FAQs on Vehicle Loans

1. Who all are eligible for vehicle loan in India?

Individuals - in employment, business, self-employed professionals, both Resident and Nonresident Indians (NRI/PIO). Co-applicant can be spouse, son & Daughter, Father & mother.

Firms, Companies, trust, society, NGO, who are in the operation since last two years. Finance can be granted irrespective of account relationship with our Bank. Click here to apply online

2. What type of vehicles can be purchased with a vehicle loan in India? 

New two wheelers (including electric) and four wheelers (including electric) and old four wheelers (excluding non-electric) can be financed to Purchase Best Vehicle of your choice under vehicle loans.

3. What is the minimum down payment to be made for availing vehicle loan? 

New Car - 10% on road price (Including Electric Vehicle)

Old Car - 25% on road price

Two-wheeler - 10% on road price (Including Electric Vehicle)

If Vehicle loan is granted against deposit, no margin is required.

4. Is there any age & income criteria for availing vehicle loan?

Min age: Age 18 years, Max age: 70 years subject to loan should be repaid before the borrower in whose name the vehicle is registered attains the age of 75 years.

Income criteria for salaried class- must be in confirmed service. Last three months' salary slip required for availing vehicle loans.

Income criteria for self-employed/businessmen- income tax return for last two years required for processing vehicle loans.

5. Can I Refinance my vehicle?

No, refinance facility is not available. Loan for already purchased Vehicle is not available.

6. Whether Old vehicles can be purchased by availing vehicle loan?

Old two wheelers and old electric four wheelers cannot be purchased by availing vehicle loan. However, old four wheelers can be financed under vehicle loan scheme.

7. What is the repayment tenure for vehicle loan in India?

Repayment for new car-84 months

Repayment for Old car - 84 EMI (age of the car should not go beyond 8 years at the time of closure). Used cars should not be more than 5 years old.

Repayment for new two-wheeler - 72 months

(Click here to check Vehicle Loan EMI calculator)

8. What is the maximum quantum of finance in vehicle loan scheme?

90% of on road price of the vehicle for new cars and new two wheelers

75% of the market value of the vehicle without any ceiling for old four wheelers.

9. Whether guarantor is mandatory for availing vehicle loans?

Individuals:

No, guarantor is not mandatory for vehicle loans granted to resident individuals. However, guarantor of a resident Indian is mandatory for loans granted to NRI.

Non-Individuals.

Guarantee of Partners, Directors will be obtained.

10. Whether vehicle loan can be pre-paid?

Yes, it can be prepaid.

11. What is the interest rate of vehicle loan?

IOB offers one of the best and lowest interest for Vehicle loans in India. Interest rate for Car loans starts RLLR-0.50% i.e @ 8.85% presently (Refer Interest rate page for more information) and is subject to rating of the borrower. Interest rate for two-wheeler loans is 11% (RLLR+1.65%) presently.

12. How to apply for a vehicle loan?

Vehicle loan can be applied through online by visiting our website Iob.in (Vehicle Loan Apply Online Here) or the customer may visit his/her nearest IOB branch.

13. Whether any security is mandatory for availing Vehicle loan?

No collateral security is required to avail a vehicle loan. The vehicle purchased out of the loan is considered as a prime security for the bank.