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Bank of India Car Loan EMI Calculator

Bank of India Car Loan Calculator India 2022

Last Updated 21st Jan 2022

  • Get monthly EMI as low as ₹ 1,502 per lakh with Bank of India now offering vehicle loans with loan tenure upto 7 years.
  • Lowest car loan interest rate currently offered by Bank of India is 6.85%, for which the EMI per ₹ 1 Lakh loan amount comes to ₹ 4,470 for a 2 year loan and ₹ 1,973 for a 5 year loan.
Loan Amount2 Year Loan4 Year loan7 Year loan
₹ 3 Lakh₹ 13,411₹ 7,163₹ 4,506
₹ 6 Lakh₹ 26,823₹ 14,326₹ 9,012
₹ 12 Lakh₹ 53,646₹ 28,652₹ 18,023
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Car Loan EMI Calculator Bank of India

Bank of India Car Loan EMI

  • Car loan EMI (or equated monthly installment) is a fixed amount of money paid by you to Bank of India against the loan taken. This is towards repayment of your loan to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.
  • With Bank of India offering vehicle loans with loan tenure upto 7 years, the loan EMI can be as low as ₹ 1,502 per lakh, to make it more affordable and convenient to meet your car needs. Rate of interest offered by Bank of India are as low as 6.85%.

The EMI consists of both interest payment and principal repayment. Though the EMI amount will remain constant, the principal component keeps increasing and on the other hand the interest component keeps reducing.

Features of Bank of India Car Loan

  • Borrower age should be between 21 years to maximum 65 years.
  • Maximum vehicle loan amount offered by Bank of India is upto 85% of on-road price.
  • Interest rates starts @ 6.85% depending upon down payment, net income and other factors.
  • Processing fee in Bank of India is Minimum ₹ 1,000 and Maximum ₹ 5,000.

Car Loan EMI Calculator Bank of India at different tenure

Car Loan EMI for different loan amounts and tenures @ 6.85% interest rate
Loan Amount 2 Years 3 Years 5 Years 7 Years
1 Lakh₹ 4,470₹ 3,081₹ 1,973₹ 1,502
3 Lakh₹ 13,411₹ 9,243₹ 5,919₹ 4,506
5 Lakh₹ 22,352₹ 15,404₹ 9,865₹ 7,510
10 Lakh₹ 44,705₹ 30,809₹ 19,730₹ 15,019
  • As you can see in the above table, for various loan amounts taken at the lowest rate of interest, EMI differs with changes to tenure at 2 to 7 years. Your EMI is higher when you take loan for a shorter tenure of 2 years and it is lower when you apply for a higher tenure of 7 years.
  • Your EMI consists of both interest payment and principal repayment. Though the EMI amount will remain constant, every month the proportion of interest payment and principal repaid within each EMI is different. With every EMI, the proportion of principal repayment in EMI keeps increasing and the interest component in EMI keeps reducing.

Use EMI Calculator to calculate your interest on vehicle loan at different tenure

Vehicle Loan EMI for ₹ 1 Lakh loan amount at lowest 6.85% interest rate offered by Bank of India for different tenures
2 years 3 years 5 years
Bank of India EMI for a loan amount ₹ 1 Lakh at 6.85% ₹ 4,470 ₹ 3,081 ₹ 1,973
Total amount you pay back to the bank including principal and interest ₹ 1,07,291 ₹ 1,10,911 ₹ 1,18,383
Interest you have to pay over loan tenure ₹ 7,291 ₹ 10,911 ₹ 18,383

The above table shows the longer your loan tenure, lower is the EMI you pay on the loan. However, your total interest outgo is significantly higher in a long tenure loan. In the above example, if you take a ₹ 1,00,000 loan for a period of 5 years, you pay the lowest EMI of ₹ 1,973. However, you pay an interest of ₹ 18,383 on a ₹ 1,00,000 loan.

In contrast, if you take a ₹ 1,00,000 loan from Bank of India at the lowest loan rate offered for a period of 2 years, you pay a higher vehicle loan EMI of ₹ 4,470 and pay an interest of only ₹ 7,291 which is less than half of what you paid in 5 year loan. Hence, it is advisable to choose your loan tenure wisely as longer tenure means high interest expenses.

