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Car Loan

Oriental Bank of Commerce Profile

The Oriental Bank of Commerce (OBC) was founded in the year 1943 in Lahore (Pakistan), which was then in India. Within 4 years of being established, the Bank was affected by the partition of India and Pakistan. The bank moved out of newly-formed Pakistan and shifted its registered office to Amritsar.


Oriental Bank of Commerce is an Indian public sector bank headquartered at Gurgaon in Haryana. With features like phone banking, internet banking, NRI banking and more the bank has launched yet another planning process essentially to tackle the maladies of poverty. Aiming to alleviate poverty and recognise the reasons responsible for success or failure, Oriental Bank of Commerce provides cutting-edge technologies and innovative services.


Features of Oriental Bank of Commerce car loan


Oriental Bank of Commerce bank car loan has the following key features and benefits:
 

  • Maximum loan approved is 85% of on road price of a new vehicle or up to 70% of the market value for a used vehicle
  • Maximum ceiling amount for new car loan is 1 crore and Rs. 25.00 Lacs for old cars.
  • 1.00% of loan amount subject to minimum of 500/- & maximum 7000/- plus service tax as processing of the car loan application form
  • The car finance includes show room price + one time road tax + registration charges and first year's insurance cost
  • Guarantor required
  • Loan tenure by Oriental Bank of Commerce is a minimum of 1 year and a maximum of 7 years for new vehicles and 5 years for used vehicles
  • No prepayment charges are applicable
  • Loan is provided for all types and makes of cars
  • NRIs can apply for a car loan with a joint application with a close relative who resides in India

Oriental Bank of Commerce car loan details

  • Purpose

Oriental Bank of Commerce bank car loan can be availed for the purchase of all cars for personal use only. The Bank does not offer car loans for commercial use vehicles. Car loan provided by Oriental Bank of Commerce Bank can be taken for the purchase of all variants of cars which can either new or second-hand.
 

  • Target Group

People eligible for an Oriental Bank of Commerce bank car loan include:
 

a) Salaried Individuals having minimum 1 year of working experience. Previous employment can also be taken into consideration for the criterion of 1 year service.

b) Professionals such as doctors

c) Business entities having at least two years of business experience.

d) Agriculturist on the basis of their land area and capacity of repayment.

e) Non-Resident Indians can avail a Oriental Bank of Commerce bank car loan jointly with Resident Indians who is a close relative.
 

  • Co-applicants for Oriental Bank of Commerce car loan

You can apply for an Oriental Bank of Commerce bank car loan with your Spouse, Father, Mother, Brother, Son, Daughter-in-law & unmarried daughter as co-applicant.

Eligibility for availing car loan from Oriental Bank of Commerce bank

Eligibility for Oriental Bank of Commerce car loan varies according to the type of employment of the loan applicant. Car loan amount eligibility depends upon the income of the loan applicant. Requirements for Oriental Bank of Commerce car loan include the following:
 

  • Salaried:
  • Minimum 18 years of age
  • Maximum 65 years of age at loan maturity
  • Minimum income of Rs. 20000 per month
  • Should have been working with present company for a minimum of 1 year (experience at previous company will also be a consideration when covering minimum experience criterion).
  • Self-employed:
  • Minimum age: 18 years
  • No bar for maximum age
  • Minimum monthly income should be of Rs. 20000
  • Business entity in the present field should have been established for a minimum of two years.
  • Non-Residents may submit joint application along with close relatives residing in India.
  • Agricultural entrepreneurs are eligible depending on their capacity of repayment and total land holding.

Oriental Bank of Commerce bank loan for a new car

Maximum amount sanctioned for car loan provided by Oriental Bank of Commerce Bank


1. Loan ceiling amount


The maximum loan amount sanctioned for Four Wheelers is Rs.100.00 lakhs


2. Security


Hypothecation of Car purchased. The hypothecation charge will have to be registered with the RTO.


3. Collateral Security


The borrower will have to furnish a personal guarantee that is accepted by Oriental Bank of Commerce if the monthly gross income is up to Rs. 40000/-.

