IOB Car Loan Eligibility: Income, Margin and Tenure Guide
Indian Overseas Bank’s vehicle-loan policy covers eligible individuals in employment, business and self-employment, including resident and non-resident applicants. Firms and other eligible organisations may also be considered under the bank’s policy. Approval is based on verified repayment capacity, credit assessment, documents and the vehicle being financed.
Income and age checks described by IOB
IOB’s official vehicle-loan FAQ states that salaried applicants should be in confirmed service and provide recent salary slips. It asks self-employed applicants and business owners for income-tax returns for the previous two years. The FAQ states a minimum age of 18 and a maximum entry age of 70, subject to repayment finishing before the registered borrower reaches 75. These conditions should be reconfirmed with the bank because product rules can be revised.
Margin and tenure
The same official FAQ lists a 10% down payment on the on-road price for a new car and a 25% margin for an eligible used car. It describes financing up to 90% of the on-road price for a new car and up to 75% of the market value for an eligible used four-wheeler. A repayment period of up to 84 months is listed for both new and qualifying used cars, with additional age conditions for used vehicles.
These are published scheme parameters, not a promise that every applicant will receive the maximum amount or tenure. Income, existing obligations, credit profile, vehicle valuation and internal lender assessment can produce a lower amount or a different structure.
Documents and details to prepare
- KYC and address information requested by the bank
- Recent salary slips for salaried applicants
- Recent income-tax returns for self-employed or business applicants
- Bank statements and details of existing loans
- Vehicle quotation and information about the proposed down payment
- Co-applicant or guarantor information where the applicable policy requires it
Review an indicative amount first
Check your indicative IOB car-loan eligibility and estimated EMI before you finalise the vehicle. The tool helps compare the requested amount with an initial estimate based on the information entered. Final eligibility, rate, tenure and approval depend on Indian Overseas Bank’s verification and current policy.
Questions to ask before accepting an offer
Confirm whether the rate is fixed or floating, what benchmark or reset terms apply, the complete processing and documentation charges, the margin required for the exact vehicle, and the conditions for prepayment or closure. Read the sanction terms and key fact statement carefully. A lower EMI created only by a longer tenure may increase the total amount repaid.
Primary reference: Indian Overseas Bank — Vehicle Loan FAQ. Reviewed 28 September 2026.