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CreditMantri Finserve Private Limited
CreditMantri Finserve Private Limited Unit No. B2, No 769, Phase-1, Lower Ground Floor, Spencer Plaza, Anna Salai, Chennai - 600002
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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.
About 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 -
Below are the eligibility requirements for self-employed and salaried people:
| Self Employed | Salaried |
|---|---|
| A minimum of Rs. 20000 per month | A minimum of Rs. 20000 per month |
| Minimum age limit of 18 years | Minimum age limit of 18 years |
| There is no maximum age limit | Maximum 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. |
| New Car Loan | Pre-owned Car Loan | |
|---|---|---|
| Oriental Bank of Commerce required documents for new and pre-owned cars | Proof 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-applicant | Passport 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:
| |
| Other Individuals | Authorized 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 |
| New Car Loan | Pre-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-Wheeled | Rs. 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 Margin | 15% of On-road price | 20% 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:
| |
| 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. |
| Features | New Car Loan | Pre-owned Car Loan |
|---|---|---|
| Loan period | 7 years | 3 years |
| Loan amount | 85% of on-road price | 70% 0f market value |
| Lowest EMI | Rs. 1,611 per lakh | Rs. 3,183 per lakh |
| Processing fee | 0.50% min Rs. 500 | 0.50% min Rs. 500 |
| Prepayment charges | None | None |
*New car loan interest rate approved by Oriental Bank of Commerce is 9.05%, while Pre-owned cars are 10.90%.
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.
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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