Factors affecting Bank of India Car Loan EMI

  • Loan amount – This is the amount borrowed by a borrower from Bank of India. If you apply for a higher loan amount, your monthly EMI will be high. Bank of India gives maximum loan of 85% of on-road price of the car.
  • Interest rate - Interest rates is the rate charged by Bank of India on your vehicle loan. Higher interest rate increases your loan EMI which will increase the total cost of the loan. Lowest interest rate offered by Bank of India is 6.85%. However, it is advisable to do complete market research and compare rates online before you apply for loan.
  • Loan tenure – This is the period in which you can repay your loan in Bank of India. Longer loan tenure means lower car loan EMI. Generally, Bank of India offers loan for a maximum tenure of 7 years.

Bank of India Car Loan Calculator Formula

Emi Calculator Formula


  • 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

Here is an illustration of how Bank of India Car Loan EMI is calculated:

Let’s say you take out a car loan for ₹ 7,00,000 to be paid back over five years (or 60 months) at an interest rate of 10%. Your monthly payments for this loan after applying the above formula would be ₹ 14,873.

In above formula,

P = loan amount. This should be 85% of on-road price

n = tenure in months. For Bank of India, this can be 7 years.

r = rate of interest per annum. Current Bank of India interest on car loan is 6.85%

Tips to decide the right amount of EMI

  • Ascertain the amount you need to borrow: It is important that before approaching a bank for loan, you need to estimate the amount of loan you need to borrow. Limit your loan amount after accounting for your own available funds. Also, based on the EMI you can service, try to opt for lowest tenure of loans as long tenure loans result in huge interest outgo.
  • Review your current obligations: Before, taking a loan it is advisable to do an evaluation of your current monthly expenses including any EMI obligations that you have on your current loans. The assessment will help you to estimate the amount of EMI you can pay comfortably after taking into account other obligations. Once you arrive at the EMI you can service, you can also decide on the right loan tenure.
  • Calculate your Bank of India car loan eligibility: Your eligibility is an assessment of your repayment capacity based on your monthly income. Bank of India provides an LTV upto 85 % of on-road price and expects the borrower to fund the remaining value of property by own money. For example, at its lowest LTV, Bank of India would expect its borrowers to provide margin money. In case this margin payment is higher than your available funds as estimated by you, you might need to look for higher LTV loans, which may carry higher interest rates and hence, will result in higher EMIs.
    • Multiplier based loan amount eligibility – Bank of India calculates your loan amount eligibility by applying a multiplier to your net take home salary. This is the simplest method for calculating a loan eligibility used by banks. Generally it is 2.5 to 3 times the annual salary for salaried individuals and 6 times the annual income for self-employed professionals. The multiplier depends on the bank’s internal categorization of your employer company based on its reputation, stability, size and growth in turnover.
    • FOIR based loan amount eligibility – Bank of India will also estimate your Fixed Income to Obligations Ratio (FOIR) to ascertain the maximum EMI you can service based on your current income and other monthly expenses. The bank applies a certain ratio to your income to estimate your monthly expenses and then adds your other EMI obligations to calculate your fixed obligations. The proportion of fixed income to your calculated fixed obligations gives your FOIR. Generally, banks lend up to a maximum FOIR of 0.50. Based on the FOIR, the bank will also estimate the maximum amount of EMI you can service as a borrower. Bank of India's assessment may be different from your own assessment. Any differences in assessment may require you to readjust your loan amount requirement. You may also consider paying back other running short term loans to improve your eligibility.

Quick guide on Bank of India Car Loan

  • Key Features
    • Loan available for both salaried and self employed.
    • Borrowers within the age group of 21 and 65 years.
    • Maximum loan tenure of 7 years.
    • Interest rates in the range of 6.85% to 8.55%.
    • Lowest EMI of ₹ 1,502 per lakh.
  • Bank of India vehicle loan calculator calculates EMI considering a combination of loan amount, interest rate and loan tenure.

