Automobile Loan SchemeSpeeding Up The Process

Purpose For purchase of New & Old Four Wheelers, Two Wheelers (old vehicles not to be older than 5 years) (non-commercial use & to be registered as private vehicle)
Eligibility Individuals as well as business concerns(corporate or non-corporate)
Age 18 years to 65 years, , subject to age for repayment
Quantum of Finance For Individuals & Proprietorship concerns: New Vehicles & Old Vehicles

No maximum ceiling on amount of loan.
(Income of spouse / major son / parents can be clubbed subject to their becoming Co-borrower or guarantor in the loan).

For business concerns and Institutions (corporate or Non-corporate): New & Old Vehicles
  • For Repayment period up-to 3 years -:Twice the average annual cash accruals i.e. PAT+ Dep. as per the last year balance sheet, P&L account.
  • For Repayment period above 3 years and up-to 5 years -:Thrice the average annual cash accruals i.e. PAT+ Dep. as per the last year balance sheet, P&L account.
  • For Repayment period above 5 years and up-to 7 years -:Five times the average annual cash accruals i.e. PAT+ Dep. as per the last year balance sheet, P&L account.

(3 year ITR also to be obtained).

No maximum ceiling on amount of finance and number of vehicles to be financed to single entity.
Margin

For New Four Wheeler vehicles -- 

a. For the existing borrowers of the Bank who have availed Mortgaged backed loan(s) from the Bank and the same is running regular for last one year- Nil Margin during Festival Bonanza Campaign period.

b. For others -10% on, on-road price (excluding accessories, Insurance and Registration Charges).

For Two Wheeler Vehicle:  10% on, on-road price (excluding accessories, Insurance and Registration Charges).

For old vehicles -- 25%
Rate of Interest As per current interest rates, BOB automobile loan interest rates are in the range of 8.75% to 9.20%.
Now Lowest EMI per lakh on BOB automobile loan is Rs. 1,596 which can be availed at an inrest rate of 8.75% and for tenure of 10 years.

Processing fee

(one Time)

 BOB charges a processing fee of 1.00% of loan amount Max. Rs. 6,000 with applicable services tax.
Documentation charges Actual Stamp/Revenue expenses only
Security Hypothecation of vehicle. RC/ comprehensive insurance policy with bank clause incorporated therein.
Repayment

For new vehicles : Maximum 84 months.

For old vehicles : Maximum 60 months subject to age of vehicle (total period of Repayment plus age of vehicle not to exceed 84 months)

The overall age of the vehicle & the repayment period together should not exceed 7 years.
Age for Repayment

Service class non pension : upto 60 years

Service class with pension : upto 70 years

Others : upto 70 years
Prepayment No prepayment penalty is levied if the loan is adjusted by the borrower from his own sources. In case of loan take over, prepayment penalty to be charged @ 1% on outstanding balance
Guarantee Individual / Proprietorship cases:
  • Where installment is paid through deduction from salary/salary account: Guarantee may be waived.
  • In other cases: Guarantee of Spouse/Major son/Third party may be obtained.
Partnership firms cases

No guarantee to be obtained as all the partners would execute the documents and would be liable jointly and severely.

Joint Stock Companies/ Trusts / Associations etc.

Personal guarantee of any Director/ Trustee / Member (other than those who is executing the documents).

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