Indian Overseas Bank Used Car Loan

Features of Indian Overseas Bank Used Car Loans

• Indian Overseas Bank Used Car Loan is called ‘Pushpaka’. 
• Pushpaka loans are available for salaried individuals, self-employed individuals, registered firms or companies and NRIs too.
• Customers can utilize the loan to purchase pre-owned cars that are not more than 5 years old.
• The loan can be applied individually or jointly. 
• Pushpaka loans offer up to 75% of the market value of the pre-owned car. 
• Hypothecation of the vehicle to the bank serves as security for the loan. 
• The purchased vehicle should have insurance for the full declared value. 
• Very low processing fee of just 0.60%, subject to a maximum of Rs.1000
• Attractive interest rates based on RLLR (Repo Rate Linked Lending Rate). Current interest rate stands at RLLR + 2.70.

Eligibility criteria to apply for Indian Overseas Bank Used Car Loans – Pushpaka

As stated above, IOB’s Pushpaka Loans can be applied by the following people – 

• Permanent employees of a Government Office, a Public Sector Undertaking, a Reputed Private Enterprise
• Self-employed individuals & Professionals
• NRI Individuals

Income Eligibility

• Net Take Home Pay of more than 50% of the gross salary, after PF and Insurance deductions
• The total monthly income of the applicant including that of spouse and other income should not be less than Rs. 8000/- in the case of loan for purchase of car

Repayment Tenure

Customers can avail a Flexi Repayment plan. The tenure shall be fixed at a maximum of 84 months, less the age of the vehicle.

Security & Guarantee

Hypothecation of the vehicle purchased serves as security for the loan. No additional Guarantee is mandated. The Banks lien on the vehicle should be marked in the R.C. book. Vehicle should be insured for the full value with the bank clause.

Documents required to be submitted for the loan processing

• Loan application form
• Salary certificate, IT return or assessment order as a proof of income
• Valuation certificate from two reputed auto dealers - for used car purchase

How can I apply for IOB’s Pushpaka Used Car Loan?

You can apply for IOB’s Pushpaka Loans at your nearest branch of IOB Bank.

What are the factors affecting my eligibility criteria for Indian Overseas Bank Used Car Loans – Pushpaka?

There are a number of factors that impact your Indian Overseas Bank Used Car Loans – Pushpaka Eligibility. Few of the main factors are:

Credit score – Credit Rating is an important metric used in loan processing. Your credit score shows your creditworthiness. Higher credit score means higher probability of your making timely repayments. If you have a good credit score there are more chances of receiving better terms for your loan. But, if you have a poor credit score, your chances of being approved for a car loan will dwindle. You may end up with a higher interest rate and lower loan amount.

Age – You must be at least 21 years old to become eligible for an IOB’s Pushpaka Used Car Loan. You also need to make sure that you pay off all of your loan by the time you retire. Therefore, the more years of working years you have left, the greater the chances of obtaining the loan would be. So, banks prefer applicants with a lower age compared to once nearing their retirement.

Income level– Income is an important parameter to approve your loan. Higher the income, easier your loan approval! One has to remember that they may not get a loan for the full value of the vehicle mentioned in the application form. The amount of the loan to be approved depends on one’s income. Banks look into your income to debt ratio to determine your repayment capacity. If your salary is less than the requirement for the qualifying benefit, you might not qualify for the full amount of the loan.

Existing Liabilities – Your eligibility is affected by current debts & liabilities. Your debt-to-income ratio is a significant factor in determining your eligibility while processing your loan. When you have another loan, like a home loan or an educational loan, your chances of being approved for a car loan would be less.

How to improve your eligibility for Indian Overseas Bank Used Car Loans – Pushpaka?

If you feel that your application might get rejected for the loan, you can try these simple steps to improve your chances:

Improve your Credit Score – Credit Score plays an important role in your loan application. Increasing your credit score is a very important step towards bettering your chances of getting approved for car loans. You can boost your credit score in simple ways; you can pay off your unpaid bills on credit cards, you can clear any debts that have been outstanding for quite some time, make sure that your credit score is accurate, if not, you can get it corrected from the relevant credit bureau. Closing a card can also have an effect on your credit limit, and doing so can be risky. To earn a good credit score, you need to keep your unpaid balance to the minimum to have a healthy revolving credit.

Reduce your existing liabilities: To boost the chances of securing a loan, the first step is to pay off existing debt. You need to take debt management seriously, and clear your past liabilities. This will raise your debt-to-income ratio, and increase your car loan eligibility.

Add Co-applicants – Adding another earning family member as a co-applicant gives a better chance in increasing the chances of being approved for the car loan. As your co-applicant, you can add your spouse, father, mother or siblings, even if the car is not purchased on their name. Adding their income to the application increases the income eligibility, giving you a higher loan amount and better interest rates.

Higher Down payment: If you can offer to make a higher down payment than the required minimum, the banks will give more consideration for your application. Higher the down payment means lower loan amount, which translates into lower liability. With lower loan amounts, the EMIs are also low and the customer is comfortable repaying them on time. So, banks prefer applicants who are ready to make a higher down payment.

IOB’s Pushpaka Used Car Loan FAQs: