Indian Overseas Bank (IOB) Car Loan Interest Rates

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: 

1. 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. 

1. 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. 

1. 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. 

1. 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. 

1. 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. 

A good credit score can help you secure lower interest rates on loans and credit cards.

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