OBC Car Loan Interest Rate

Last Updated 08th Feb 2018

OBC Car Loan Interest Rate Feb 2018

OBC New Car Loan interest rate starts from 8.40% and OBC Used Car Loan interest rates starts from 10.90% . These are Floating rate loans and are one of the best car loan rates in India. Rate of interest vary by borrower occupation, loan amount and loan tenure. Check Best Offers

OBC Car Loan
Features New Car Loan Used Car Loan
Processing Fee 0.50% Min Rs. 500 0.50% Min Rs. 500
Loan Tenure Upto 7 years Upto 3 years
Lowest EMI Rs. 1,579 per lakh Rs. 3,152 per lakh
Loan Amount Upto 85% of on-road price Upto 70% of market value
Prepayment Charges Nil Nil

Trusted brand with PAN India presence

Apply Car Loan @ 9.25%*

OBC Car Loan

OBC gives car loan to borrowers who need funds to buy a new car. Benefits of taking vehicle loan from OBC are:

  • Trusted brand with PAN India presence
  • Flexible schemes
  • Quick and easy Processing

OBC Car Loan Interest Rate

OBC Car Loan interest rate depends upon following factors -

  • Loan amount: Generally banks offer lower interest rates for higher amount. OBC offers 85% of on-road price of your car.
  • Your Salary: Higher salary bracket individuals are offered loans at lower interest rates. Car Loan interest rate OBC varies with your net monthly income.
  • Employer Category: Employer category of the borrower is a major deciding factor in order to determine his/her rate of interest. OBC has a list of company categories of salaried individuals to which they avail vehicle loan. So, higher company category leads to low OBC car loan rate.
  • Relationship with the Bank: OBC offers special rates, offers and charges to the existing account holders of the bank. Those who have managed their accounts and made all the payments on time in past will get benefit of low vehicle loan interest rate.
  • Loan Tenure: OBC vehicle loans are of longer repayment tenure of 7 years.
  • Repayment Capacity: Before giving loan to the borrower, OBC checks the repayment capacity of the borrower. Bank verifies the repayment capacity of the customer through CIBIL as it has all the details of previous loans taken and their repayments. CIBIL also gives the information of credit card bills payment.

OBC Car Loan Eligibility

The following table depicts the various eligibility criteria for availing a vehicle loan.

Eligibility Criteria Eligibility Details
Age 18 years - 65 years
Minimum Annual Income Salaried: Rs. 1.50 Lakhs
Self Employed Professionals: Rs. 1.50 Lakhs
Self Employed Businessmen: Rs. 1.50 Lakhs
Minimum Credit Score 700 and above
Loan Tenure 7 years
Loan to Value Ratio 85% of on-road price

Car loan eligibility relies upon different factors but the most important factor is your ability to repay the loan. The main factors on which the eligibility of an applicant depends are:

Age: Age plays an important role to know your eligibility and repayment capacity. OBC offers auto loan to those who are atleast 18 years old at the time of loan approval and maximum 65 years at the time of loan maturity.

Income: OBC car loan calculator calculates your eligibility based upon your income. Usually bank set minimum levels of income to apply for car loan. OBC asks for net annual income of minimum Rs. 1.50 lakhs.

Job stability and Profession: Job stability is important to improve your status and eligibility for vehicle loan from OBC. If you are working with a reputed company, probability of getting car loan increases as the income is considered to be more stable and bank offers best OBC car loan interest to the employees of reputed companies.

CIBIL Score: Your past CIBIL history and repayment record of existing loans and credit cards has a direct impact on your OBC car loan eligibility. If you have a poor repayment record, then you may not get the loan but on the other side, a regular repayment record increases your vehicle loan eligibility. Generally, Bank give loan at a CIBIL score of 700 and above.

Loan Amount: OBC auto loan amount depends upon your income. OBC Bank gives 100% of ex-showroom price depending upon the value of the car. To improve chances of approval, apply for a loan amount that you can comfortably service and check your OBC car loan status online and avial multiple benefits.

