What is BOB Used car Loan ?
Bank of Baroda used car loan provides vehicles like MUVs, and SUVs for personal use. The process is simple with minimal documentation, and the bank offers competitive interest rates along with low processing fees, which makes it a convenient option for car buyers.
The vehicle must be purchased through approved and certified pre-owned car dealers and they should be authorized by different automobile manufacturers (OEMs).
The loan is available for salaried individuals, business owners, professionals, and directors of private or public limited companies. It comes with attractive interest rates and flexible financing options. You can get up to 75% of the car’s value based on the market price and agreement value.
Overall, it’s a convenient and affordable way to purchase a pre-owned car without putting too much financial pressure on you.
Important Key Features of BOB Used Car Loan
- Offers very low interest rates with higher loan amount.
- Financing up to 75% of market value and 75% of agreement value.
- No foreclose charges with minimum documentation.
- Quick processing with speedy disbursement.
- Minimum loan amount is Rs. 2 lakh and maximum amount is 50 lakh
Eligibility Criteria of BOB Used Car Loan
Income-wise Criteria
- Bank Staff Members – They are eligible under the public scheme
- For Salaried Employees and Pensioners – Minimum Gross Annual Income should be 2.50 lakh & above
- For Businessmen, Professionals and Directors – Minimum Gross annual income should be 3 lakh & above
- Agriculture & Allied Activities – Minimum Gross annual income should be 3 lakh & above
Age Criteria
- Minimum age: 21 years
- Maximum age at loan end: 70 years
Interest rates of BOB Used Car Loan
Fixed Interest Rate
| Product | Conditions | Rate (MCLR + Spread) | Effective Interest Rate |
| Car Loan | Used Car or Pre-Owned car | 1 Year MCLR + SP + 2.90% to 5.65% | 11.90% to 14.65% |
Floating Interest Rate
| Product | Conditions | Rate (BRLLR + Spread) | Effective Interest Rate |
| Car Loan | Used Car or Pre-Owned car | BRLLR + SP + 2.50% to 5.25% | 10.65% to 13.40% |
Note –
- An additional 0.05% interest rate will be charged if the customer does not opt or eligible for GCLI (Group Credit Life Insurance).
- Interest will be calculated on daily reducing balance.
- Based on CIBIL or credit score it should be at least 701 and above.
- Slightly lower score will also be considered for used car loan.
Difference Between New Car Loan Vs BOB Used Car Loan
| Point | Details |
| Bank Name | Bank of Baroda |
| Loan Type | New Car Loan & Used Car Loan |
| Interest Rate | Affordable and competitive |
| Loan Amount | High loan amount available |
| Repayment Period | Up to 7 years |
| Age Eligibility | 21 to 65 years |
| CIBIL Score | 701 or above = Better interest rates |
| Lower Score | May result in higher interest rate |
| Suggestion | Compare new vs used car loan before choosing |
List of Document Required for BOB Used Car Loan
| Requirement | Details |
| KYC Documents | Copy of PAN Card, Aadhaar Card, Passport, Driving License, etc. |
| Existing Customers | No need to submit new KYC if • Account is at least 6 months old • KYC is updated in last 2 years |
| Other Customers | Prefer E-KYC (online verification) or normal KYC process |
| Bank Statement | • For Existing customer – Not required • For New customer – Last 6 months bank statement required |
| Income Proof (IT Return) | • For Self-employed – Last 2 years ITR along with computation • For Salaried Individual – 1 year ITR + last 3 months salary slips along with form 16 |
| NACH Form | Required if bank asks (for EMI auto-debit setup) |
| Car Quotation | Must be from bank-approved dealer only |
| Important Rule | Quotation from sub-dealers, brokers, or agents will NOT be accepted |
| Car Documents | Copy of RC (Registration Certificate) and Insurance |
Other Important Terms of BOB Used Car Loan
| Point | Details (Easy Explanation) |
| Repayment Period | • Maximum loan period will be 60 months or 5 years • Loan period + car age should not exceed 96 months or 8 years |
| Margin (Loan Amount Limit) | Bank will finance the lowest of these 3 values • 75% of car finance of market value • 75% of invoice or agreement value • 100% of IDV (insurance value) |
| CIBIL or Bureau Score | Must be minimum score as per bank rules generally 701 or above |
| Age Eligibility | • Applicants minimum age should be 21 years • Co-applicant minimum age should be 18 years • Maximum age (with loan period) 70 years |
| Security | Car will be hypothecated or mortgage to the bank (bank has ownership rights until loan is repaid) |
| Insurance | Must take comprehensive insurance with bank as per clause |
| Pre-payment Charges (Floating Rate) | No charges (Free prepayment) |
| Pre-payment Charges (Fixed Rate) | • Up to 40,000/- within 2 years No charge required • After 2 years No charge will be taken • Above 40,000/- within 2 years 2% + GST • Full closure within 2 years 2% + GST |
Benefit to use EMI Calculator for BOB Used car Loan
- Low Interest Rate – The loan comes with low interest rate for making it affordable
- Affordable EMI – Lower interest means your monthly EMI is easy to pay
- Repayment Period – You can repay the loan within 5 years
- High Financing – Bank can finance up to 90% of the car value
- Less Documentation – Simple process with minimal paperwork
- No Foreclosure Charges – You can close the loan early without extra charges
- Fast Processing – Loan application is processed quickly
- Quick Disbursal – Loan amount is given fast after approval
How to Apply for BOB Used Car Loan
1 Check Eligibility
- Age between 21 to 65 years
- Good CIBIL score (preferably 701 above)
- Stable income will always prioritized for both salaried and self-employed
2 Choose Your Car
- Select a used car from a bank-approved dealer
- Get a proforma invoice (quotation)
3 ArrangeNecessary Documents
- KYC (Aadhaar or PAN Card)
- Income proof (salary slip and ITR)
- Bank statement (last 6 months if required)
- Car documents (Copy of RC and insurance)
4 Visit Bank Website for Apply Online
- Go to nearest Bank official website – www.bankofbaroda.co.in
- Or you may apply through SMS ‘AL’ [Space] ‘Name’ to 8422009988.
5 SubmitApplication Form
- Fill form with all personal, income, and vehicle details
- Attach all required documents if needed
6 LoanVerification
- After filling all information bank will checkout your documents, CIBIL score, and repayment capacity
7 LoanApproval
- If your profile fit for requirement then your loan gets approved with certain terms & conditions
8 Loan Disbursal
- After getting final approval from the bank loan amount will be paid to the car dealer by bank.
9 VehicleDelivery
- You will have to complete disbursement process and take delivery of your car
Conclusion
A Bank of Baroda used car loan or pre-owned car loan is a good option if you want to buy it at very affordable cost. It offers flexible repayment options up to 5–7 years with very low interest rates and high loan amount.
The process is simple with minimal documentation and quick approval, you can also pre-pay or close the loan amount without any heavy charges. Overall I must say that it is a convenient and budget-friendly way to own a used car loan without financial stress. 🚗
