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Key Features of Bank of India Car Loan

  • Wide Range of Eligible Applicants:
    Available to salaried individuals, professionals, self-employed persons, non-resident Indians NRIs, and businesses/corporate entities (e.g., proprietorships, partnership firms, and companies).
    NRIs can apply jointly with a resident Indian who is a close relative, ensuring accessibility for a diverse customer base.
  • Loan Amount Flexibility:
    For individuals: Up to ₹50 lakh for Indian-manufactured vehicles and ₹100 lakh for foreign vehicles.
    For businesses/corporate entities (including fleet operators): Up to ₹200 lakh.
    NRIs: Up to ₹50 lakh.
    Financing can cover up to 100% of the ex-showroom price for eligible applicants, depending on income and creditworthiness.
  • Purpose and Vehicle Types:
    Applicable for purchasing both new and used four-wheelers (provided the used vehicle is not more than 3 years old and doesn’t require a heavy-duty license).
    Can also be used to reimburse the cost of a car already purchased with personal funds, offering flexibility for recent buyers.
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    • New and Used Car Financing: Supports the purchase of new cars, including passenger cars, SUVs, and multi-utility vehicles (MUVs). Also finances used cars, provided they are not more than 3 years old and certified by a reputed automobile engineer.
    • High Loan-to-Value (LTV) Ratio: - New Car Loans: Up to 100% funding of the car’s invoice value, minimizing the need for additional savings.
      - Used Car Loans: Up to 95% of the car’s value, with premium vehicles eligible for up to 110% LTV under specific conditions.
    • Loan Against Car (Top-Up Loan): Pledge your existing vehicle as collateral to avail additional funds up to ₹50 lakhs or 90%-250% of the car’s value, depending on credit score and repayment history. Ideal for urgent financial needs without selling your car.
    • Quick and Convenient Application Process: Apply online via the Bank of India website (bankofindia.co.in) or visit a branch. Steps: Visit the loan section, select "Car Loan," fill in details, upload documents, and submit. The bank follows up for verification and approval.
    • No Additional Collateral Required: The vehicle itself acts as collateral, making the loan more accessible with no need for extra security or guarantees.
    • Convenient Application Channels: Apply online through the Indian Bank website or mobile app, or visit a branch. You can also use virtual assistants like TIA (24/7) and WhatsApp support for a seamless experience.
    • Special Benefits:
      • During festive seasons or campaigns (e.g., BOI Utsav), additional concessions on interest rates and processing fees may apply, making it an attractive option for seasonal buyers.
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Benefits of Bank of India Car Loan

  • Affordable Financing with Competitive Interest Rates: Interest rates start as low as 8.75% p.a. (as of recent updates), calculated on a daily reducing balance, which lowers the total interest paid compared to flat-rate loans.
    During festive seasons or promotional campaigns (e.g., BOI Utsav), rates have historically dropped to 6.85% p.a. with waived processing fees, offering significant savings.
    Affordable EMIs ensure that car ownership fits within your budget without financial strain.
  • High Loan Amount Coverage: Individuals can borrow up to ₹50 lakh for Indian vehicles and ₹100 lakh for foreign ones, while businesses can access up to ₹200 lakh—ideal for personal use or fleet expansion.
    Financing can cover up to 100% of the ex-showroom price for eligible applicants, reducing the need for large upfront payments.
    This flexibility caters to a wide range of vehicle preferences, from budget cars to luxury models.
      • Freedom to Prepay Without Penalties: The absence of prepayment charges is a major advantage, allowing borrowers to pay off the loan early if they come into extra funds.
      • Cost-Effective with Low Processing Fees: A modest processing fee of 0.23% of the loan amount (capped at Rs. 10,000) ensures that borrowers aren’t hit with high upfront costs.
      • Quick and Convenient Application Process: Fast approvals mean borrowers can drive away their vehicle sooner, especially beneficial for those needing a car urgently for work or family needs.
      • Support for Both New and Used Cars: Financing for used cars (up to 3 years old) makes vehicle ownership affordable for budget-conscious buyers who may not want or need a brand-new car.
      • No Extra Collateral Needed: The financed vehicle itself secures the loan, eliminating the need to pledge additional assets, which reduces risk and complexity for borrowers.
      • Financial Flexibility with Top-Up Loans: Access additional funds (up to 180% of the car’s value, capped at ₹47 lakhs) through refinancing or top-up options, providing a safety net for emergencies or other expenses.
      • Bundled Insurance Convenience: Option to include comprehensive insurance with EMI payments via Mahindra Insurance Brokers Ltd., simplifying vehicle protection and budgeting under one plan.
      • Empowers Rural and Semi-Urban Buyers: With a strong presence beyond metro cities, Indian Bank supports customers in smaller towns and villages, bridging the gap where banking services may be limited.
      • Customizable EMI Plans: Flexibility to opt for fixed EMIs or adjustable plans (e.g., step-up or reducing balance) ensures payments align with your financial growth, enhancing affordability over time.
      • Empowers Vehicle Ownership Dreams: Whether it’s a first car, a family SUV, or a luxury upgrade, the loan makes ownership achievable without compromising financial goals. affordability over time.
      • Customizable Loan Terms: Use the BOI Car Loan EMI Calculator online to tailor the loan amount, tenure, and EMI to your financial capacity. Eligibility-based financing ensures the loan aligns with your income level.
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How to Apply for a Bank of India Car Loan

