Indian Overseas Bank Car Loan Calculator 2026
Verified IOB new car loan rates starting from 7.85% – 8.85% p.a. — calculate your exact EMI, down payment, total interest & loan amortization.
Twelve Lakhs rupees
Two Lakhs Forty Thousand rupees
| Particulars | Amount |
|---|---|
| On-Road Car Price | ₹12,00,000 |
| Down Payment Paid | ₹2,40,000 |
| Loan Principal | ₹9,60,000 |
| Total Interest Payable | ₹2,90,854 |
| Total Cost of Ownership | ₹14,90,854 |
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IOB Car Loan Rates & Charges (2026)
Comprehensive schedule of interest rate range, processing fees, tenure, and prepayment terms
Every figure below is taken directly from Indian Overseas Bank's officially published rate card and is periodically verified by our automated rate tracker.
| Particulars | IOB Car Loan Terms |
|---|---|
| Interest Rate | 7.85% - 8.85% p.a. |
| Rate Benchmark | RLLR (8.35% w.e.f. 08.10.2026, up from 8.10%) - 0.50% to RLLR + 0.50% |
| Processing Fee | Full waiver of processing charges on vehicle loans |
| Maximum Funding (LTV) | Up to 90% of on-road / invoice price |
| Maximum Tenure | 7 years (84 months) |
| Effective Date | Vehicle Loan (Non-Electric): (w.e.f 08.10.2026) |
- IOB publishes one combined "Vehicle Loan" rate table rather than separate new/old car rate rows
- RLLR CATCH-UP CONFIRMED 2026-10-16: personally re-verified live - INDIVIDUAL-Four Wheeler table headed "Vehicle Loan (Non-Electric): (w.e.f 08.10.2026)": "CIC-1 (>= 800) RLLR - 0.50 7.85" through "CIC-6 (680 to 699) RLLR + 0.50 8.85"; Electric table "CIC-1 RLLR - 0.55 7.80" through "CIC-6 RLLR + 0.45 8.80".
IOB Car Loan Scheme-wise Rates
IOB prices new car loan variants separately based on the specific loan program and applicant credit tier.
| Loan Scheme / Segment | Interest Rate (p.a.) |
|---|---|
| Vehicle Loan (non-electric), CIC-1 (>=800)RLLR - 0.50% | from 7.85% |
| Vehicle Loan (non-electric), CIC-6 (680-699)RLLR + 0.50% | from 8.85% |
| Electric vehicle | 7.80% - 8.80% |
Compare IOB with Other Car Loan Providers (2026)
New car loan interest rates across banks and NBFCs, from each lender's official rate card, sorted by lowest starting rate.
| Lender | Interest Rate (p.a.) | Est. Monthly EMI | Calculated Processing Fee | Total Payable (incl. fees & interest) |
|---|---|---|---|---|
| 7.00% - 20.00% | ₹14,489 | Not published | ₹12,17,076 | |
| 7.45% - 11.75% | ₹14,701 | No processing fee | ₹12,34,884 | |
| 7.55% - 9.65% | ₹14,748 | ₹1,416 | ₹12,40,248 | |
| 7.60% - 14.00% | ₹14,772 | Up to ₹4,800 | ₹12,45,648 | |
| 7.60% - 11.30% | ₹14,772 | Up to ₹1,770 | ₹12,42,618 | |
| 7.60% - 10.00% | ₹14,772 | Not published | ₹12,40,848 | |
| 7.65% - 9.30% | ₹14,796 | ₹5,664 | ₹12,48,528 | |
| 7.70% - 10.25% | ₹14,820 | Not published | ₹12,44,880 | |
| 7.75% - 9.30% | ₹14,843 | Not published | ₹12,46,812 | |
| 7.80% - 10.95% | ₹14,867 | Not published | ₹12,48,828 | |
| 7.85% - 8.85% | ₹14,891 | Full waiver of processing charges on vehicle loans | ₹12,50,844 | |
| 7.85% - 10.25% | ₹14,891 | ₹2,500 | ₹12,53,344 | |
| 7.85% - 14.30% | ₹14,891 | Not published | ₹12,50,844 | |
| 7.90% - 11.20% | ₹14,915 | Up to ₹10,030 | ₹12,62,890 | |
| 7.90% - 9.00% | ₹14,915 | ₹9,600 | ₹12,62,460 |
Live figures calculated for ₹9,60,000 over 84 months. Rates and fee formulas sourced directly from each lender's official website (last verified 17 Oct 2026) and auto-refreshed. GST at 18% is added where charged by the lender.
