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Oriental Bank of Commerce Car Loan Eligibility

Getting a car has always been a challenge - the main issue being the availability of funds to do so. You can now say hello to your personal car with Oriental Bank of Commerce car loan. Oriental Bank of Commerce (OBC) is an Indian public sector bank that provides car loans once you meet the eligibility criteria. The car loans can only be availed for personal use and not for commercial purposes e.g. taxis. You can either avail the loan for the purchase of a new car or a pre-owned car.

Making Oriental Bank of Commerce your choice for a car loan comes with many benefits. Oriental Bank of Commerce has an alliance with car manufacturers and dealers pan India. You can choose any make, brand, size, or colour of the car if you can meet the bank's terms. The car loan covers a one-time road tax, showroom price and the cars insurance costs. Oriental Bank of Commerce approves a maximum loan of 85% of the total cost for new car and 70% for pre-owned cars.

Oriental Bank of Commerce Car Loan Eligibility Criteria

Oriental Bank Of Commerce Car Loan Eligibility

Before applying for a car loan, you should know if you meet the eligibility criteria for the loan. Checking your car loan eligibility status, helps you avoid loan denials and a waste of time.

The following can avail of Oriental Bank of Commerce car loan -

  • People in salaried employment with a minimum experience of one year.
  • Authorised and approved Companies, Firms, Corporations etc. with a minimum of two years working service
  • Highly regarded professionals like Lawyers, Surgeons, Bankers, Government officials, etc.
  • Agricultural landowners and workers.
  • People who don’t reside in India can also avail for a car loan, with the help of a partner or relative that resides in India.

Below are the eligibility requirements for self-employed and salaried people:

Self EmployedSalaried
A minimum of Rs. 20000 per monthA minimum of Rs. 20000 per month
Minimum age limit of 18 yearsMinimum age limit of 18 years
There is no maximum age limitMaximum age limit of 65 years with a loan maturity
Self-employed establishments with a minimum of 3 years in service One year work experience with the present employer.
NRIs can apply jointly with a partner or relative resident in India.NRIs can apply jointly with a partner or relative resident in India.

Documents Required for getting an Oriental Bank of Commerce Car Loan

New Car Loan Pre-owned Car Loan
Oriental Bank of Commerce required documents for new and pre-owned carsProof of Identity – Valid Identification card, Voters card, drivers licence etc. Proof of Identity – Valid Identification card, Voters card, drivers licence etc.
Proof of Age – 18 to 65 years.Proof of Age – 18 to 65 years.
Proof of Income – payment receipt or cheque slip issued by the employer Proof of Income - payment receipt or cheque slip issued by the employer
Passport size photograph of applicants, guarantor and co-applicantPassport size photograph of applicants, guarantor and co-applicant
Proof of residence Proof of residence
Proof of agreement of the car sale/purchase from the buyer and seller
The cars’ documents e.g. Registration certificate or purchase receipt.
Transfer form, prescribed by the seller of the car for onward submission to RTO
Any other documents/information required by the bank
People with Salaried Employment Evidence of salary payment from the employer will be required or an Income Tax return
Agricultural sector

Evidence of Income, showing:

  • Land Possession
  • Cropping pattern
  • Any other information required by the Bank
Other IndividualsAuthorized sales permit from the car sales administrative
A Bank account statement and 3 years income tax return
Guarantor’s proof of income or a partner/relative’s proof of income.
Any other information required by the Bank

Features of Oriental Bank of Commerce Car Loan

New Car LoanPre-owned Car Loan
Collateral Security A personal guarantee will have to be made by the borrower which would be approved by Oriental Bank of Commerce if the monthly gross income is Rs. 40000/-A personal guarantee acceptable by the Bank
Four-WheeledRs. 100.00 lakhs is the maximum loan amount for a four-wheeled vehicle Rs. 25.00 is the maximum loan for a four-wheeled vehicle
Loan Margin15% of On-road price20% by TVS and 30% non-TVS
Loan Amount Assessment

Professionals, Salaried employees and Pensioners:

The Maximum amount is equal to 30 months’ gross pension/salary on condition that the net take-home income salary is 30%-40% slab according to Annual Gross Income.

Business Organizations:

Generation of cash to satisfy the repayment of the proposed loan.

Repayment period and Age of Cars

Oriental Bank of Commerce repayment period is 84 EMI’s.

Maximum age for loan maturity is:

  • Salaried workers (Pension approved) – 65 years with a regular source of income.
  • Salaried workers (not Pension approved) – 60 years
  • Business organisations – no maximum age limit
Oriental Bank of Commerce processing fees for car loans

1.00% of loan amount subject to a minimum of 500/- and maximum of 7000/- car loan application form.

Other charges:

Prepayment penalty

Documentation charges

Upfront fee - NIL

1.00% of loan amount subject to a minimum of 500/- and maximum of 7000/- car loan application form.

Oriental Bank of Commerce Car Loan Interest Rate

FeaturesNew Car LoanPre-owned Car Loan
Loan period7 years3 years
Loan amount85% of on-road price70% 0f market value
Lowest EMIRs. 1,611 per lakhRs. 3,183 per lakh
Processing fee0.50% min Rs. 5000.50% min Rs. 500
Prepayment chargesNoneNone

*New car loan interest rate approved by Oriental Bank of Commerce is 9.05%, while Pre-owned cars are 10.90%.

Oriental Bank of Commerce Car Loan Eligibility Calculator

The following formulae are applied for computation of loan EMI -

E = P*r [(1=r) ^n/ (1=r) ^n-1)]

E represents the monthly EMI

P represents the Principal amount

n represents the numbers of years

You can also use the car loan eligibility / EMI calculator on the bank website for more accurate computations. Bear in mind, that terms are subject to change at any time, therefore, it would be advisable to back up your computation with a consultation with a bank official.

Oriental Bank of Commerce Car Loan Eligibility FAQs

1. Does Oriental Bank of Commerce car loan scheme cover car-purchase charges?

Yes, Oriental Bank of Commerce covers road tax, showroom price, registration fees and insurance for the first year.

2. Can a 16-year-old apply for an Oriental Bank of Commerce car loan?

No, the minimum age required for Oriental Bank of Commerce car loan is 18 years the maximum age at maturity should be 65 years.

3. What is Oriental Bank of Commerce maximum tenure for a car loan?

The maximum tenure is 7 years.

4. What collateral is required to get an Oriental Bank of Commerce car loan?

The car itself acts as collateral. Besides that, the applicant should have a minimum gross monthly income of INR 40,000 or should provide a personal guarantee or a guarantor.

5. What is the loan margin for pre-owned cars?

Pre-owned car margins are 20% by TVS and 30% non-TVS

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