4. Margin for the loan is 15% on on-road price


5. Components of finance include show room price + road tax (onetime) + Registration Charges & First year's insurance cost


6. Assessment of loan amount eligibility


For salaried persons, pensioners & Professionals- the maximum amount shall be equal to 30 months’ Gross salary/pension on condition that net take home income salary is in 30-40% slab according to Annual Gross income


For Business entities -Cash generations to satisfy the repayment of the proposed loan


7. Repayment Period


The repayment tenure for Oriental Bank of Commerce bank car loan is up to 84 EMI's


The maximum age at loan maturity should be:
 

a) For Salaried (Non Pensionable) – Earlier among reaching 60 years of age and superannuation.

b) For Salaried (With Pension) - Up to 65 years having regular source of income.

c) For Business Class or Professionals: there is no maximum limit for age


The processing fees for Oriental Bank of Commerce bank car loan


1.00% of loan amount subject to minimum of 500/- & maximum 7000/- plus service tax as processing of the car loan application form.


Other charges associated with the Oriental Bank of Commerce bank car loan.
 

  • Prepayment Penalty
  • documentation charges
  • upfront fee- NIL

Documents for Oriental Bank of Commerce car loan - New Car

When applying for an Oriental Bank of Commerce bank car loan, your loan application form must be accompanied by the following documents:
 

  • Passport size photograph of applicant, co-applicant & guarantor
  • Proof of identity
  • Proof of address
  • Proof of age
  • Proof of income

For salaried applicants: Salary certificate issued by the employer or Income Tax return.


For agriculturists: Record of land holding and cropping pattern or any other proof detailing the income.


For all other individuals: Last 3 yrs. Income Tax Return & computation sheet or Bank account statement.
 

  • Quotation from authorized car dealer for the vehicle to be bought.
  • Proof of income of spouse when he or she is to be considered for determining loan amount.
  • Any other documents which may be required by the Bank.

Oriental Bank of Commerce used car loan

1. Loan ceiling amount


The maximum loan amount sanctioned for Four Wheelers is  Rs. 25.00 Lacs

2. Margin for the loan


20% (as per TVS) & 30% (Non TVS) of the market value evaluated by an expert valuer or the buying value of the 2nd hand car (whichever is less)

3. Age of vehicle and Repayment period
 

  • If car is older than 3 yrs & up to 4 yrs., the repayment has to be made within 36 Months
  • If car is older than 2 yrs & up to 3 yrs., the repayment has to be made within 48 Months
  • If car is up to 2 yrs old, the repayment has to be made within 60 Months

4. Collateral security


One third party personal guarantee as acceptable to the Bank


5. Processing fee for Oriental Bank of Commerce bank car loan


1.00% of loan amount subject to minimum of 500/- & maximum 7000/- plus service tax as processing of the car loan application form.

Documents for Oriental Bank of Commerce car loan - Second-hand car

  • Passport size photograph of applicant, co-applicant & guarantor
  • Proof of identity
  • Proof of address
  • Proof of age
  • Proof of income
  • Particulars of vehicle to be purchased and its Registration Certificate copy. The original certificate is to be produced at the time the Bank disburses car loan.
  • Sell agreement between seller and purchaser
  • Prescribed Transfer Form duly executed by the Seller for onward submission to RTO
  • Receipt copy showing up-to-date deposit of Road tax and other taxes.
  • Recent vehicle quotation  from authorized dealer
  • Any other documents which may be required by the Bank.

Oriental Bank of Commerce bank car loan interest rates

When you borrow a loan, you will have to pay it back along with an interest. This interest is charged at a certain rate which is the loan interest rate. These interest rates can be either fixed or floating in type. Depending upon the type of interest rates applicable on the lent amount, the EMIs can be equal or changing. Oriental Bank of Commerce car loan interest rate is floating in type. Further, the interest rates for Oriental Bank of Commerce bank car loan varies in case of new car loans and used car loans.