IOB Car Loan Calculation Walkthrough
Illustrative breakdown for ₹9,60,000 @ 7.85% p.a. over 84 months (7 yrs)
Itemized Cost & Disbursal Breakdown:
IOB Car Loan Eligibility Criteria
Key qualification parameters for salaried & self-employed buyers
Applicant must meet the minimum age at loan origination.
Higher thresholds may apply for luxury vehicle segments or co-borrower loans.
Credit score decides your starting rate in IOB's 7.85% – 8.85% bracket.
At least 6–12 months in current employment or 2+ years of business continuity.
All existing monthly loan installments plus the new car EMI should not exceed 50% of take-home pay.
Documents Required for IOB Car Loan
Checklist for paperless verification & fast disbursal
Proof of Identity & Signature (Any one)
PAN Card (Mandatory), Aadhaar Card, Passport, Voter ID, or Driving License.
Proof of Residence (Any one)
Aadhaar Card, Utility Bill (Electricity / Water / Piped Gas < 3 months), Registered Rent Agreement, or Passport.
Income Proof
Salaried: Latest 3 months salary slips, Form 16 / ITR for the previous financial year.
Self-Employed: Last 2 years ITR with computation of income, audited balance sheet & P&L.
Vehicle Documentation
Proforma invoice / quotation from authorized automobile dealer and booking receipt.
How to Get the Lowest IOB Car Loan Interest Rate
1. Keep CIBIL Above 750
Auto loan interest rate cards are tiered heavily by credit scores. Maintaining 750+ unlocks IOB's lowest rack rate starting at 7.85% p.a.
2. Make a Higher Down Payment
Paying 20%–30% upfront lowers your Loan-to-Value (LTV) ratio, reduces interest outgo, and decreases the lender's risk margin.
3. Check Existing Relationship
If you hold a salary, savings, or wealth account with IOB, look for pre-approved car loan offers with zero processing fees and instant sanction.
Car Loan Hypothecation (HP): Process, Fees & Removal Guide
Understanding the legal lender endorsement on your vehicle Registration Certificate (RC)
When you purchase a vehicle using a car loan from IOB, the car acts as primary collateral. Under the Motor Vehicles Act, a legal lien called Hypothecation (HP) is endorsed on your vehicle's Registration Certificate (RC) and registered with the Regional Transport Office (RTO) via Form 34. This gives IOB legal ownership rights until the loan is paid off in full.
1. HP Addition (At Loan Disbursal)
- • RTO Endorsement Fee: Standard RTO charge of ₹500 – ₹1,500 (varies by state and Parivahan portal fees).
- • Stamp Duty / Documentation: Approx. ₹200 – ₹500 for state-level agreement stamp paper.
- • Process: The dealer/bank files Form 34 so your Smart Card RC prints: “Hypothecated to Indian Overseas Bank”.
2. HP Termination (After Loan Closure)
- • Bank NOC: IOB issues a No Objection Certificate (NOC) + 2 signed copies of Form 35 upon final EMI clearance.
- • RTO Cancellation Fee: ₹100 – ₹500 for smart card reissue without the lender lien.
- • Important: You must submit the NOC to your RTO within 90 days to obtain a clean RC for hassle-free resale or insurance claims.
Indian Overseas Bank Car Loan FAQs
Frequently asked questions about IOB new car loan interest rates, EMI calculation, hypothecation, charges, and loan terms in 2026.