Option 1: Online Application
  1. Visit the Official Website
    • Go to bankofindia.co.in, the official Bank of India website.
    • Navigate to the "Loans" section under "Personal Banking" or "Retail Loans" and select "Star Vehicle Loan" or "Car Loan".
  2. Check Eligibility and Use EMI Calculator (Optional)
    • Review eligibility criteria such as age, income, and employment type.
    • Use the EMI Calculator to estimate your monthly installment based on loan amount, interest rate (starting at 8.75% p.a.), and tenure (up to 7 years).
  3. Fill Out the Application Form
    • Click "Apply Now" to access the online application.
    • Enter personal details: Name, contact info, occupation, and address.
    • Specify loan details: Amount (up to ₹50 lakh for individuals), vehicle type (new/used), and tenure.
    • NRIs should provide resident co-applicant details.
  4. Upload Required Documents
    • Scan and upload KYC, income proofs, bank statements, and vehicle quotation.
    • Ensure documents are clear and in PDF or JPEG format.
  5. Submit the Application
    • Review all details and submit the form electronically.
    • You will receive confirmation with a reference number via email/SMS.
  6. Follow-Up and Verification
    • BOI representatives may call or email for verification and request additional documents.
  7. Loan Approval and Disbursement
    • Upon approval, sign the loan agreement digitally or at the branch.
    • The loan is disbursed directly to the vehicle dealer or to your account for reimbursement.
  1. Locate a Branch
    • Use the branch locator on the BOI website or call toll-free 1800 103 1906.
  2. Visit the Branch
    • Request the Star Vehicle Loan application form from the loan desk.
  3. Discuss Loan Requirements
    • Consult with a bank officer to calculate EMIs and verify your eligibility.
  4. Complete and Submit the Form
    • Fill out the form with personal and financial information.
    • Attach photocopies of the required documents (carry originals for verification).
  5. Verification and Approval
    • The bank will verify your documents and conduct credit checks.
    • Approval typically takes 2–7 working days.
  6. Sign Agreement and Disbursement
    • Once approved, sign the agreement at the branch.
    • Funds will be released to the dealer or to your account.

