Indian Overseas Bank (IOB) Car Loan Interest Rates
Indian Overseas Bank (IOB) Car Loan interest rates start from 7.60% p.a. for electric vehicles and 7.55% p.a. for new cars, with financing of up to 90% of the car's price. Your final rate depends on your income, credit score, loan amount and tenure. Compare the complete rate, tenure and fee details in the table below before you apply.
Features of IOB Car Loan
Features | New Car Loan | Used Car Loan | Electric Cars |
Interest rate | 7.60% p.a. onwards | Contact the bank | 7.55% p.a. onwards |
Quantum of finance | Up to 90% of the price of the car | Up to 75% of the current market price of the car | Up to 90% of the price of the car |
Loan tenure | 84 months | 84 months minus the age of the car | 84 months |
Processing fee | As applicable |
|
|
Note: The interest rates are effective from 27 August 2026.
Factors Affecting Indian Overseas Bank (IOB) Car Loan Interest Rate
The car loan interest rate offered by IOB is determined by many factors. A few of the factors and how they affect the rate are given below:
- Income: IOB takes into account the income of the individual while sanctioning the loan. This is because the bank needs to ensure that the person has sufficient disposable income and can repay the loan on time. A higher income range could translate to a comparatively low interest rate.
- Credit score: Credit scores play an all-powerful role these days when it comes to applying for a loan. A good credit score is directly related to your loan approval. If your credit score is high and you have a good rapport with the bank, they may offer a low rate of interest.
- Loan tenure: The loan tenure the applicant chooses can also have an effect on the interest rate. The bank may offer a low interest rate if you choose to repay the loan over a longer period of time.
- Car model: The model of the car is an important aspect taken into consideration since it acts as the security for the loan. In case the applicant fails to repay the loan, the bank will take over the vehicle. Banks usually check car models to ensure they have a good resale value in the future.
So banks could offer a high interest rate for a car with a low resale value and a low interest rate for a car with a high resale value.
- Age of the car: IOB offers different rates of interest for new cars and used cars. The rates are higher for new cars that require loans above Rs.10 lakh.
Summary
Indian Overseas Bank (IOB) Car Loan finances new, used and electric vehicles, with your final interest rate shaped by your income, credit score, loan tenure and choice of car. IOB finances up to 90% of the car's price for new and electric vehicles, with a separate quantum for used cars. Check the current rate and fee table above, confirm the latest figures with IOB, and apply once you are ready.
FAQs on Indian Overseas Bank Car Loan Interest Rates
1.What is an Indian Overseas Bank (IOB) Car Loan?
An Indian Overseas Bank (IOB) Car Loan is a financing facility that helps you buy a new, used or electric car through monthly EMIs. IOB decides your loan amount and tenure based on your income, credit profile and the vehicle you choose. You use the loan to pay for the car instead of paying the full price upfront.
2. Which vehicles does the IOB Car Loan finance?
The IOB Car Loan covers new cars, used cars and electric vehicles. Indian Overseas Bank sets separate terms for each vehicle type, so the financing available to you depends on whether you are buying a new, used or electric car. Check the features listed for each vehicle category before choosing your IOB Car Loan scheme.
3.What is the maximum age of a used car that IOB will finance?
Indian Overseas Bank finances a used car under its IOB Car Loan scheme only if the vehicle is under five years old. A car older than this limit does not qualify for the used car loan scheme. Check the vehicle's registration date against this limit before you apply.
4.What security does IOB require for a car loan?
The car you buy with your Indian Overseas Bank Car Loan itself serves as security for the loan. IOB records its hypothecation on the vehicle, and this lien is noted on the car's Registration Certificate. You cannot transfer the car freely until the lien is removed after full repayment.
5.Can NRIs apply for an Indian Overseas Bank Car Loan?
Yes, Non-Resident Indians can apply for an IOB Car Loan provided a resident Indian stands as guarantor for the loan. The guarantor takes on responsibility for repayment if the NRI applicant is unable to pay. Check with IOB for its complete NRI car loan documentation requirements.
6.Who is eligible for an Indian Overseas Bank Car Loan?
Eligibility for an IOB Car Loan depends on your take-home salary, your spouse's income where applicable, and your overall creditworthiness. Indian Overseas Bank assesses your disposable income to confirm you can comfortably repay the loan. You need to meet the bank's minimum income and salary criteria to qualify.
7.What factors affect the interest rate on an IOB Car Loan?
The interest rate on an Indian Overseas Bank Car Loan depends on your income, credit score, chosen loan tenure and the car model you finance. A strong credit score and a car with good resale value can help you secure a lower IOB Car Loan interest rate. Choosing a longer repayment tenure may also lower your rate.
8.Does IOB charge a different interest rate for new and used cars?
Yes, Indian Overseas Bank sets a different interest rate for new cars, used cars and electric vehicles under its IOB Car Loan scheme, and the rate can vary further with your loan amount. Check the current rate table above for the applicable figure for your loan type. Confirm the latest rate with IOB before you apply.
9.How long is the repayment tenure for an IOB Car Loan?
The IOB Car Loan offers a repayment tenure that runs for several years, with the exact limit depending on whether you finance a new, used or electric car. For a used car, Indian Overseas Bank reduces the maximum tenure by the age of the vehicle. Check the tenure listed in the table above for your loan type.
10.How do I repay my Indian Overseas Bank Car Loan?
You repay your IOB Car Loan through monthly EMIs that combine a portion of the principal with the interest due. Indian Overseas Bank calculates your EMI from your loan amount, tenure and applicable interest rate. Use an online car loan EMI calculator to estimate your instalment before you apply.
Car Loan Articles
- Car Prices in India
- How To Transfer a Car Loan to Another Person
- How GST Affected Car Prices in India
- Car Lease Vs Car Loan
- Car Loan Foreclosure Procedure
- Vehicle Registration
- Car Loan Document Checklist
- Bad Credit Car Loan
- Car Loan Refinancing
- Zero Downpayment Car Loan
- Commercial Car Loan
- Car Loan for Nris
- Car Loan Schemes for Women
- Car Loan Preclosure
- Transfer Car Registration
- Top 10 Banks for Car Loan
- Car Loan Schemes for Government Employees
- Fuel Efficient Sedan Cars
- Automatic Cars for Women
- Chepest Cars in India
Disclaimer
Credit Card:
Credit Score:
Personal Loan:
Home Loan:
Fixed Deposit:
Copyright © 2026 BankBazaar.com.