Oriental Bank of Commerce car loan interest rates for new car loans is as follows:
 

  • Up to 36 months is BR + 0.50% = 10.20%
  • Up to 84 months is BR + 0.75% = 10.45%

Oriental Bank of Commerce loan interest rates for used car loans is as follows:
 

  • Up to 60 months Oriental Bank of Commerce car loan interest rate is BR + 3.00% = 12.70%

As the interest rate for Oriental Bank of Commerce bank car loan are floating in type, you must check the interest rates before applying for the Oriental Bank of Commerce car loan to know the current rate of interest charged by the Bank.

Eligibility for Oriental Bank of Commerce car loan

Apply for a Oriental Bank of Commerce car loan only after you have checked your eligibility for the loan. Checking eligibility before applying for the car loan lets you know whether you can apply for a Oriental Bank of Commerce car loan or not. When you check Oriental Bank of Commerce car loan eligibility you know the criteria you will have to satisfy to get the loan, therefore you are saved from loan denials.  If your loan application gets turned down due to eligibility reasons, then your precious time and efforts for the car loan application go waste. Therefore, it is always advisable to check your Oriental Bank of Commerce car loan eligibility before you consider applying for the loan.


PaisaBazaar’s car loan eligibility calculator


You can check your eligibility at Bank’s website or any financial website. You can use PaisaBazaar’s car loan eligibility calculator to Check your eligibility. PaisaBazaar’s car loan eligibility calculator is a 24*7 available online tool which can be used any number of times for free. It is simple and easy-to-use tool which requires inputs from the loan applicant pertaining to the loan and his personal details.  Once the applicant fills out the entire questionnaire, the calculator checks his eligibility and displays the best deals on car loans based upon the applicant’s eligibility and requirements. Check your Oriental Bank of Commerce car loan eligibility online at PaisaBazaar and forget the hassles of visiting the bank branch.

Car loan EMI

When you borrow a loan, the lender gives you a sum of money which you will have to repay in a certain period of time with interest. The lender usually gives you a lump sum money but you will have to pay it back in parts. These parts in which you pay the lender the borrowed money is known as the EMI or Easy Monthly Installments. The monthly car loan payments made by the borrower to satisfy the borrowed amount is known as the Car loan EMI. The Car loan EMI is calculated with the help of three loan parameters, namely loan amount, loan tenure and loan interest rate.


Car loan EMI can be either fixed or changing in type depending upon the type of interest applicable on the loan. In case of a fixed rate car loan, the EMIs remain same, however for floating rate car loans, the EMIs keep changing with the fluctuations in the interest rates. Oriental Bank of Commerce bank car loan EMI is not fixed and keeps changing with the change in the base rate of the interest rate.


Car loan EMI calculator
 

It is always advisable to calculate the loan EMI before applying for a loan. Calculating EMI before you apply for a car loan lets you know the amount that you will have to pay every month in order to repay the loan. Calculating loan EMIs is beneficial as you are able to know the amount you will have to pay from your income every month thereby assessing your repayment capacity.


Car loan EMI calculator is an online financial tool which can be used to calculate the car loan EMIs. Manual calculations are time consuming and extremely complex, whereas calculating car loan EMI using the Car loan EMI calculator is simple and gives instant results.


The EMI calculator works on the following three loan parameters:
 

  • Loan amount- The amount borrowed to purchase a car is the loan amount for a car loan. The maximum amount sanctioned in case of Oriental Bank of Commerce car loan is 1 crore.
  • Loan interest rate- The rate at which interest is charged from the borrower on the loan amount is the interest rate for the loan. The rate of interest can either be fixed or floating in type. Car loan provided by Oriental Bank of Commerce Bank come with floating rate of interest. The interest rate for Oriental Bank of Commerce car loan start at 10.20% p.a.
  • Loan tenure- The time period given for repayment of the loan amount along with the accrued interest is the loan tenure. The tenure of loans are usually flexible and can be chosen by the borrower according tom his choice. Oriental Bank of Commerce auto loan comes with a maximum loan tenure of 7 years.

Calculate EMI for Oriental Bank of Commerce Bank car loans using PaisaBazaar’s Car loan EMI calculator or Oriental Bank of Commerce car loan EMI calculator.