Eligibility Criteria for Bank of India Car Loan

  • Salaried Individuals: Permanent employees of government, PSUs, private companies, or reputed organizations. Includes pensioners with regular pension through BOI or other banks.
  • Self-Employed Individuals and Professionals: Business owners or professionals like doctors, lawyers, CAs with a stable, verifiable income.
  • NRIs: Employed abroad with a valid job contract or work permit. Must apply with a resident Indian as co-applicant or guarantor.
  • Businesses/Corporate Entities: Proprietorships, partnerships, companies, trusts, or societies. Fleet operators are also eligible.
  • Special Categories: Existing BOI customers, staff, and retirees may get preferential terms.
  • Minimum Age: 21 years at the time of application.
  • Maximum Age: 65 years at the time of loan maturity. May vary for NRIs or self-employed based on income stability.
  • Business entities are assessed on operational history, not age.
  • Salaried: Loan up to 24 times gross monthly salary. Stable employment (1-2 years preferred).
  • Pensioners: Regular pension income qualifies similarly to salaried applicants.
  • Self-Employed/Professionals: Loan up to 2x average annual income or cash accrual (based on 2-3 years' ITRs). Income should be ₹3-5 lakh+ annually.
  • NRIs: Stable overseas income with supporting documents. Max loan ₹50 lakh, subject to co-applicant eligibility.
  • Businesses/Corporates: Loan up to 2x average annual cash accrual. Minimum DSCR of 1.25. Minimum 2-3 years' operations.
  • Credit Score: While no fixed cut-off, a score of 700+ is preferred.
  • EMI Cap: Total EMIs should not exceed 50-60% of monthly income.
  • Businesses: Financial health, profitability, and DSCR are key.
  • Four-wheelers only. No heavy-duty/commercial vehicles.
  • New vehicles (Indian or foreign-made) and used vehicles (not older than 3 years).
  • Reimbursement possible for recently purchased vehicles (within 3-6 months).
  • Individuals: Up to ₹50 lakh for Indian cars, ₹100 lakh for foreign cars.
  • NRIs: Up to ₹50 lakh (with co-applicant).
  • Businesses: Up to ₹200 lakh (e.g., fleet purchase).
  • Margin: Usually 10-20%, but 100% financing possible for high-credit borrowers.
  • KYC documents: Aadhaar, PAN, Passport, etc.
  • For NRIs: Resident co-applicant or guarantor required.
  • Proof of income and vehicle quotation needed.
  • Vehicle must be hypothecated to BOI as security.
  • Identity Proof: Aadhaar, PAN, Passport, Voter ID, DL
  • Address Proof: Aadhaar, utility bills, passport, rent agreement, etc.
  • Income Proof:
    • Salaried: Salary slips (3 months), Form 16/ITR (2 years)
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Documents Required for Bank of India Car Loan

  • Identity Proof (any one): Aadhaar Card, PAN Card (mandatory), Passport, Voter ID, Driving License, Government-issued ID
  • Address Proof (any one): Aadhaar Card (if updated), Utility bill (last 3 months), Passport, Registered Rent Agreement, Property ownership documents, Bank passbook/statement with address
  • Photographs: 2–3 recent passport-sized photographs of the applicant (and co-applicant, if applicable)
  • Application Form: Duly filled and signed BOI Car Loan application form
  • Vehicle-Related Documents:
    • New Vehicles: Proforma invoice or quotation, Vehicle details (make, model, variant)
    • Used Vehicles: RC copy, Valuation report, Insurance policy copy, Ownership transfer documents
  • For Salaried Individuals: 3 months’ salary slips, Form 16 or ITR (last 2 years), 6-month bank statement, Appointment letter (optional)
  • For Pensioners: Pension payment order, Bank statement with pension credits
  • For Self-Employed Individuals/Professionals: ITR (2–3 years), Balance sheet and P&L statement, Business account bank statement, Business proof (GST, licenses, certificates)
  • For NRIs: Employment contract, Payslips (3 months), NRE/NRO account statement, Passport & visa, Power of Attorney (if applicable)
  • For Businesses/Corporate Entities: ITR/tax audit report, Audited financials (2–3 years), Business bank statement, Registration proof, Board resolution (for companies)
  • For NRIs: Guarantor’s KYC and income proof, Relationship proof with co-applicant
  • For Used Vehicles: Ownership transfer documents (Form 29/30), NOC from previous owner/financier
  • For Reimbursement Cases: Sale receipt, RC and insurance in applicant’s name
  • For Businesses (Fleet Purchase): Vehicle list, Proof of business use
  • Signed Loan Agreement
  • Post-Dated Cheques (PDCs) or ECS mandate
  • Hypothecation Agreement with BOI as lienholder in RTO records

Key Factors for a BOI Car Loan

  • 1. Applicant’s Profile:
    • Includes salaried, self-employed, NRIs, and business applicants.
    • Stable employment or business history (2–3 years) preferred.
    • Age eligibility: 21 to 65 years at loan maturity.
    • BOI account holders, staff, and pensioners may receive benefits.
  • 2. Income and Repayment Capacity:
    • Loan eligibility based on gross salary or business income.
    • DTI (Debt-to-Income) ratio should be within 50–60%.
    • Regular income and good repayment ability are essential.
  • 3. Creditworthiness:
    • CIBIL score of 700+ preferred; 750+ offers better terms.
    • Clean credit history with no defaults or delays is important.
  • 4. Loan Amount:
    • Individuals: Up to ₹50 lakh (Indian), ₹100 lakh (foreign vehicles).
    • Businesses: Up to ₹200 lakh.
    • 100% financing possible for strong profiles.
  • 5. Vehicle Type and Condition:
    • New vehicles: Up to 7 years tenure, lower interest.
    • Used vehicles: Up to 3 years old, higher interest.
    • Commercial use requires proper documentation.
  • 6. Interest Rate Determinants:
    • Starts at 8.75% p.a.; varies by credit score and tenure.
    • BOI offers festive and category-based rate concessions.
  • 7. Repayment Tenure:
    • New cars: Up to 84 months.
    • Used cars: Up to 36 months.
    • No prepayment penalties for early closure.
  • 8. Documentation Quality:
    • KYC documents, income proofs, and vehicle documents required.
    • Accurate and complete submission ensures fast processing.
  • 9. Down Payment/Margin Money:
    • Standard margin: 10–20% of vehicle cost.
    • Full financing available for high-credibility applicants.