OBC Car Loan Calculator

Car Loan EMI of OBC is a fixed amount that you pay each month towards the repayment of your car loan till the end of tenure. Lowest EMI offered by OBC is Rs. 1,579 per lakh loan amount at lowest car loan interest rate of 9.25%. Car Loan EMI of OBC depends on factors like:

  • Rate of interest is an important factor which affects your EMI. Higher the interest rate, higher will be the EMI.
  • Loan tenure matters equally as longer tenure reduces your monthly EMI per lakh.
  • Your EMI depends upon the amount of loan you are going to borrow. Loan EMI will be high if you apply for a high loan amount.
OBC EMI Car Loan Calculator
  • Car loan EMI calculation varies from bank to bank depending upon the method of calculation.
  • The standard convention should be to use the EMI in arrears method on reducing balance basis – whereby you pay interest on the loan amount outstanding on a reducing basis at or after the end of the month.
  • Simply key in the loan amount, rate of interest and vehicle loan tenure here and check the EMI amount using the vehicle loan EMI calculator here. In case the EMI amount displayed is different from the one advised to you by the agent, you must check the calculation basis with your vehicle loan agent.


You can calculate the monthly payment (EMI) yourself using the following equation

E= P. r. (1+r)n/[(1+r) n -1]


  • P represents the principal amount that you want to apply for.
  • r is the rate of interest per month which is calculated as rate of annual income/ (12*100)
  • n is the tenure of loan in months
  • E represents the monthly payment or EMI

Let’s say you take out a vehicle loan for Rs. 700,000 to be paid back over 5 years at an interest rate of 9.25%. Your monthly payments for this loan after applying the above formula would be Rs. 14,616 for 5 years.

OBC Auto Loan Fee and Charges

Foreclosure Charges - These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. OBC allows prepayment of vehicle loan after paying 1 EMI with prepayment Nil.

Processing Fee - OBC asks for a processing fee of 0.50% of loan amount. Min. Rs. 500and Max. Rs.0 with applicable service tax.

OBC Car Loan Top up, Balance Transfer

  • OBC offers car loan balance transfer from another bank. This is subject to your meeting other eligibility criteria
  • You can avail additional top-up car loan from OBC, subject to your eligibility

Documents required

Salaried Employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • Copy of Income Tax PAN
  • Identity Proof –Aadhaar, Passport/ Driving License/ Voter ID/ PAN
  • Quotation of car
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debit
  • R.C of Vehicle and Insurance of Car


  • Filled up loan application form
  • 2 Passport Size Photo
  • Copy of Income Tax PAN
  • Identity Proof – Aadhaar, Passport/ Driving License/ Voter ID/ PAN
  • Quotation of car
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debit
  • R.C of Vehicle and Insurance of Car.

Frequently Asked Questions on OBC Car Loan

What is car loan interest rate offered by OBC ?

As per current interest rates, OBC car loan interest rates are in the range of 8.40 % to 8.90%.

What is the lowest EMI per lakh on OBC car loan?

Lowest EMI per lakh is Rs. 1,579 for OBC for a loan availed at an interest rate of 8.40% and for a tenure of 7 years.

What is the maximum tenure of OBC car loan?

You can repay your OBC car loan in a flexible period of 7 years.

How much car loan I can borrow from OBC?

OBC offers you 85% of on-road price of car as loan.

How much processing fee is charged by OBC on car loan?

OBC charges a processing fee of 0.50% of loan amountMin. Rs. 500 and Max. Rs. 0 with applicable service tax.

Is age an eligibility factor to get car loan from OBC?

Yes, age is an important eligibility factor to get OBC car loan as you should be at least 18 years old at loan approval time and 65 years old at loan maturity time.

Are there any prepayment charges on OBC car loan?

You can take car loan from OBC with prepayment nil.

Can I add my spouse's income while applying for car loan from OBC ?

You can combine your income with the income of your spouse to increase your loan eligibility and to get higher loan amount.

Compare Car Loan Interest Rates of OBC with other banks

OBC Car Loan News - Feb 2018
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. MyLoanCare is an independent professional service provider and is not related to the government or government bodies or any regulator or any credit information bureau in any way. Information carried at this website is not and should not be construed as an offer or solicitation or invitation to borrow or lend. The Company does not undertake any liability with respect to the correctness of the content, information and calculations. Information is subject to change without notice. By submitting your query or using any tools or calculators, you authorize MyLoanCare to share your information with lender(s), consent for such lender(s) to access your credit information report and contact you regarding your query overriding your number being in National Do Not Call Registry. This is a free service and no charges are payable by the borrower to MyLoanCare. The Company may receive remuneration from lenders for services provided to them.
Subscribe to MyLoanCare Notifications

Get notified for latest Car Loan Calculator rates and offers