Oriental Bank of Commerce car loan EMI calculator


Thinking about applying for the Oriental Bank of Commerce Bank car loan make sure that you check your loan EMIs prior to applying for the loan. The Oriental Bank of Commerce car loan EMI calculator can be found on the Bank’s website.

Why choose Oriental Bank of Commerce car loan?

Oriental Bank of Commerce is one of the oldest public sector banks of the country offering a wide range of financial products including customized and pre-approved car loans. OBC being a public sector bank is highly trusted by the people of the country. With high loan amount and competitive interest rates, car loans offered by Oriental Bank of Commerce Bank are considered to be one of the best car loans in India. Oriental Bank of Commerce car loan provides Car finance plans only for private use vehicles. The bank offers loans for both new and second-hand cars.


Car finance plans by OBC has the following benefits:
 

  • Wide eligibility criteria

Oriental Bank of Commerce car loans can be availed by people of all employment types of groups such as Salaried, Professionals, Business Entities, Agriculturalists, and Non Resident Indians (NRI). To help increase the income eligibility criteria of the applicant, OBC allow borrows a loan with co applicants.
 

  • Nominal processing fee

The processing fee for Oriental Bank of Commerce bank car loan is nominal. The loan applicants need to pay 1.00% of loan amount subject to minimum of 500/- & maximum 7000/-plus service tax, as processing of the Oriental Bank of Commerce car loan application form.
 

  • Finance for all car makes and types

Oriental Bank of Commerce car loans provide finance for cars of various makes and models but only for private use vehicles.
 

  • Loans for both new and second hand cars

Oriental Bank of Commerce bank car loans can be taken for the purchase of both new and used cars.
 

  • High quantum of loan

The quantum of the loan can be up to 15% of the “On Road” cost of the vehicle. The maximum amount for the Oriental Bank of Commerce bank car loan can go up to 1 Crore.
 

  • Low income eligibility criteria

The income eligibility for Oriental Bank of Commerce bank car loans is very low. You are eligible for a car loan from Oriental Bank of Commerce bank if you earn a minimum of Rs.20,000 per month.
 

  • Low rate of interest

Oriental Bank of Commerce car loan interest rates are really low, starting at just 10.20% p.a for a loan tenure of 36 months.
 

  • Long repayment tenure

In case of Oriental Bank of Commerce loan for a new car, the tenure can be up to 84 EMIs. For pre-owned car loan, the loan tenures range between 36 to 60 months depending upon the age of the second-hand vehicle.


Why apply for an Oriental Bank of Commerce bank car loan through PaisaBazaar.com?


PaisaBazaar.com is a one-stop-shop for all your requirements regarding loans, credit cards, deposits, accounts and other financial products. The website is a leading portal offering financial tools for checking your eligibility and calculating loan EMIs, unbiased comparison and advice regarding different financial products and for purchasing the same. Apply for a car loan online at PaisaBazaar.com and enjoy a bundle of benefits. You can find an array of new and used car loans at PaisaBazaar.com which you can compare based upon the loan interest rates and other features like tenure for a car loan, type on interest, car loan amount eligibility and others. We also offer the best interest rates on car loans along with providing assistance to your at every step of your car loan application procedure. You can apply for a car loan at PaisaBazaar.com and get help from our expert staff from car loan application to car loan disbursals. Apply for an Oriental Bank of Commerce car loan online at PaisaBazaar.com and get the best Oriental Bank of Commerce plans according to your requirement and eligibility.

OBC car Loan FAQs

1. Who can be considered as a co applicant for applying for a car loan from Oriental Bank of Commerce?


Ans. Any close relative such as the mother, father, spouse, son, brother, unmarried daughter or daughter-in-law of the applicant may be considered as a co applicant to apply jointly for a car loan from Oriental Bank of Commerce.

 

2. How is the car loan amount assessed at Oriental Bank of Commerce?


Ans. The maximum loan amount that can be approved by the oriental bank of Commerce will be equivalent to the gross salary or pension of 30 months. For Business Entities, their repayment capacity is assessed based on their cash generations. The income of immediate relatives can also be taken into consideration as co applicants to enhance the total loan amount.

