle loan scheme of the bank is based on the type of vehicle for which loan is borrowed.

The details of the same are,

Type of Vehicles

Tenure (in years)

Two Wheeler

5 (60 months)

Four Wheeler

7 (84 months)


The borrowers have to provide a percentage of the cost of the vehicle as margin money against the loan sanctioned. The margin money to be provided by the borrower depends on the amount of loan sanctioned.

Amount of Loan

Margin Money

Up to Rs. 20,00,000

Minimum 10%

Above Rs. 20,00,000

Minimum 20%


The vehicle purchased out of the loan provided is the primary security against the loan given. The bank has a hypothecation charge on such vehicles and such charge has to be registered with the Regional Transport Office Authorities.

FAQs – Central bank of India – Car Loans Interest Rates

1. What are the current rates of interest levied on Cent vehicle loans?

The current rates of interest that are charged on Cent vehicle Loans start from 7.25% in case of applicants with a strong credit profile and start from 7.45% in case of medium risk applicants.

2. What are the current rates of interest charged by other lenders for car loans?

The current rates of interest that are charged by other lenders in the market are tabled below.


Interest rate per annum

Axis Bank

8.75% - 11.00%

Bank of Baroda

7.25% onwards

Bank of Maharashtra

7.55% onwards

Canara Bank

7.30% onwards

Central Bank of India

7.25% onwards

Corporation Bank

8.50% onwards


8.80% - 10%


7.90% onwards


7.50% - 8.10%

Kotak Mahindra

6.50% - 20%

Union Bank of India

7.40% - 10.50%

Punjab National Bank

7.55% onwards

3. Can an applicant use the interest calculator to get an estimate of the EMI to be paid?

Yes. The applicant can use the interest calculator or the EMI calculator to get an estimate of the EMI amount that has to be paid each month. This estimate can also give a fair idea of the interest expense that has to be borne by the borrower.

4. What is the tenure of loans offered under Cent Vehicle loans of Central Bank of India?

The tenure of loans offered under the Cent Vehicle loans of the Central Bank of India are 5 years or 60 months in case of two wheelers and 7 years or 84 months in case of four wheelers.

5. Can an NRI apply for the Cent Vehicle loans of the Bank?

Yes. An NRI is eligible to apply for the Cent Vehicle loan of the Bank.

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