Car loan EMI – EMI changes in case of prepayment

In case you prepay your vehicle loan, a small penalty is levied. Prepayment in Bank of India is Nil. When you prepay, the outstanding balance on your vehicle loan reduces. Bank of India gives you two options:

  • Reduce your loan tenure and keep EMI on your car loan unchanged: This option allows you to close your loan earlier and save the interest outgo associated with the remaining tenure. This is suitable for borrowers who feel that they have adequate income to continue servicing the same level of EMIs.
  • Reduce the amount of EMI and keep your loan tenure same: This option allows you to reduce your monthly EMI and hence, increases the availability of monthly surplus which you can deploy for other purposes. This is suitable for borrowers who anticipate higher monthly personal expenses and hence, would want to reduce their monthly EMI obligations.


Why should I calculate Bank of India loan EMI before taking a loan?

It is advised to calculate vehicle loan EMI prior to taking a loan. There are several benefits of calculating your Bank of India housing loan EMI as discussed below-

  • In case EMI comes out to be more than your monthly budget, then you have the chance to apply for a lower loan amount which fits your monthly budget and makes EMI easily affordable.
  • If you already know the EMI you have to pay each month, then you can plan your spending accordingly.
  • Based on the EMI amount, you can opt for making prepayment of your car loan in future when you have surplus amount.

What is the lowest EMI per lakh offered by Bank of India on Car loan?

Bank of India offers car loan at 6.85% interest rate and hence lowest EMI on per lakh loan amount is ₹ 1,591

Can I prepay my Bank of India car loan?

Bank of India offers you an option of prepayment at Nil charges.

Is there any processing charge on car loan from Bank of India?

Car Loan from Bank of India charges a processing fee of Minimum.₹ 1,000and Maximum ₹ 5,000

Will I get the car loan from Bank of India if I have a bad credit score?

No, for taking a loan from Bank of India, an applicant must have a good credit score of 700 and above. Usually, most of the banks avoid giving loans if you have low credit score.

How does a car loan repayment happen?

The repayment of a car loan happens in the form of an EMI (Equated Monthly Installment) through the customer's bank account. The customer is required to present a few post dated cheques and sign an ECS mandate in favor of the bank at the time of disbursing the loan.

Can I have a co-applicant while applying for a Car loan with Bank of India?

Yes, you can opt for a co-applicant to take car loan from Bank of India that will increase your car loan eligibility as the income of the co-applicant is also taken into account.

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Bank of India Car Loan News - Jan 2022
  • 2021-11-29 : Bank of India Waivers Processing Fee
    Bank of India has waivered processing fees on car loans for new and used car loans. The offer is valid till 31st December 2021.
  • 2021-11-10 : Tata Motors Tie-up with Bank of India for Car Loans
    Tata Motors has signed an agreement to offer finance to its customers. The Bank of India will provide car loans to Tata Motors customers at car loan rates starting at 6.85%. In addition, the bank will offer upto 90% of the total vehicle cost, including Ex-showroom pricing + Insurance + Registration cost.
  • 2021-10-18 : Bank of India Slashes Vehicle Loan Interest Rate By 50 BPS
    Indian nationalised bank, Bank of India has slashed interest rate on vehicle loans. The rates are decreased by 50 basis points (bps), the current rates are 6.85 percent. Customers can avail of this offer till December 31, 2021.
  • 2020-08-03 : Bank of India posted PAT of Rs. 845.78 crore in Q1FY21
    Bank of India posted a net profit of Rs.845.78 crores for the period ended June 30, 2020, as against a net profit of Rs.3600.65 crores for the period ended March 31, 2020. Further, the Bank reported total income aided by retail loans like home, personal, car, two-wheeler and gold loans along with business and mudra loans of Rs.12022.48 crores during the period ended June 30, 2020.
  • 2019-08-21 : Bank of India and Indian overseas bank to introduce online portal for retail loans
    In a bid to expand retail loan business, public sector banks like Bank of India and Indian Overseas Bank are planning to introduce retail loans like housing, car loans and personal loans on the portal, psbloansin59minutes. Currently, it is open to sanction only MSME loans, but soon, retail loans will also be granted through the portal. This is done to ensure the easy availability of loans and to save borrower’s and banker’s time.
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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