 

3. What is the collateral that is required by Oriental Bank of Commerce for securing a car loan?


Ans. In cases where the gross monthly income of the applicant(s) is less than Rs. 40000, the Oriental Bank of Commerce accepts a personal guarantee of a third party as collateral security.

 

4. What are the charges that are covered by an oriental bank of Commerce car loan?


Ans. The components that are covered by a car loan by Oriental Bank of Commerce are:
 

  • Showroom price
  • Road Tax
  • Registration Charges
  • Insurance premium for the first year

5. Does Oriental Bank of Commerce also provide car loans for the purchase of used cars?


Ans. Yes, Oriental Bank of Commerce extends car loan options for used cars. The repayment tenure for a used car is up to 60 months and the loan amount can go up to Rs.25 lacs.

 

6. Which car variants can be purchased using OBC car loan?

 

Ans. Oriental Bank of Commerce Car Loan can be availed for the purchase of both new and old cars of all variants of cars. The only condition for the car loan is that the vehicle financed should be for private use only and not for commercial use.

 

7. I have a net monthly income of Rs. 25,000 per month, am I eligible for Oriental Bank of Commerce Car Loan?


Ans. Yes. To avail Oriental Bank Car Loan, the minimum gross monthly income must be at least Rs. 20, 000.

 

8. What is the margin for the loan?

 

Ans. The Oriental Bank of Commerce car loan features margin equal to 15% of the car’s on-road price.

 

9. What are the components of finance in Oriental Bank of Commerce Car Loan?

 

Ans. The components of finance include the registration charges, showroom price, cost of 1st year’s insurance and the first road tax payment. These are all considered as part of OBC’s car loan quantum.

 

10. Can I use Oriental Bank of Commerce car loan to purchase a vehicle for commercial use?

 

Ans. No, these bank finance options are only for cars that are intended for personal use and not for commercial use.

 

11. Is there any collateral security required for Oriental Bank of Commerce bank car loan?


Ans. Yes. All the loan applicants have to give one personal guarantee acceptable to Oriental Bank if their gross monthly income is less than Rs. 40, 000.

 

12. How is the max loan amount calculated for business entities?


Ans. If a business entity applies for an Oriental Bank of Commerce car loan, the max car loan amount is decided on the basis of the cash generation capabilities of the company. This is to ensure that they can satisfy the proposed loan repayment schedule.


13. Are there any concessions for the existing customers of the Oriental Bank of Commerce?


Ans. Yes, Oriental Bank of Commerce offers a concession in these interest rates for captive and loyal customers (OBC account holders), existing home loan borrowers and group of employees. 0. 25% concession in loan interest rates is offered to people falling under this category.


14. Can I club the income of my family members with my monthly income in order to meet the required income eligibility criteria when applying for an Oriental Bank of Commerce Car Loan?


Ans. Yes, you can have immediate family members such as spouse, brother, mother and father as co-applicants. The income of these family members can be considered to arrive at the required income eligibility criteria while applying for the Oriental Bank car loan.


15. I want to foreclose my Oriental Bank of Commerce bank car loan, how much penalty will I have to pay to the Bank?


Ans. The Bank does not charge for foreclosure of the Oriental Bank of Commerce Car Loan.


16. What maximum amount can be availed for the purchase of second hand cars?


Ans. The maximum amount that can be availed in case second hand cars is Rs. 25 lakhs.


17. If I have any further queries regarding the loan, how can I approach Oriental Bank of Commerce?

 
Ans. Oriental Bank of Commerce has a dedicated customer support for its customers and others who have any questions regarding any of its products. Car Loan borrowers can contact the bank through the toll free number. You may also visit the nearest Oriental Bank of Commerce branch to get assistance.


18. How can I apply for Oriental Bank of Commerce Car Loan?


Ans. You can apply for Oriental Bank of Commerce car loan online through PaisaBazaar.com. You can also visit the nearest branch of the Bank.