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IB Vehicle Loan

IB Vehicle Loan

  • Salaried class
  • Professionals
  • Businessmen
  • Self-employed persons
  • NRIs
  • Pensioners
  • Indian Bank Staff
  • Employees of other banks with NOC from employer concerned.
Minimum Entry Age 21 years
Purpose For purchase of

  • New Two Wheeler
  • New Four Wheeler
  • Used Four Wheeler (not more than 3 years old)
Margin Two Wheelers & New Four Wheeler – 15% (Based on quotation “On Road Cost”)

For used vehicle, the loan amount will be restricted to 80 % of the Agreed Purchase Price or 60% of the valuation of the vehicle or insured Declared value (IDV) as per the latest Insurance Policy whichever is lower

Quantum of Loan Two Wheeler – Rs.5.00 lakhs

Four Wheeler – Rs.2.00 crores (including used car)

Repayment Period
  • New Two Wheeler: Maximum upto 60 months
  • New Four Wheeler: Maximum upto 84 months
  • Used Four Wheeler: Maximum upto 60 months subject to the following:
Age of Vehicle Repayment Period #
Upto 2 yrs 60 months
Above 2 yrs up to 3 yrs 48 months

# ‘Repayment period stipulated’ plus ‘the age of vehicle at the time of our sanction’ shall not exceed 84 months

Interest Rate Click here
Processing Fee Click here
Income Criteria
Type of Occupation Minimum Gross Income Eligible Amount
4-Wheeler 2-Wheeler
Salaried Person Rs.25000/- and above per month Suitable income for loan repayment Maximum 48 times of Gross monthly salary
Pensioners Pension of Rs.20,000/- and above per month Pension of Rs.10,000/- and above per month Maximum 36 times of Gross monthly pension
Professional & Self Employed / Businessmen Gross Annual Income of Rs. 3.00 lakhs above as per latest ITR Gross Annual Income of Rs.1.80 lakhs above as per latest ITR Maximum of 3 times of average Net annual income for the last two years as per latest ITR
Firms & Companies Firms / companies should be in profit during last two years Not eligible for 2-Wheeler
NRI (individuals only) Equivalent to Rs.40000/- Maximum 48 times of Gross monthly salary


Net Take Home Pay:

  • For individuals, including Professional and Self-employed, where the individual’s monthly income is reckoned for arriving at the quantum of Vehicle Loans – NTHP (after deducting proposed EMI) should be 40% of Gross Monthly Income.
  • In case of Business Class (Non-Individuals) like Partnership Firms, Limited Companies etc., DSCR of 1.5 to 2.00 – shall be maintained.


Security Hypothecation of Vehicle purchased out of the loan amount.

For Loans upto Rs.25 lakhs:

  • Tangible Security/Guarantee may be insisted based on the risk perception of the individual proposal

For loans above Rs.25 lakhs:

  • For portion beyond Rs.25 lakhs, 100% collateral security in the form of immovable properties / NSC / Fixed Deposits / Surrender value of LIC policies
  • Suitable third party guarantee may be insisted
Documents Required
  • Completed Application Form with passport size photograph
  • Proof of Identity such as PAN Card / Voter’s ID/Passport/Driving License
  • Proof of residence such as Recent Telephone Bill / Electricity Bill / Property Tax Receipt /Passport / Voter’s ID.
  • Proof of business address in respect of businessmen / industrialists.
  • Proof of Employment.
  • Salary Certificate
  • Proof of other income like rent, interest on investment, if any
  • Balance Sheet for the past three financial years in the case of Professionals, Businessmen & Self employed
  • Income Tax / Wealth Tax (if applicable) Returns for the past 3 years
  • Statement of Bank Account or copy of Bank Passbook for 6 months
  • Copy of Driving License
  • Quotation for Vehicle to be purchased from the authorized dealer

Apply for loan (Click Here)

( Last modified on Sep 29, 2021 at 04:09:55 PM )