FAQs On BOI Car Loan

What is the Bank of India Car Loan?
The BOI Car Loan, part of the Star Vehicle Loan Scheme, is a financing option to purchase new or used four-wheelers (up to 3 years old) for personal or business use. It offers competitive interest rates (starting at 8.75% p.a.), flexible tenures (up to 7 years), and loan amounts up to ₹200 lakh, depending on the applicant’s profile.
Who is eligible to apply for a BOI Car Loan?
  • Salaried individuals: Government, PSU, private employees, and pensioners.
  • Self-employed professionals and business owners.
  • NRIs (with a resident co-applicant/guarantor).
  • Businesses and corporates with operational history.
  • Age: 21–65 years (at loan maturity).
What types of vehicles can I finance?
  • New four-wheelers (Indian or foreign makes).
  • Used vehicles up to 3 years old (no heavy-duty license required).
  • Vehicles for personal, business, or fleet use.
  • Reimbursement possible for purchases within 3–6 months.
What is the maximum loan amount I can get?
  • Individuals: Up to ₹50 lakh (Indian vehicles), ₹100 lakh (foreign vehicles).
  • NRIs: Up to ₹50 lakh.
  • Businesses/Corporates: Up to ₹200 lakh.
  • Up to 100% of the ex-showroom price may be financed.
What is the interest rate for a BOI Car Loan?
  • Starts at 8.75% p.a. for new vehicles (daily reducing balance).
  • Used vehicles may attract 1% higher interest.
  • Rates depend on credit score, tenure, and promotional offers (as low as 6.85%).
What is the repayment tenure?
  • New Vehicles: Up to 7 years (84 months).
  • Used Vehicles: Up to 3 years (36 months).
  • No prepayment penalties on early closure.
How do I apply for a BOI Car Loan?
  • Online: Visit bankofindia.co.in → Loans → Star Vehicle Loan → Apply online.
  • Offline: Visit a BOI branch and apply in person.
  • A bank representative will verify and approve your application.
What documents are required?
  • Identity and address proof (Aadhaar, PAN, etc.).
  • Income proof (salary slips, ITRs, Form 16).
  • Bank statements.
  • Vehicle invoice or RC (for used cars).
  • For NRIs: Employment proof and co-applicant documents.
Are there any processing fees?
  • New Vehicles: 0.25% of loan amount (₹1,000–₹5,000).
  • Used Vehicles: 1% of loan amount (₹500–₹10,000).
  • Waivers may apply during promotional campaigns.
Can I get a loan without a down payment?
Yes, 100% financing is possible for applicants with high credit scores and stable income. Otherwise, a 10–20% margin is typical.
What happens if I miss an EMI?
A 2% penalty above the applicable interest rate may be charged on the overdue amount. Continuous defaults affect your CIBIL score and can lead to legal action or repossession. Contact BOI for restructuring if facing financial issues.
Can I prepay the loan?
Yes, BOI allows both partial and full prepayment without penalties. Early closure helps save on total interest payable.

List of Bank of India Car Loans

  • Bank of India New Car Loan
  • Bank of India Used Car Loan (Pre-Owned Car Loan)
  • Bank of India Electric Vehicle (EV) Car Loan
  • Bank of India Car Loan for Agriculturists
  • Bank of India NRI Car Loan
  • Bank of India Top-up Car Loan
  • Bank of India Loan Against Car (Car Refinance Loan)
  • Bank of India Commercial Vehicle Loan
  • Bank of India Luxury Car Loan
  • Bank of India Insta Car Loan (Instant Approval Online)
  • Bank of India Pre-approved Car Loan
  • Bank of India Car Loan Balance Transfer